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Senate probes Shell over Joint Venture default, seeks $200m refund to FG

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Senate probes Shell over Joint Venture default, seeks $200m refund to FG

 

By John Akubo

For failing to comply with the Petroleum Act thereby breaching the Joint Venture Agreement entered into with the Federal Government the Senate, on Wednesday, constituted an Ad-Hoc Committee to investigate Shell Petroleum Development Company (SPDC)

The Ad-Hoc Committee was mandated to probe the Oil Mining Lease granted to SPDC between 1959 to 1989 and 1989 to 2019 under the SPDC/NNPC Joint Venture agreement.

The Ad-Hoc Committee which was constituted by the Senate President, Ahmad Lawan, has Senator Aliyu Sabi Abdullahi as its Chairman.

Other members on the panel include Senators George Thompson Sekibo, Abdullahi Yahaya, Bassey Albert Akpan, Olamilekan Solomon Adeola, Smart Adeyemi, and Aishatu Dahiru Ahmed.

Accordingly, the chamber demanded a refund of $200 million (USD) or any amount short of what was paid by SPDC, including penalties and interests under the said lease agreements to the coffers of the Federal Government.

The resolution was reached by the chamber after it considered a motion sponsored by Senator George Thompson Sekibo (PDP, Rivers East).

The motion was entitled, “non payment of the sum of $200,000,000 accruals from the Oil Mining Lease (OML), by Shell Petroleum Development Company of Nigeria Limited under the SPDC/NNPC Joint Venture Agreement and, illegal and unlawful renewal of Oil Mining Leases by the Ministry of Petroleum Resources/Department of Petroleum Resources (DPR) contrary to the provision of paragraph 10 of the First Schedule to the Petroleum Act 1969 (now Section 86(1) and 86(6) of the Petroleum Industry Act 2022.”

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Sekibo, in a presentation, observed that the SPDC/NNPC Joint Venture (JV) agreement, in contravention of the provisions of the Petroleum Act 1969, by the defunct Department of Petroleum Resources (DPR) and the Ministry of Petroleum Resources, granted to the SPDC/NNPC a 30-year Oil Mining Lease from 1959 to 1989.

He observed that doing so constituted an illegal extension of the Oil Mining Lease by 10 years in the first instance, instead of the prescribed term of 20 years, without recourse to the provisions of the Petroleum Act 1969 in paragraph 10 of the First Schedule.

According to the lawmaker, “upon the expiration of the initial Oil Mining Lease in 1989, SPDC/NNPC JV, was granted another 30-year Oil Mining Lease again from 1st July 1989 to 30th June 2019, by the Ministry of Petroleum Resource/DPR instead of the 20 years lease period prescribed by the Petroleum Act, which is contrary to paragraph 10 of the First Schedule to the said Act”.

He disclosed that in the initial additional 10 years Oil Mining Lease of 1969 to 1989, illegally granted to the SPDC/NNPC JV by the Ministry of Petroleum Resources/DPR, the Federal Government lost from fees, taxes, rents, and royalties the sum of $120, 000, 000.

He stated that in the second instance of the extra 10 years the Federal Government also lost a further sum of $80,000,000, making a total of $200,000,000.

He noted that a loss of $200,000,000, which is equivalent to N83, 130, 000, 000 billion, could have been of great value to the economy of the nation.

He observed that the illegal action by the Ministry of Petroleum Resources/DPR as regards the SPDC/NNPC JV may not be the only non-compliant grant as details of other Joint Venture agreements with Chevron Nigeria Limited, ENI Joint Venture, EXXON Mobil Upstream JV, Total E & P Nigeria Limited JV, need to be ascertained through a thorough investigation to verify compliance with the provisions of the extant law.

He expressed worry that the trend of illegal extension of Joint Venture (JV) period from 20 years to 30 years lease period without recourse to the Petroleum Act may have also applied to other Joint Venture agreements with the International Oil Companies (IOCs) and need to be investigated.

Sekibo informed the chamber that SPDC went to Court on the clarity of the lease period and the judgment was not in their favour as regards the additional 10 years lease period in the two instances.

“Regrettably, the court failed to order the SPDC to pay the arrears the 20 years lease period to the tune of $200,000,000 to the Federal Government for the illegal extensions”, he said.

The lawmaker further disclosed that a whistle-blower petitioned the EFCC on the need to recover the sum of $200,000,000 from SPDC for these illegal extensions by the Ministry of Petroleum Resources/DPR and to further investigate all other Joint Venture agreements that involved the aforementioned IOCs.

He noted that the power to make laws for the Federation as vested in the National Assembly by the Constitution also encompasses the power to make laws for the promotion of national prosperity and a dynamic self-reliant economy as provided in section 16(1)(a) of the 1999 Constitution of the Federal Republic of Nigeria as amended.

He emphasised that the Constitution also gives power to each House of the National Assembly to carry out an appropriate investigation on an observed misapplication of the laws enacted by the National Assembly, as provided in Section 88 of the Constitution.

He stated further that Section 89 of the same Constitution provides the process on how such investigation should be carried out.

Accordingly, the Senate resolved to constitute an Ad-Hoc Committee to investigate the non-compliance with the Petroleum Act and the Oil Mining Lease granted to SPDC between 1959 to 1989, and 1989 to 2019 under the SPDC/NNPC Joint Venture Agreement; and compel SPDC to refund to the Federal Government the sum of $200,000,000 or any amount short of what was paid, including penalties and interests under the said lease agreement.

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Salvation for All Souls Global Outreach Provides Free Medicals at Osun

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The Salvation for All Souls Global Outreach, SAFAS, a leading evangelical ministry with a focus on delivering free humanitarian and robust healthcare for the less privileged in the society has concluded its one-day free medical outreach in Ifewara, Osun State, where hundreds of residents benefitted from various healthcare services.

The outreach, which was held on Saturday, April 25, 2026, at Akinyemi Memorial Grammar School, offered free medical consultations, health screenings, surgeries, dental care, medications, eye care services including free glasses, as well as health education.

The ministry also provided financial support to widows and widowers in the community.

The initiative, carried out in collaboration with the Christian Medical and Dental Association, Osun State chapter, forms part of SAFAS’ established model of combining medical intervention with a follow-up crusade, a structure the organisation has previously implemented in Lagos, Abeokuta and Ibadan before extending to Ifewara.

Speaking on the development, the President of SAFAS, Apostle BOT Adeyemi, said the outreach reflects the organisation’s commitment to meeting the holistic needs of communities, noting that the model has consistently delivered impact across different locations as it addresses both physical and spiritual concerns.

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Also, the Media Director of SAFAS, Ayomikun Bamgboye, explained that the approach goes beyond immediate relief, adding that the integration of medical outreach with a crusade ensures sustained engagement and deeper transformation within host communities, as seen in previous outreaches across the country.

One of the participating medical practitioners, who spoke on the exercise, described the outreach as timely and impactful, noting that many beneficiaries accessed quality healthcare services they would otherwise not have been able to afford.

Following the medical outreach, the organisation is set to commence a crusade in Ifewara from April 27 to May 1, 2026, aimed at providing spiritual support and reinforcing the gains recorded during the medical intervention.

SAFAS has continued to expand its outreach footprint across Nigeria through integrated programmes that combine healthcare delivery with social and spiritual support for underserved communities.

Photo Caption
Health officials offering free medicals at the event

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Horror in Kogi: Gunmen Abduct 24 Pupils in Orphanage Raid, 15 Rescued

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Tragedy struck in Kogi State as armed men invaded an orphanage facility and abducted 24 persons, including 23 pupils and the wife of the school proprietor, in a violent night attack that has thrown the community into panic.

The Kogi State Government confirmed the incident on Monday, revealing that security operatives have so far rescued 15 of the victims, while efforts are ongoing to free the remaining abductees.

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According to the State Commissioner for Information, Kingsley Fanwo, the attack occurred on Sunday, April 26, 2026, when gunmen stormed the premises of the Dahallukitab Group of Schools, a facility located in a remote and bushy area of the state.

Fanwo explained that the orphanage was not registered with the state government, describing its operation as illegal and noting that it had no formal approval or security clearance from relevant authorities.

He said the attackers whisked away 23 pupils alongside the wife of the proprietor before security agencies swiftly responded to the distress call.

“The swift intervention of security agencies led to the rescue of 15 of the abductees, while efforts are ongoing to secure the release of the remaining victims,” the commissioner stated.

Security operatives, led by the Nigeria Police Force in Kogi State and supported by other agencies, have intensified search-and-rescue operations in surrounding forests and suspected escape routes.

Fanwo commended the professionalism of the security forces, noting that their rapid response helped prevent a worse outcome.

He also raised concerns over the operation of unregistered schools and orphanages in isolated locations, warning that such establishments expose children and staff to serious security risks.

According to him, the government has reiterated its warning to operators of educational and care facilities to ensure proper registration and compliance with safety regulations.

He added that investigations are ongoing, while assuring residents that the government remains committed to rescuing the remaining victims and bringing the perpetrators to justice.

Security has since been reinforced in the affected area as search operations continue.

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Midnight Massacre: Gunmen Wipe Out Pastor, Entire Family in Plateau

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Plateau set to clear backlog of N18bn gratuities of retired civil servants

Residents of Gako Village in Riyom Local Government Area of Plateau State were thrown into mourning following a deadly midnight attack that claimed the lives of a pastor and his entire family.

The victims, identified as Rev. Ayuba Choji, his wife Chundung Ayuba, and their two children, Cyril and Endurance Ayuba, were reportedly killed when suspected gunmen stormed the community at about 11 p.m. on Sunday.

Eyewitnesses said the assailants opened fire indiscriminately, forcing residents to flee for safety.

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A community member, Martha Dalyop, described the attack as terrifying, noting that the gunmen invaded the village under the cover of darkness and shot sporadically.

She lamented that repeated attacks in the area have left villagers living in constant fear, with many unable to sleep in their homes or access their farms.

Confirming the incident, the publicity secretary of the Berom Youths Moulder Association, Rwang Tengwong, said the latest assault reflects a troubling pattern in the operations of the attackers.

According to him, the gunmen often split into groups during attacks, with some targeting residents, others destroying farmlands, and another group blocking roads to prevent escape or intervention.

Tengwong further revealed that within the past 48 hours, large portions of farmland in Kassa, Barkin Ladi Local Government Area, were destroyed by gunmen.

Crops such as cabbage, hot pepper, and maize were affected, compounding the hardship faced by farmers in the region.

The latest killings have heightened tension across Riyom and neighbouring Barkin Ladi communities, with residents calling on security agencies and government authorities to urgently step up efforts to curb the persistent violence and protect lives and livelihoods.

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