No fewer than 23 oil blocks managed by both international and local oil companies, which are under crude oil Production Sharing Contracts with the Nigerian National Petroleum Company Limited, failed to produce crude or were inactive, the Federal Government has said.

It disclosed this in the latest Oil and Gas Industry Report for 2021 released by the Nigeria Extractive Industries Transparency Initiative, an agency of the Federal Government. It stated that the blocks failed to produce crude in the year under review.

PSC is an arrangement or contract where the contracted oil company undertakes to fund operations to explore, develop and produce petroleum within a concession area, under an Oil Prospecting License and for an agreed number of years.

If the effort is successful, the company will be subject to pay Petroleum Profit Tax, royalty and other bonuses/levies to the government. The company is entitled to recover its costs, in-kind, through what is known as ‘Cost Oil’.

The company also pays PPT and royalty in-kind, through the NNPC’s arrangement of lifting of crude oil and gas for tax, royalty and share of profit oil (usually shared in a predetermined ratio), for sale and remittance to designated accounts.

The account could be a Federal Inland Revenue Service (tax) account or DPR (now NUPRC) account (royalty), while proceeds from the sale of profit oil are remitted directly to the Federation Account.

PSC frees the government from financial burden since the company bears the cost of exploration and production.

An analysis of the latest NEITI report by The PUNCH on Tuesday, indicated that in 2021, 12 of the PSC oil blocks made production, while 17 blocks did not produce.

The report showed that there were also six inactive blocks, bringing the total number of both inactive oil blocks and those that did not produce crude during the review period to 26.

Some of the PSC contractors that did not produce crude from selected blocks included Esso E&P, Nigerian Agip Exploration, Shell Nigeria Exploration and Production Company, Texaco Nigeria Outer Shelf Limited, Star Deep Water Petroleum Limited, Statoil Nigeria Limited.

Others included Newcross Petroleum Limited, Sahara Energy Exploration and Production Limited, Conoil Producing Limited, Continental Oil and Gas Limited, Enageed Resources Limited, Nig-Del United OIl Company Limited, Sterling Oil Exploration and Energy Production Company Limited, among others.

The contractors managing the six inactive PSC blocks included GEC Petroleum Development Company Limited, Nigerian Agip Oil Company, Monipulo Limited, and Esso Exploration and Production Limited.

Commenting further on the development, NEITI said, “The following were the observations on production from PSC blocks In 2021: Only 12 (34 per cent) of the PSC blocks recorded production, while 23 other blocks, representing 66 per cent of total numbers of PSC blocks, did not produce.

“Total production from the PSCs, which was 242.96 million barrels, represents 42.92 per cent of total production of the 566.13 million barrels.”

On the implication of this, the agency said, “The PSC arrangements, which contributed highest to the total production volumes, operated only 34 per cent of the total allocated blocks.”

It recommended that there was the need for the Nigeria Upstream Petroleum Regulatory Commission, and NNPC Ltd to speedily review the technical, operational and other constraints limiting production from the idle PSC blocks with the view of optimising production from the PSC arrangements.

“Where these issues cannot be resolved, consider revocation of licenses and subsequent allocation to other interested parties,” the Federal Government agency stated.

NEITI, however, captured the responses from NNPCL as regards the development, as it stated that the national oil firm explained that “PSC blocks transit from exploration/appraisal phase to production overtime.”

It stated that the oil firm also noted that “some of the blocks are still at award status as some contractors may not have come forward for budget/work programmes due to various reasons from regulatory to business operations’ considerations.

“We (NNPCL) are hopeful that about two to three blocks will soon attain production status.”

The Federal Government partners indigenous and foreign oil firms to explore and produce Nigeria’s crude, due to the high technology required for these services, and PSC is one of such major partnerships.

Peoples Democratic Party (PDP) chieftain, Dele Momodu, has faulted former Senator, Shehu Sani, over a remark that the opposition party gave President Bola Tinubu, the trophy during the 2023 election.

Naija News reports that Sani, in a social media post, said the outcome of Tinubu’s academic record from Chicago State University (CSU) has no effect in unseating him from Aso Rock; instead, it is enough valid votes that can upturn the election.

He noted that issues of Tinubu’s moral credentials ought to have been fought before the election, adding the PDP fought themselves during the last election, which gave victory to the ruling party.

Reacting to the post, Dele Momodu disagreed with the former Senator, saying the 2023 election was not different from those of 1979 and 1983, stressing it was the worst election in the country’s history.

The journalist noted that APC had its crisis, but the PDP case was different due to the daily press conferences of the minister of the Federal Capital Territory, Nyesom Wike, which also affected his co-conspirators.

He said, “I wish to correct only one of your dangerous postulations here, as it may pollute the minds and kill the souls of some unwary Nigerians who may be hypnotized into believing that you’re an authority on Nigeria’s political history. This will be a tragedy. Nothing happened in the 2023 Presidential election that departed largely from those of 1979 and 1983. In the earlier elections, we had very popular iconic candidates from the South, Chief Obafemi Awolowo, from the South West, and Dr Nnamdi Azikiwe, from the South East, just like we had Asiwaju Bola Ahmed Tinubu, from the South West, and Mr Peter Obi, from the South East, in the “inconclusive” 2023 election.

“The dark horse in the earlier electons was Alhaji Shehu Shagari, from the North West Region, just like we currently have Alhaji Atiku Abubakar, a seasoned politician and business colossus, from the North East. We had a dominant figure, Malam Aminu Kano from Kano, just like we had Senator Rabiu Musa Kwankwaso, at this present moment. The scenario is quite similar and almost surreal in its natural spread. Now, we all know that Mathematically, to be successful, each candidate must lock down minimum of four regions. In fact, Tinubu was the worse hit as Peter Obi dominated the Southern hemisphere, while Tinubu managed to struggle along in the South West and Atiku Abubakar picked his mandatory 25 percent from some states in the South, as awarded by the almighty INEC. As at the time of this last election, Buhari had virtually collapsed the nation and the unruly APC apparatchiks were openly attacking themselves and firing salvos at even the President. Tinubu personally supervised the open rebellion against Buhari, and was ably assisted by Governor Nasir el Rufai.

“Why then is our Comrade Shehu Sani trying to give the impression that only PDP had crises in its fold, when APC was the original “FUJI HOUSE OF COMMOTION.” The only reason PDP appeared bad was because of the ubiquitous presence of Governor Nyesom Wike who had too much of Rivers money to burn on his vengeful mission, via daily press conferences. At the end of the day, three of the co-conspirators burnt themselves to ashes… Is it not curious that in the aforementioned scenario, Tinubu, a Southerner, suddenly became the dominant figure in the long-suffering Northern regions where Atiku Abubakar comes from. I’m reasonably convinced that APC merely resorted to self-help, under the avuncular last minute decision by, and support from, Buhari and company. Where else except Nigeria that a President of a country will vote and openly, and illegally, display his ballot paper to reveal who he voted for, thereby sending subliminal messages to very powerful agencies of state!!”

The federal government says it has set up a committee to investigate a wide range of issues that have caused lingering crisis within the Nigeria Social Insurance Trust Fund (NSITF) and find a lasting solution to the issues.

Minister of Labour and Employment, Simon Lalong, who disclosed this at the NSITF headquarters, Abuja on Tuesday, confirmed that within the short period of time he has spent in office as minister, he has received a lot of petitions.

Lalong also said he never knew an agency like NSITF existed in the country, not until he was appointed a minister, adding that he had taken a look at all the petitions submitted to his office.

Recall how the Independent Corrupt Practices and other Related Offences Commission (ICPC) invited some top officials of the NSITF for questioning over gratuity payment of N47m to the Managing Director of the Fund, Mrs Maureen Allagoa.

In a letter dated 14th September, 2023, with reference number ICPC/SSD/TB/197/2023 and directed to the Managing Director of the Fund, those invited include Head of Administration Department, Head of Finance and Investment Department as well as Head of Audit and Inspectorate Department.

Speaking on the development, Lalong said he was aware of different issues that arose from the Fund, particularly the issue of how the MD paid herself, how she was queried by the ministry and how she refunded the money when it became public knowledge.

“Yes, we saw achievements. We also saw a lot of complaints. A lot of complaints came from this agency. And that was why we all came up to look at it first hand and to see how to address some of these issues. There is no agency that has no problem.

“There’s no ministry that has no problem, but if you have problems, you look at ways of addressing some of these problems, so that you can move forward. You may want to step beyond your bounds because you want to achieve beyond that bounds. That is my prayer for NSITF today.

“We are here to look at them, it is not to say we are here to open up opportunity to collect grievances again. I want to assure you that those that came to me both formally and informally, I am aware. Just like I told you the other time, there is no petition that comes to me that I don’t look at it. I look at it and I will address it. Right now, I’ve addressed all of them.

“It is not only in the interest of the nation, but it’s also in your own interest, because you are given responsibilities and those responsibilities given to you can be accessed. Who knows? Tomorrow, the next Minister of Labour and Employment may come from NSITF. That’s why we are here today.

“As a way forward, I quickly set up a committee and that committee I’m going to inaugurate tomorrow to handle all these, summarize them and bring up to me,” the minister said.

The minister stated that people outside only know the ministry for settling labour disputes including averting strike actions labour unions might want to embark on.

He said, “In the whole of outside, people think in the ministry, it is just to settle disputes between workers, and yes, we have been baptised with one. That was the withdrawal of the subsidy. Of course, that took the attention of the nation, and gratefully, that was resolved yesterday.

“Everybody was thinking that would be the mother of all strikes. I must say to that to the cooperation of the labour leaders, Nigeria is moving forward, moving forward.

“Back to the ministry, we gave opportunity for briefings and each agency, all the agencies also came on their own but at the end of the day after collections and summary of all, we realised that this is one big ministry.

“For me, like I said, that time, I never knew about NSITF until I became a Minister of Labour and Employment. Out of all the agencies, I’m not saying others are not important, but there is one that we must focus on, if we want to succeed in that ministry. That was why we give this priority to take this visit to your agency. I thank you very much for the welcome.”

There were clear indications on why the All Progressives Congress could not save the embattled Ondo state deputy governor, Lucky Aiyedatiwa.

This was evident when the Ondo State House of Assembly declared on Tuesday, October 3, that Aiyedatiwa had failed to respond to a notice served on him on September 25 concerning allegations of gross misconduct.

Speaker of the Assembly, Olamide Oladiji, revealed during the plenary that the notice had been received on behalf of Aiyedatiwa by his chief protocol officer.

Following a motion by the Majority Leader, Oluwole Ogunmolasuyi, concerning the Ondo State Impeachment Panel Procedure Rules, it was proposed that the panel should be constituted by the Chief Judge of the state.

The motion was seconded by Felix Afe (Akoko North West 2-PDP).

The speaker stated that the seven days allowed for Aiyedatiwa to respond to the allegations as stipulated by the constitution has lapsed.

He said that the resolution that the deputy governor be duly served the notice of allegations signed by 11 lawmakers was in line with Section 188 of the Nigerian Constitution.

Oladiji noted: “Concerted efforts were made to serve the Notice on the deputy governor, who for some time was not available for the service, prompting the House to approach the court for a substituted service on the deputy governor.

“On 25th of September, a substituted service of the Notice of Allegations was made on the deputy governor duly signed by more than one-third of Honourable Members of the House as required by the Constitution in Section 188 Sub-section 2.”

He, therefore directed Chief Judge of the State, Justice Olusegun Odusola, to immediately set up a seven-man panel to investigate Aiyedatiwa on the allegations levelled against him.

He stated: “Distinguished colleagues, Section 188 of the Constitution states further that the deputy governor has 7 days within which to reply to the allegations levelled against him.

“The Constitution states further that within seven days of the passing of a motion under the foregoing provisions of this section, the Chief Judge of the state shall at the request of the Speaker of the House of Assembly appoint a panel of seven persons.

“Distinguished colleagues, I, therefore, wish to seek your opinion to direct the Chief Judge of Ondo State, Hon. Justice Olusegun Odusola, to in line with this section of the Constitution, set up a seven-man panel to investigate the deputy governor on the allegations levelled against him.”

A total of 23 out of 26 members at the plenary session supported the speaker through a voice vote.

Some Ondo APC leaders who spoke to our reporter said the move by the national body of the APC to save Aiyedatiwa from being impeached would fail because all APC stakeholders in the state have agreed that Aiyedatiwa must go.

The state chairman of the Ondo APC, Ade Adetimehin, said the state chapter would work with the national body for possible resolution of the impasse.

A source said many aides who sided with Aiyedatiwa especially those already penciled to be Deputy Governor, Chief of Staff, SSG would soon be sacked.