The advent of the COVID-19 pandemic has not only revealed the poor state of infrastructure and facilities in the health sector of Nigeria but has also revealed the reality of the dilapidation and poor funding of the education sector. Aside from the health sector, no other area has suffered the impact of COVID-19 like education.
While many countries have easily adapted and switched to virtual classes, in Nigeria, it is not only difficult but also impossible to open our schools virtually due to lack of facilities necessary to operate virtual classes, poor provision of internet network, unstable power supply, high cost of mobile data and other challenges. Many children were out of school even before the pandemic, and even more have dropped out due to the pandemic. CODE’s research on the impact of COVID on Girls’ Education revealed that a significant number of guardians and parents in Nigeria’s North-East were certain that their girls will not be returning to school.
The learn from home teaching method introduced by the Nigerian Ministry of Education to teach through radio and television is not yielding the desired results. The electricity supply in the nation is below average and the majority of Nigerians are living below the poverty line and cannot afford televisions or radios.
The need to Protect Education Budgets
The need to protect education budgets has never been more urgent. Records show that for the past ten years, the Nigerian education sector allocation has not reached the UNESCO recommended 10 to 15% of budget in developing countries. This has led to teachers’ strikes at all levels of education in Nigeria, with other calamities that have reduced the once proud education sector into a puppet and a complete laughing stock in international education rating standards.
In Nigeria, basic education is financed through concurrent financing from the three tiers of government—Federal, State and Local Government Authority, with distinct financing mandates and responsibilities for each tier. The Federal Government provides 50% and the State and local government as 30% and 20% respectively.
As a result, state investment in education is heavily reliant on the federal account allocation, making its educational goals susceptible to challenges of national resource mobilization (COVID-19, International Oil Price Fluctuation) and expenditure management.
The Federal Government of Nigeria allocated the sum of 568 billion Naira (approx. USD 1.5 billion) to education in 2020. However as a result of COVID this allocation was reduced to 509 billion Naira (approx. USD 1.34 billion). This has pressured public schools into dismissing hundreds of temporary staff members, and skyrocketed student school fees in various institutions, thereby increasing the inequality in education.
In addition, the attacks on education facilities in Northeast Nigeria have destroyed infrastructure worth billions of Naira and resulted in the deaths of countless students and teachers. This destruction requires funding to rebuild and to employ more teachers, as well as strengthen the security to assure the safety of teachers and learners.
Nigeria’s Debt Status
As of March 31, 2020, Nigeria’s debt was at 28.6 trillion Naira (USD79.3 billion). As the country addresses this debt burden, funding to social sectors, especially education, is likely to pay the price. Lack of support for education will affect wider development issues including health, poverty and economic growth, as well as the empowerment of women and young people. This will thereby have a lasting impact on the nation’s economy, safety, literacy and equality. Education provides the platform to improve the quality of life and continuous regeneration of knowledge, capacity and skill in the society for continuous productivity and development.
Recommendation
Now is the time for education leaders to step up their investment in education and increase enrollment to schools, especially for girls. All stakeholders must double their efforts to sustain the recorded achievement and contribute to the realization of SDG 4.
To increase enrolment and improve the security of students, we must ensure adequate financing for education and protect education budgets during the COVID-19 pandemic and beyond. Education must be accessible to all without any form of discrimination.
Connected Development’s (CODE) Follow the Money initiative, with the support of the John D. and Catherine T. MacArthur Foundation, helped improve the delivery of $1.5 million of education funds in Kaduna state in Nigeria, under the universal basic education spend. The project engaged communities and kept them informed on government projects and resources, and it helped them advocate for accountability with contractors and officials. According to a case study and documentary video on the initiative, Follow the Money improved access to education, strengthened accountability, and resulted in delivery of public goods across sectors to neglected communities. A comic strip that pairs with the study tells the story of a family, local media advocacy, and community meetings ultimately achieving better conditions at their school.
While communities are entitled to many services, often the delivery can be hampered by corruption. MacArthur grantee CODE helps give communities the tools to advocate for their priorities and find achievable targets for change. The case study shares take-aways for similar contexts, including supporting local leaders, focusing on near-term successes before long-term change, using holistic monitoring to see multiple measures of success.
Hamzat Lawal tops finalist for World Leading Sustainability Award in Sweden
Anti-corruption activist and Founder of Follow The Money, Hamzat Lawal, has emerged a finalist in the Sweden WIN WIN Gothenburg Sustainability Award, alongside Icelandic whistleblower, Jóhannes Stefánsson, Integrity Watch Afghanistan (IWA), and Italy’s lead prosecutor, Nicola Gratteri.
Lawal and the other finalists were selected “after the jury carefully reviewed 64 nominations from 34 countries around the world, who actively oppose corruption and thus strengthen our opportunities for a sustainable future,” Chairperson of the WIN WIN award jury Emma Dalvag, announced.
USD4 billion is lost every year to corruption across the globe, an enormous figure, which can be compared with the USD2.9 billion financial gap that needs to be filled in order for the world to achieve the UN Sustainable Development Goals by 2030. Fighting corruption often involves risks and requires courage. We are very proud to present a wide range of finalists who, in different ways and in different parts of the world, fight for a fairer and more sustainable world, Dalvag added.”
Expressing delight about the recognition, Hamzat Lawal says that“the work of Follow The Money is tackling corruption in government’s funding and ensuring that everyone, even in the remote areas, has equal access to basic needs. More importantly, during this COVID pandemic where our lives have been changed and altered, building back better should be the ultimate goal. I am honoured that the Gothenburg Sustainability Award recognises our efforts in this regard.”
In the past few months, the world-leading sustainability award has sought nominations from individuals and organisations that actively combat corruption and thereby improve the opportunities for the world’s countries to achieve the UN’s Sustainable Development Goals.
Hamzat Lawal founded Follow The Money, a Pan-African grassroots data-driven movement and leads a team of technology & innovation driven campaigners to amplify the voices of marginalized grassroots communities in promoting accountability as regards the utilization of public funds focusing on specific communities across Africa. His Follow The Money initiative won the United Nations Sustainable Development Goals Mobilizer 2019 Award and the Council of Europe’s 2019 Democracy Innovation Award. Lawal was also recognised as one of the world’s 100 most influential people in digital government by Apolitical in 2018 and 2019. He has also been ranked as one of the 100 most influential Africans along with Amina J. Mohammed, Aliko Dangote and Chimamanda Adichie.
The Chief Executive, my colleague, Mukhtar and I on a work trip.
I remember being asked during my interview for the position of an Executive Assistant to the Chief Executive Officer of Connected Development; “Can you be an assistant to a sedulous, diligent and functional boss?’ Being the self assured person I am, I thought to myself ‘how difficult can it be?’ So I answered YES! With my full chest. Boy, did I know what was in front of me.
My first days at CODE were anxiety and insha allah. As a reserved person, being around mostly boisterous, energetic and passionate young people was overwhelming. At some point, I felt like a misfit, greatly judged for my reserved nature, which caused more anxiety and detachment on my part.
I remember saying to myself “ these guys missed out on a key requirement of being a part of the organisation during my interview; outgoing”. I’m not going to lie, I struggled trying to be up to par. It was not that I was incapable, but that I lacked information.
My past experiences helped with my surface knowledge of the NGO sector, but this one was different. At CODE, I began to consciously understanding my colleagues as people who could help me relate easier with them, understanding my boss as a person, and his role as the Chief Executive, the organization’s mission; integrating all three to better understand my role. Doing this created a pattern in my mind that eased my anxiety and detachment.
I’ve been 4 months but I can tell CODE is an organization that believes highly in the resourcefulness of people. Investing in its people is one of her core values and it is truly admirable. Our work, though challenging, allows individuals to freely express themselves; no idea is too silly to be brought to the table. This is an encouraging work culture because staff feel acknowledged and valued.
Do I still feel overwhelmed? Yes, sometimes. Do I understand the system better? Yes, faster than I envisaged. Am I less reserved? Not exactly. Introversion is my inherent nature, it is not a disability and as a regard does not limit my ability to work with the team, except I work a little more quietly. LOL!
CODE is a youth-led Organisation with vibrant a team, irrespective backgrounds, experiences and personalities, who are willing and committed to contributing their own part to achieving the mission of the organisation.
Overall, my experience is one with no destination. Be it four months or two years, my CODEd experience is one that will definitely serve a continual purpose. My boss once told me to “always explore the best of everything life offers you.” That is exactly what I’m doing; EXPLORING!
Impact Assessment: Tracking N569M UBE Spending in Kaduna State
In an effort to address the increasing number of out-of-school children in Nigeria and poor citizen’s participation in government spending, Follow The Money (FTM), recently completed the 3-year project, of Tracking UBE Spending in Kaduna State. FTM ensured that 569 million naira Universal Basic Education funds earmarked for the construction and rehabilitation of facilities in 23 basic schools in Kaduna State was effectively expended. The initiative also enhanced open government in basic education spending.
The project which was supported by the John D and Catherine T. MacArthur Foundation under its ON Nigeria project, monitored the implementation of school projects in Kudan, Kajuru, Zangon Kataf and Jema’a Local Government Areas (LGA) of the State, and strengthened the capacity of School Monitoring Teams (SMTs) to effectively provide oversight on basic education spending in the state.
More highlights:
Tracked NGN 569,579,737.83 (USD 1.5 million)
Strengthened the capacity of school monitoring agents
Monitored project implementation across 23 schools in 20 communities.
Presented the needs assessment report conducted for 609 schools in Kaduna to the Acting Governor of Kaduna, Dr. Balarabe.Channeled project implementation reports to Kaduna SUBEB (Kad-SUBEB) for redressal.
Enhanced citizens’ engagement in basic education spending
Over 200,000 lives impacted and 1.4 million media reach.
Many cases of SGBV are carried out in a household where children are supposed to feel safe and secure, however, home for many children is far from safe.
The novel Coronavirus – COVID-19, which was first detected in China in late 2019 and has since been declared a pandemic threatens to become one of the most difficult health challenges faced by countries around the world in recent times. The full impact of COVID-19 is not yet known but, what is clear is the urgent need for strategic civic engagement particularly in highly populated countries like Nigeria, where public healthcare systems and reliable sanitary infrastructure capable of curtailing the heightened impact of COVID-19 remains abysmal.
CODE has now developed a Policy Brief that addresses transparency and accountability issues on COVID Funds implementation in Nigeria. Click here to view
Few of the notable deficiencies of the Violence Against Persons Prohibition (VAPP) Act of 2015 are its inability to criminalise spousal rape and provide adequate protection to persons living with disabilities – even though this was (sparsely) addressed by the Discrimination Against Persons with Disabilities (Prohibition) Act of 2018. Sadly, both laws are inoperable at the subnational level without first being enacted by the Houses of Assembly of various states.
On the 2nd and 3rd of February, 2021, I was in Kano state to implement a project sponsored by the Canadian High Commission in Nigeria. Our team was to train 30 young women and men gender-activists on advocacy tools towards ending gender-based violence through the enactment and/or adoption of the provisions of a Violence Against Persons Prohibition (VAPP) Law in Kano state.
A story was told of two young girls below the age of 14 who were abused by an affluent man in their neighbourhood. The man is attempting to bribe the father of these 2 underage girls with N500,000 so that the court case can be terminated. Another story was told of a woman who was prematurely forced into labor and childbirth due to spousal battery. A lady told her story of how she had to quit her dream job because of sexual harassment from her boss at the workplace. Another story was told of an underage girl who was gang-raped by known men and who used stigma to pressure her into silence. There are countless stories of forced child labour and prostitution and child marriages.
You see, these are what one may describe as a “tip of the iceberg”; just some troubling stories of the ordeals and violence women and girls go through in Kano state and across Nigeria as a result of inter alia inadequate or lack of effective policy and institutional frameworks that carter for the actualisation of women’s right. In seeking for justice, I discovered that many women or people have preferred to lay their complaints to the Islamic Police: Hisbah Corp which has no legal power to prosecute rape cases and where matters are often settled through mere mediation rather than the Nigeria Police Force which has the broad statutory powers to prosecute virtually all forms of criminal cases, subject to to powers of the Attorney General.
This 2-day workshop I learnt about young female activists; brave and resilient women; some victims with horrific stories of sexual and gender-based violence – and many of whom have been denied justice deliberately and otherwise.
The institutional performance of State agencies that are responsible for ending gender-based violence and protecting women’s rights was rated poor. “The Police have no shelters for victims and would not want to be burdened with such cases. There have also been reports of police officers taking advantage of survivors and women in disadvantaged situations,” a participant at the training noted. Another woman emphasized that police officers often blame the victims or pressure them to go and settle their “domestic affair”. These and many more engenders the distrust and widens the divide between women, victims and the Nigeria Police Force and their ability to access justice. This distrust is being capitalised on by the Hisbah, with its prosecutorial controversies and limited role in criminal justice on the broader scale.
In Kano state, there is only one sexual assault referral centre (SARC) which “ideally” is supposed to function as shelter, forensic evidence extraction point (to be used in trial) and carter for the general rehabilitation needs of victims of sexual violence. This centre is grossly understaffed, under-equipped and underfunded. Kano is the 20th largest state by land mass; perhaps, the second most populous state after Lagos state and has 44 local government areas and hundreds of villages in remote areas – how can women and victims living in marginalised, grassroots communities access the services of the SARC when the facility can barely carter for the victims within its immediate sphere of operation.
Just like the Anti-Domestic Violence Law of Lagos State of 2007, the VAPP Act also provides for the protection of survivors of domestic violence; provides them with opportunity to acquire skills in any vocation and access micro credit facilities. The VAPP Act ultimately seeks to prohibits many forms of violence on persons in private and public life and its domestication in Kano state has been a subject of immense controversy – and have inadvertently faced setbacks in its legislative enactment – as some quarters have linked the law to the realisation of LGBTQ rights in the state or have simply cited cultural or religious reasons as to the hitch – meanwhile, women continue to be susceptible to all forms of abuse and violence within the state with little or no recourse.
The socio-legal debate that have been generated due to the VAPP Law and its adaptation to local context has led relevant government and private stakeholders to reach a middle ground which is allegedly the extraction of notable “contextually-agreeable” provisions of the VAPP Act and infusion into the Penal Code; a harmonisation exercise that has subjected the Penal Code to an amendment process and which would hopefully lead to the manifestation a more inclusive Penal Code Law that broadens the protection and realisation of women’s right in the state. May I state here that I’m sceptical about the outcome of this process – “when” it eventually arrives.
Furthermore, on December 4th, 2018, the Kano state Governor signed the “Law for Persons with Disability”. However, unlike the federal version, the state law didn’t provide for a Commission that would inter alia represent and further the causes of persons living with disabilities (PLWD); did not provide for sanctions in cases where the rights of PLWD are infringed upon; did not provide a transitional period where all public buildings must provide PLWD-friendly entry and access points; did not provide affirmative action in public employment for PLWD, and so forth. All these policy gaps and many more exist for a group often neglected by society, who are more vulnerable to all forms of violence and abuse, and whose access to justice is much more cumbersome. In fact, the law can simply be deemed a theoretical declaration of rights, perhaps, to hastily fulfill promises or quell international or local pressures. The law and its current amendment process is piloted by the Office of the Secretary to the State Government. While this may be okay at the interim, for sustainability and inclusivity sake, this cause and interests should be coordinated by a ministry of government in charge of social development or special duties.
In conclusion, this article has attempted to analyse and portray policy gaps that exist and suggested ideas towards the protection of vulnerable groups and their rights thereof in Kano state, proffering solutions below. While I support the enactment and domestication of laws to suit local contexts in line with our federal system of governance, these legal and legislative adaptations must not be in aberration of fairness, equity and comprehensive multi-stakeholder engagement, foremost of which are Women groups, Community based groups, Civil Society Organisations and PLWD groups.
Here are some policy recommendations which may be considered and adopted towards ending all forms of violence against women, girls and PLWD in Kano state and across Nigeria:
The state government should enact and implement the VAPP Law and/or adopt a utilitarian approach towards the harmonisation of the VAPP Act and Penal Code suitable for the local context, reached through broad, multi-stakeholder and cross-sectoral consultations.
The government should enact and implement the Child Rights Law and/or the Child Protection bill.
There should be a precise Action Plan to End Gender Based Violence within a definite time frame in form of a policy document, highlighting the role of various stakeholders, amongst other things.
There must be gender responsive budgeting in appropriation laws, especially through the budget of the Ministry of Health and/or Women Affairs.
There must be establishment and sustainable funding, equipping and professional staffing of more Sexual Assault Referral Centres across the state through annual budgets of the Ministry of Health
Implementation of a robust database of sexual perpetrators.
Increased sensitization on mainstreaming gender sensitivity and equality in public and private life embarked especially by public institutions as a matter of policy.
There should be enhanced special desks at police stations manned by trained, empathetic professionals; and establishment of special courts for sexual related offences to protect identities and ensure speedy, justiciable trials.
There must be an amendment of the Persons with Disabilities Law of Kano state to provide comprehensive protection of PLWD by addressing the issues and policy gaps raised in this article.
Note: This article is not an attack on the institutions of Kano state and should be read with objectivity and with the analytical and solution-driven lens of the writer towards ending violence on women and girls in Kano state and across the country.
On the 23rd of September 2020, the women of Obodo-Ugwa, Delta State, took their seats comfortably for the first time at the Community Development Committee (CDC) meeting where issues of rural governance and development were deliberated.
Up until that day, men dominated these meetings and made social & economic decisions on behalf of women. The culture and tradition forbade women from joining meetings that men presided over. If women had concerns, they were expected to tell their husbands or male representatives in the household. Discussing these concerns at community development meetings now comes at the discretion of the male representatives, otherwise women’s opinions and challenges never saw the light of day.
Profiling Obodo-Ugwa
Obodo Ugwa Ogume is a small village with a population of about 4000 people in Ndokwa West Local Government Area of Delta State that produces oil, making it an attraction to Oil and Gas companies. Since it is an oil exploration site, it goes without saying that it’s also a location where gas is flared—a menace that has heightened environmental degradation, caused ill health, poisoned water, polluted farm crops and worse, adversely impacted the fragile phenomenon of the village.
Not only is the livelihood of villagers thwarted but despite being a huge contributor to the Nigerian Economy and an enricher of the pockets of Oil & Gas executives, Obodo- Ugwa has also been denied structural development.
The people of Obodo-Ugwa can be classified as marginalised, vulnerable people whose voices have been ignored and their human rights violated.
Conflict & Fragility Issues: How OXFAM and CODE are changing the status quo
OXFAM Nigeria and Connected Development, two not-for-profit Organisations, kicked-off a Conflict and Fragility Project in the Oil region of Delta State to advocate for the responsiveness of Oil companies to host communities. The campaign addressed the risks associated with the lack of adherence to business principles of operations by actors in the Oil & Gas value chain while engaging with host communities in the Niger-Delta. This often results in conflict and fragility issues.
The campaign envisioned an improved adherence to business principles as contained in the United Nations Guiding Principles [UNGP]. This adherence seeks to improve human rights practices and corporate social responsibility of operators in the oil and gas sector towards their host communities. It urges commodity traders to operate in an accountable, transparent and human-rights-sensitive manner. This can significantly ensure that a mutually beneficial relationship between oil firms and host communities exists.
One of the outcomes of the campaign was to stimulate gender inclusion in local extractive governance to spur an inclusive and effective community development. CODE & OXFAM, known for their advancement of the causes of women’s rights, accelerated action to advocate for gender inclusion in Obodo-Ugwa.
Women Participation and Community Development
Things are starting to look up for Obodo-Ugwa. OXFAM and CODE, on different occasions, organised town hall meetings and advocacy calls where key stakeholders from the Oil & Gas sector such as regulators and oil explorers and community chiefs and leaders deliberated on a way forward.
Recognising the importance of promoting inclusiveness, CODE and OXFAM further intensified efforts to advocate gender inclusion and gender-responsive public services in the community so that women can have a place in local governance structures. Gender inclusion and women participation in communities should be beyond primitive gender role of caring for just the home and family. Women should be empowered to actively participate in politics, economy, social and cultural aspects of life. For women to be able to fully exercise their human rights, gender perspectives have to be mainstreamed in all inclusive social policies.
2 weeks before the inauguration of a new community development committee, CODE’s Programs Associate, Onyekachi Onuoha received a call from the Chairman of the CDC, inviting CODE to witness the result of its advocacy. Community elders now seek to include women in CDC meetings and have women take up executive roles.
Here we are at Obodo-Ugwa witnessing a first-of-its-kind where there is a female vice president of the CDC and a female Finance head. The recognition of women’s participation will have far-reaching impacts in building the community into an inclusive society.
Although traditional norms and value systems in rural areas especially are still limiting the participation of women in community development, CODE, during its advocacy activities in grassroots communities often mainstreams gender-responsiveness and gender equality in its interactions and engagements to ensure communities are informed of the importance of including women in decision-making processes.
Testimonies
“Women do not sit with men at village meetings except when they are summoned. This is a dream come true! Seeing my fellow women as not just members but executives on the Community Development Committee gives me joy! Ehn ehn, now we can say what our needs are without discussing first with our husbands. The village market that they are building was because women complained of long-distance travel to buy food items. I am glad this happened in my time.,” Obodo Ugwa resident, Veronica Obi, beamed.
“This is the first time in the history of the Obodo Ugwa CDC that women will be allowed to participate- not only that- quantum progress has been recorded because 3 women were also added to the CDC executive board- a vice president, a women leader and the CDC Secretary.” – CDC Chairman, Anslem Oyibo.
“Women have now been given management roles. They will oversee the market building and the school completion. They get to make decisions on behalf of the village. This has never happened. I am glad to witness it.” — Community Chief, Chief Friday Okoro.
“We are happy about this development. Look around, women and men were equally represented in this committee. We now have to prove our responsibility. I have plans to request the provision of loan and grants to support women’s initiative. I hope to see that happen. There is so much we can do and conquer.” CDC Vice chairman, Patricia Oluomo stated.
Nigeria has explored oil resources for over six decades. Petroleum resources provide over 90% of Nigeria’s export revenue and has remained the largest industry of the economy in terms of revenue generation. Apparently, the indicators of the Nigerian budget are predominantly drawn from the anticipated cost of a barrel of crude oil and our production capacity. A number of laws and regulations exist in different dimensions to regulate what happens in the industry, though many of them are now very obsolete. It is interesting to note that there is no robust, comprehensive and omnibus Act in the Petroleum sector to provide the requisite regulation of the upstream, midstream and downstream sectors of the petroleum industry. This is the gap that the Petroleum Industry Bill (PIB) seeks to achieve. The Bill addresses regulatory loopholes in the industry, allowing for improved governance and regulation spectrum, improved exploration environment also beneficial to host communities, infrastructural development of these communities, and enhanced fiscal returns, among others.
Onyekachi Onuoha during a stakeholders meeting to the Rivers State Ministry of Energy & Natural Resources
The passage of the PIB is expected to drive reforms by strengthening governance institutions, establish a strong regulatory framework, ensure transparency and accountability in oil and gas resource management and promote sustainable development. Amazingly, the PIB has been one of the longest existing bills in the Nigerian legislative history as it has been an ongoing conversation in the last 20 years. In the 8th national Assembly the bill was disaggregated into four bills. Three of the four were not passed by the National Assembly while only one which was the Petroleum Industry Governance Bill was passed but denied assent by President Muhammadu Buhari.
The long delay in the passage of the bill is caused by the vested interest of various stakeholders including the regulators (powers and responsibility), operators and oil marketers (Royalty and fiscal issues), host and impacted communities (environmental issues, developmental funding, etc). It must be noted that these differences cannot be holistically settled, a stakeholder parley is essential for finding a common ground. A further delay of the passage of the PIB is far from being an option as the Nigeria Extractive Industries Transparency Initiative (NEITI) had stated that Nigeria recorded losses to the tune of $200 billion for failing to pass the bill.
In view of the overarching benefits of the bill, a number of civil society organizations including Connected Development (CODE), FOSTER, OXFAM, BudgIT, CISLAC, Centre LSD among others have increased advocacy for the reintroduction of the bill and recently the bill has now been reintroduced into the national Assembly as an executive bill following this advocacy that seeks a participatory and speedy process. In order to make the process more participatory, a public hearing on the bill was scheduled for the 27th and 28th of January, 2021 for cogent inputs by all stakeholder.
In the midst of the expectation of passage and assent to the bill, there are clear observations;
The Expectations of the Petroleum Industry Bill
The Petroleum Industry Bill is expected to repeal upto 17 Acts and provide a new framework for natural resource governance especially in the petroleum industry. The bill proposes the creation of the Nigeria Upstream Regulatory Commission (The Commission) which will act as the regulator of the upstream sector and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (The Authority) functioning as the regulator of the midstream and downstream sectors of the petroleum industry. It is anticipated that the creation of the Commission and the Authority will provide better enforcement of standards to streamline inter agencies’ responsibility.
The recommended replacement of NNPC with NNPC Limited seems to be a good step to make it more efficient strictly as an operator with no form of regulatory role directly or indirectly. The introduction of Environmental Remediation Fund as a condition for the grant of license and prior to the approval of environmental Management plan is very commendable, though the approach is not inclusive of host communities.
The prohibition of flaring or venting of natural gas with fines not subject to tax deduction appear attractive to discourage gas flaring however there are stipulated exceptions for condoling gas flaring. The Host Community Development Trust requires oil operators (settlers) to contribute 2.5% of their actual operating expenditure yet this has been defaulted, worse, host communities have become mere spectators.
It is very interesting to note that the price fixing powers of the Minister of Petroleum Resources no longer exist under the PIB 2020 which suggests a progressive move towards full and honest deregulation of the downstream sector. The powers of the minister to grant and revoke prospecting licences and Mining Leases exercisable solely by the Minister can only be done under the PIB by the recommendation of the Commission. This has the tendency of promoting due process and forestalling corrupt practices similar to the Malabu Scandal.
Effect of the Passage of the PIB on the Petroleum Downstream Sector
The PIB will have a far reaching effect on the downstream sector.
1. The removal of the powers of the Minister of Petroleum Resources in the PIB from fixing prices of petroleum products suggests an end to at least petroleum import subsidy regime.
2. The PIB passage is likely to provide the much needed legislative framework for a compressive deregulation of the petroleum downstream sector.
3. The PIB will increase the appetite of oil marketers to invest in the digitalisation of their vital downstream assets.
4. In line with the proposed establishment of “The Authority” to take charge of the regulation of only the midstream and downstream sector, “The Authority” should be more responsive in discharging its duties and strengthening regulations.
A tour to Ogoni Land to observe adverse impact of oil exploration on the community
Concerns of the Petroleum Industry Bill
There are several concerns of the Petroleum Industry Bill which have been highlighted by various stakeholders. These areas of concerns include;
Host Community Development Trust: In establishing and registering the Trust, there is no reference at all to communities. The job of identifying who a host community is, lies with the oil company (Settlor). Why not the federal and state government? This has a potential for conflict?
The Holder (oil and Gas Company) selects members of the Board of Trustees (There is no provision or requirement for appointing locals or members of the host communities which means the lack of participation). The implication of this is that it places the power and the mandate for the development of oil producing communities in the hands of the oil companies, allowing the government to abdicate their responsibility. This could create additional grounds for conflict.
The Board of Trustees establishes a Management Committee which is required to have only one community representative who shall be a non-executive member of the management committee. This is gross under-representation for the host community
Forfeiture of contribution to the Host Community Trust Fund: Section 257 (2)- forfeiture of contribution to the Host Community Trust Fund as a result of vandalism, sabotage or other civil unrest. There should be a clause to indicate that such vandalism, sabotage or other civil unrest were caused by the host community as established by the commission. It should therefore be re-written thus;
“Where in any year, an act of vandalism, sabotage or other civil unrest caused by the host community as established by the commission which occurs that causes damage to petroleum and designated facilities or disrupts production activities within the host community, the community shall forfeit its entitlement to the extent of the cost of repairs of the damage that resulted from the activity with respect to the provisions of this Act within that financial year”.
Application of the New Fiscal regime: The new fiscal regime would not apply to the companies already in operation until the renewal of the existing Oil mining Leases (OMLs) and Oil Production Licenses (OPL) or the execution of a new one. The state of affairs in the country requires that the current licenses would be made subject to the PIB when passed rather than remaining under the obsolete PPT Act.
Host Community Needs Assessment: The holder (Oil and gas Company) carries out needs assessment of needs for communities. This is a recipe for conflict especially where there are conflicting needs. While the needs assessment is required to have an ‘environmental perspective’ the details show only interest in benefit transfers and not environmental protection.
Flare Gas Data Log: The PIB as it is, does not necessarily recommend commensurate punishment for flare gas data log offenders. It merely recommends a fine of extra $2.50(US Dollars) per 28.317 standard cubic meters for an offender who is found guilty of supplying false data or fails to supply such data. This recommended fine is by all standards marginally low.
Gas Flaring: The provision for gas flaring in the bill is still very small when compared to the impact of the offence on the environment and lives of people. This implies that the provision prefers the payment of fines to a demand to end flaring. Obviously, the operators will still prefer to flare gas and factor in the penalty as a component of their operating cost as it were.
Licence and Lease: A licence or lease may be granted under this Act only to a company incorporated and validly existing in Nigeria under the Companies and Allied Matters Act. We need to add here that; companies who sub-let such rights or contract to other non-registered companies in any of its value chain will be liable to forfeiture of their licenses.
Gas Utilisation Incentive: Companies operating in this sector should be ineligible for pioneers status incentives (PSI), which confers the benefits of a tax holiday (amongst others), the associated cost and administrative inconvenience of processing the PSI may make the Gas Utilisation Incentive (GUI) more attractive.
A tour to Ogoni Land to observe adverse impact of oil exploration on the community
CSOs must take the responsibility of critically studying the PIB to identify all the areas of concerns of all the stakeholders so that their expectations are aptly captured in the PIB and all stakeholders have commitment to the bill. Although many CSOs have worked tirelessly on the PIB and t have been stretched over the years especially because of the delay of the bill, we must find new strength; we all need to see it passed. We must stay focused and follow the bill through at the National Assembly so that we don’t sacrifice quality at the altar of speed.
The passage of the bill is a great step in the right direction for the requisite reform of the petroleum industry, however when it is passed and assented to, ensuring comprehensive implementation is imperative to take care of the governance spectrum, environmental issues and fiscal matters in the industry.
