A BOLD DECLARATION UNPRECEDENTED IN THE HISTORY OF CRUDE OIL EXPLORATION IN NIGERIA

President Bola Ahmed Tinubu's Sermon on the Mount Before the Board and Management of the Nigeria NLG Limited.

" ... for the oil and gas industry to continue to thrive, all stakeholders in the value chain, especially the host communities needed to be engaged and carried along to enable the government to build confidence and trust."

"Engaged and Carried Along." This is the most audacious, sincere, and ambitious public policy statement I've ever seen or heard from a Nigerian President on ensuring a conducive investment climate in the crude oil-producing areas of Nigeria. What the President articulated here, and I pray the Board does not equivocate on implementing it, is called SOCIAL LICENSE. And it is a step ahead of the Corporate Social Responsibility concept.

The intransigence or unhealthy politicization that encapsulates the passage of the Petroleum Industry Bill (PIB) into law for almost ten years, which culminated in the downgrade of the stipulated payment of 10% of the net profit of oil companies doing business in the Niger Delta into the Host Community Funds to 3% in the Petroleum Industry Act (PIA), was not only divisive, but totally and unequivocally counterproductive. In other words, I have my reason for celebrating Asiwaju in this bold declaration. I'm not new to this topic. Who can forget the Odi Village Massacre, authorized by one of his predecessors?

Undeniably, the doctrine of Social License is yet to get a footing in the Nigerian corporate world, especially in the energy and natural resources sector. The International Oil Companies (IOCs) and their local counterparts, given the hostile reality on the ground in the Niger Delta, seemingly do not know what the doctrine is or its application processes. It's the same level of disconnect in the mining sector.

You cannot continue to be an alien, a visitor, or a traveler in the land that is enriching your bank account with an unceasing stream of revenues and expect peace, love, and affection in return. That is not possible. You must develop corporate mechanisms to facilitate engagement and collaboration with indigenes of the host communities.

Live their life. Experience their culture. Integrate them into your corporate culture and stop feigning ignorance of the appalling scale of poverty in the surrounding communities. It's not by sharing stipends, providing scholarships, or setting up the local chiefs against the activists in the communities. It's by socioeconomic integration, within and outside of the boardroom and to the surrounding communities.

How many Lawyers or Economists, for instance, with a graduate-level background in Energy Law do you have within the management team of the NDDC or the Ministry of the Niger Delta? Who is helping or partnering with the management team to develop emerging strategies and tactics to surmount current and recurrent grievances in the host communities?

The efficiency or productive capacity of a team cannot surpass the strategic, mental, and intellectual capacity of the leadership of the team. Put that on your wall.

Anyway, The Asiwaju Declaration must not end here: THE PRESIDENT MUST BE WILLING TO HOLD THE BOARD AND MANAGEMENT OF THE NLG ACCOUNTABLE in the event of further pipeline vandalism or shortage in production or export quota. It doesn't take rocket science to appreciate the philosophy that it takes peace, a conducive environment, and an egalitarian culture to create wealth in any of the natural resources-rich communities of the world. I wish them well.

Nigeria LNG Limited

Nigeria LNG Limited

181,055 followers

181,055 followers

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The Board of Directors and Management of Nigeria LNG Limited paid a courtesy visit to the President of the Federal Republic of Nigeria, His Excellency, President Bola Ahmed Tinubu, at the Presidential Villa in Abuja.

During the visit, the Chairman of, the NLNG Board, HRM King Edmund Daukoru, CON, expressed profound gratitude to President Tinubu for his unwavering support in bolstering Nigeria's position in the global energy landscape. He acknowledged the crucial role NLNG has played in Nigeria’s economy, noting the need for government support in resolving some challenges the Company is presently facing. Speaking at the visit, the MD/CEO of Nigeria LNG Limited, Dr. Philip Mshelbila, stated that since inception, NLNG has contributed enormous revenue to the government through dividends and taxes, noting that the FIRS declared the company as the largest tax-paying company in 2022.

Mshelbila also emphasized that NLNG’s Domestic LPG (DLPG) Scheme has guaranteed LPG supply, availability, and affordability, and has also stimulated the development of different parts of the DLPG value chain in Nigeria, with 100% of produced LPG volumes from NLNG dedicated to the domestic market, supplying about 40% of Nigeria’s domestic LPG demand.

He stressed that challenges around pipeline vandalization have constrained NLNG’s production with consequent loss of revenue to the government. Besides, multiple taxation from various government agencies and the Finance Act, which is being amended yearly distorts corporate planning and puts business on the back foot, stifling investor confidence and investment opportunities in the sector.

President Tinubu, in his response, thanked NLNG for the visit and commended NLNG for its steadfast commitment to excellence and immense contributions to the GDP, acknowledging the critical role the company plays in Nigeria's economy.

Tinubu affirmed the importance of Gas not just as a transition fuel but also as the fuel for the future, assuring that the Gas Sector would get priority attention in this administration. He assured the Board that all encumbrances to the progress and development of Nigeria's industrial citizens as well as any further impediment to the business practice in the oil and gas sector would be swiftly removed.

President Tinubu emphasised that for the oil and gas industry to continue to thrive, all stakeholders in the value chain especially the host communities need to be engaged and carried along to enable the government to build confidence and trust. He urged the Board and Management of NLNG to continue to work in collaboration with the government to ensure that issues can be resolved quickly and efficiently while reiterating his administration’s commitment to ensuring that businesses thrive to generate economic prosperity and sustainable development.

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