Tag Archives: #PIA

Climate Change, Media, Oil and Gas, SDGS

UNMASKING THE MONEY TRAIL, ACCOUNTABILITY ISSUES, AND REPORTAGE ON NIGERIA’S OIL AND GAS SECTOR IS THE ROLE OF NIGERIAN JOURNALISTS AND MEDIA

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By Lady Ejiro Umukoro

July 2024, marks the second year since the Petroleum Industry Act (PIA) was passed. Host
communities are yet to benefit from the 3% statutory allocation due to many communities.
To mark the significance of this year’s PIA and the role of journalists in demystifying the oil and
gas sector, the most shrouded industry in Nigeria, the Nigeria Union of Journalists are reminded
of their role following the training and public discussion by Lady Ejiro Umukoro, the Executive
Director of LightRay! Media.

In the complex landscape of Nigeria’s oil and gas industry, the role of the media has never been
more critical. As the country grapples with economic instability and socio-environmental
challenges, the need for effective and efficient reportage in this sector is paramount. Nigeria,
endowed with vast oil and gas reserves, relies heavily on this industry to fuel its economy.
However, despite its significant contributions, the sector remains marred by issues of mismanagement, corruption, and a lack of transparency. The Nigerian media, often referred to
as the Fourth Estate plays a crucial role in holding the industry accountable and ensuring that
the benefits of this natural wealth are felt by all citizens.

Lady Ejiro Umukoro, Executive Director of LightRay! Media, while delivering a lecture at the Nigerian Union of Journalists workshop in Delta, highlighted the urgent need for a paradigm shift
in how the media covers the oil and gas sector.
The workshop, titled “Repositioning the Mass Media for Effective and Efficient Reportage of Oil and Gas Industry in Modern Time,” aimed to address the pressing need for better media
coverage of the oil and gas sector, brought together journalists from across the country to discuss the challenges and opportunities in reporting on this critical industry.

Umukoro’s lecture emphasized the importance of distinguishing journalism from public relations and advertising, urging journalists to uphold the principles of truth, accountability, and civic duty. She pointed out that despite the oil and gas sector’s pivotal role in funding Nigeria’s
national budget, the media’s coverage has been inadequate, often failing to hold industry players
accountable for their actions. With 70% of revenues from crude oil reportedly not reinvested back into the country, there is a
pressing need for journalists to dig deeper, ask tougher questions, and ensure that the industry
operates transparently. In her words, she said “When 70% of money accrued from crude oil do not find their way back to the country, the media, which is the Fourth Estate, must do better to
follow the money trail to hold government accountable for the public good”, she asserted.

She made a strong case on the difference between journalism and other roles of communication
withing the media ecosystem, stating that “Journalism is not PR. PR is reputation and image management. Advertising is feasibility and sales. Nigerian journalists must learn to separate
these three,” she added. The Role and Responsibility of Journalists
Umukoro underscored the critical role of journalists in a democratic society, emphasizing their
duty to truth, facts, and accountability. “When you’re a journalist, you wear the garb of truth,
fact, unbiased reporting, accountability, solutions, and civic intelligence empowerment,” she
stated.

She disapproved the Nigerian media’s performance in the oil and gas sector, pointing out the lack of transparency and the resulting negative public perception. “The NNPCL, Chevron, Shell,
and other entities in the sector are seen as closed-off groups bleeding Nigeria to death while
plunging its citizens into poverty amidst vast wealth,” she stated.

According to Umukoro, journalists must embrace their role as truth-tellers, upholding principles of accountability, civic intelligence, and public good. She criticized the media’s performance in its failure to adequately cover and report on the oil and gas sector, highlighting the lack of
transparency and closed nature of the industry.
“We have enough data from within governments and businesses within this space that proves
the sector is the most closed off. This shouldn’t be, especially in a democracy,” she stated.

Journalists have a pivotal role in the oil and gas industry, acting as watchdogs, educators, and
advocates for transparency and accountability. In a sector that significantly influences Nigeria’s
economy, their responsibilities are multifaceted and crucial for fostering a well-informed public
and ensuring ethical practices within the industry.
Journalists must act as watchdogs, scrutinizing the activities of oil and gas companies and
government entities involved in the sector. This includes investigating and reporting on issues
such as mismanagement, corruption, and environmental degradation. By holding these entities accountable, journalists help ensure that the wealth generated from Nigeria’s natural resources
is managed responsibly and benefits the wider population.

A critical role of journalists is to educate and inform the public about the complexities of the oil and the gas industry. This involves breaking down technical jargon and presenting information in an
accessible, digestible, and shareable format that requires a unique set of storytelling to make reports on the oil and gas sector go viral to create citizens’ engagement and better transparency.
Journalists should provide comprehensive coverage of policies, laws, and industry practices,
enabling citizens to make informed opinions and decisions.

Economic Context and Challenges

Highlighting the economic implications, Umukoro explained that oil and gas revenues
significantly fund Nigeria’s budget. However, mismanagement and lack of reinvestment hinder
the country’s growth.
“Despite choosing democracy, which demands transparency and accountability, we see a lack of
open data and public access to information,” she remarked. This secrecy contributes to the negative perception of the oil and gas sector and undermines public trust. The country, blessed with abundant natural resources, relies heavily on the oil and gas sector, which accounts for about 90% of its export revenues and over 60% of government income according to research.

This financial dependency underscores the sector’s critical role in shaping the country’s
economic stability and growth.
The substantial revenue generated from oil and gas is intended to support various facets of
national development, including infrastructure, education, healthcare, and social services.

However, Umukoro pointed out that these funds often do not translate into tangible
improvements in these areas. The core issue lies in the systemic mismanagement and
misallocation of resources, where significant portions of oil revenues are lost to corruption and
inefficiency.

Mismanagement and Lack of Reinvestment
Umukoro emphasized that despite the enormous potential of oil and gas revenues to drive
economic growth, Nigeria faces persistent challenges due to the sector’s mismanagement.
Instead of reinvesting profits back into the economy to foster development, a large chunk of
these revenues are siphoned off through corrupt practices and unaccountable governance. This
diversion of funds results in a lack of reinvestment in critical infrastructure and services that
could propel the country forward.

For instance, the country’s refineries do not operate and are below capacity, necessitating the
import of refined petroleum products, which drains the economy further Additionally, the infrastructure within the oil-producing regions, such as roads, schools, and
hospitals, remains underdeveloped, exacerbating the disparity between the wealth generated by
the sector and the living conditions of the local populace.

Transparency and Public Trust

“Despite choosing democracy, which demands transparency and accountability, we see a lack of
open data and public access to information,” Umukoro remarked. This lack of transparency has
been a significant impediment to public trust.
In a democratic system, the public expects and deserves access to information about how
national resources are managed and utilized. However, the oil and gas sector in Nigeria is
notoriously opaque, with limited disclosure of financial transactions, contracts, and revenue
allocations.

This secrecy fuels public suspicion and perpetuates a negative perception of the sector. Citizens
often feel disconnected from the wealth generated by their country’s natural resources, leading
to disillusionment and scepticism about the benefits of the oil and gas industry.

The perception of the sector as a “closed-off group bleeding Nigeria to death” while ordinary
Nigerians struggle with poverty as a direct consequence of this lack of transparency.

Impact on Economic Growth and Development

The mismanagement and opacity in the oil and gas sector have broader implications for Nigeria’s
economic growth and development. When revenues are not reinvested effectively, it hampers
the country’s ability to build a diversified and resilient economy.
The over-reliance on oil and gas revenues makes Nigeria vulnerable to global oil price
fluctuations, which can lead to economic instability. Furthermore, the failure to invest in other critical sectors, such as agriculture, manufacturing, and technology, limits job creation and
sustainable economic development.

Environmental Journalism and Solutions

Umukoro delineated the various niches within environmental journalism, stressing the need for
comprehensive coverage of issues such as pollution, health impacts, and community effects.
She advocated for solutions journalism, which focuses on stories that drive positive change. “We
are not here to create false narratives. We are here to collaborate and work together for the
good of Nigeria,” she emphasized. She outlined key areas of focus:

• Climate: Pollution, weather impacts.
• Conservation: Deforestation, wildlife, water crises.
• Oil and Gas: Health and reproductive impacts, climate implications, pollution, host
communities, corporate social responsibility (CSR), policies, laws, and the impact on flora, fauna,
and tourism

A case study from Umukoro’s media tour revealed a significant gap in public awareness about the
Petroleum Industry Act (PIA). Despite its passage over a year ago, many Nigerians remain
unaware of its implications.
“The radio and TV audiences were clueless even though major news outlets had reported on it. The few who knew were shocked to know it’s already a year and yet not a single positive impact of the PIA can be recalled by the citizens,” she shared. This gap in awareness underscores the
need for more effective communication and engagement by the media.

Umukoro’s lecture called for urgent reforms in how the oil and gas sector is managed and
reported. She stressed the need for greater transparency, robust anti-corruption measures, and
effective reinvestment strategies to ensure that oil and gas revenues contribute meaningfully to
national development. The media has a pivotal role in advocating for these changes by providing
in-depth, investigative reporting that shines a light on the sector’s practices and holds
stakeholders accountable.

Collaboration and Community Engagement

Umukoro stressed the importance of collaboration between the media, communities, and the oil
and the gas industry. She called for increased engagement through public hearings, roundtables, and
town halls to foster understanding and accountability. “Communities and the oil and gas
industries need to think and work as a team. These are the new narratives we want to see and
read,” she advocated.
Umukoro further urged journalists to commit to higher standards of accountability and truthtelling, engaging deeply with communities to uncover impactful stories. “May 2024 be a new zest
of oil and gas reportage in Nigeria like never seen before to speak truth to power, raise the
standards of accountability, and improve the living standards across Nigeria,” she concluded.
The media plays a crucial role in fostering transparency and accountability in Nigeria’s oil and
gas sector. Journalists are encouraged to take inspiration from this workshop and strive for
excellence in their reporting, ultimately contributing to the country’s development and
prosperity. By embracing their role as truth-tellers and public advocates, Nigerian journalists can
help bridge the gap between the industry and the public, ensuring a more transparent and
accountable sector.
Addressing these economic challenges and fostering a more transparent and accountable oil and
gas industry, Nigeria can better harness its natural resources for the benefit of all its citizens,
promoting sustainable growth and development.

Advocacy, Oil and Gas, Social Political, Youth

HACKATHON FOR NIGER DELTA YOUTHS BY THE GIFT NIGERIA PROJECT

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Hackathon L’ACEs (Active Citizens Engaging Legislatives) – ACEs for short.
Pose after Hackathon Cohort in PH

By Smith Nwokocha

The Objectives of the Hackathon, which gathered youths from the Niger Delta region is as follows:

  • To crowd-source ideas on how to disrupt lax projects delivery and encourage satisfactory performance
  • To introduce the ConsTrack and RemTrack civic tech tools to young persons and energize their participation in the GIFT project.

During The Hackathon Activities Proper:

The report here summarizes the activities of the Hackathon that took place in Rivers State for youths and youth groups in the Niger Delta Region. The event started at about 1:30pm with an introduction and recognition of participants. This was followed by a brief presentation given by Mr. Oke, to set the tone on the programme objective. He shared a few slides on Remfact findings to stimulate better understanding of the issues on ground.
This was subsequently followed by a breakout session where participants were divided into six (6) teams made up of 5 members each. The 3 topics of ideation were shared among the groups with 2 groups handling one topic each. The topics bordered on;

  • Follow the trust (in view of the composition and incorporation of the Host Community Development Trust Fund) as well as tracking the set up.
  • Tracking remittances from the petroleum extractive sector
  • Monitoring and evaluation of funds in capital project implementation vis a vis public service delivery.
    The groups worked on their assigned topics for a period of about 30 minutes after which representatives from each group were given the opportunity to speak on what they had come up with.

The first group spoke on tracking remittances while sharing some initial steps to take for effective results. The first of these steps was to do stakeholders mapping, drft letters requesting information from the identified stakeholders based on remittances they received while requesting clarification on data provided which requires clarity. They were however unclear in their presentation on how data can be verified as a solution to tracking remittances.

The second group also made a presentation on tracking remittances. Their solution considered having a transparency plan where the agencies in charge of tracking remittances are first identified alongside the measures they have in place for this purpose. They also identified grassroot tracking as well as checks and balances with full involvement of the media. they again incorporated the use of a tracking software controlled by an independent tracking unit. At the end of their presentation, a recommendation was given for the technology to be carefully considered to avoid creating another bureaucratic system in addition to the already overburdened platforms available.

The third presentation was on Monitoring and Evaluation. Their idea was for the NGOs and CBOs operational in communities to be involved in the implementation of projects designed for those communities. Their solution was to also leverage on google map to determine service area codes of project communities. They also recommended that a Board of Trustee made up of non partisan bodies that will monitor the funds that come into the Trust.

The fourth group spoke on the composition of the HCDTF and how to track the funds. Their recommendation was for the right people to make the board composition with emphasis on inclusivity and proper orientation of these stakeholders. On their technology solution, they proffered the development of a software designed to cover tracking by host communities and operators. It would also have a feature that outlines projects, the funds allocated to these projects and the expenditure incurred. Recommendation was given for their solution to set clarity on how tracking the enactment of the Trust can be made possible and made a public data.
The fifth group in their presentation, spoke on the need to have a composition of the Trust Fund as this would foster ease in tracking the development fund. They highlighted a list of groups that could make up this composition from the community level to the federal level. They also suggested that in tracking the set up, a corporate account be opened with 3 signatories, there should be regular auditing and a monitoring system to track the projects.

Group brainstorming session

The final presentation was on Monitoring and Evaluation of capital projects. They started by giving a run down of problems that have militated against capital projects such as; personal interests, greed and avarice, lack of access to implementation documents, duplication of projects to mention a few. Their solution was streamlined to involve a strategy they called “Name-shaming”, using radio call-ins where individuals guilty of misappropriating funds for capital projects face being name shamed. They also proposed to use the print media for publishing back-up facts that reflect the origin and status of these projects. Their final solution was to promote civic advocacy and engagement on accountability with backing from the provisions of the FRA. In conclusion, they set perspective on already existing technological solutions to project M&E such as the BudgIT app as well as the Constrack and Remtrack apps by Orderpaper, while also recommending the use of USSD as a tracking measure for communities with little or no technology access.

Mr. Oke wrapped up the session by introducing participants to Orderpaper’s Constrack and Remtrack civic tech tools, while encouraging that the ideas and solutions shared, be taken beyond the organizations represented and into the grassroot communities. he gave the vote of thanks at about 5:20pm, group photographs were taken and the session was officially brought to a close.

From left: Amaka Elekwechi Rep Centre for Transparency Advocacy; Edna Ulaeto, OrderPaper, at centre Lady Ejiro Umukoro (Programme Manager GIFT NIG PROJECT) at far right (Temidayo Taiwo-Sidiq) Orderpaper
Advocacy, Oil and Gas, Social Political

GROWTH INITIATIVES FOR FISCAL TRANSPARENCY (THE GIFT NIGERIA PROJECT) HOSTED COMMUNITY COLLOQUIUM IN PORT HARCOURT

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Audience at the Event at Landmark Hotel, Port Harcourt.

By Smith Nwokocha

Objectives to mark the one-year since the passage of the PIA on August 16 2021 at the National Assembly as well as hold an interactive and fact finding session with Host Communities Stakeholders and the media to identify and address perceived gaps in the PIA with a view to stimulating more community engagement for the establishment of the Host Community Trust Fund, an inclusive Board Members and tracking of the 3% due Host Comms in terms of project delivery, social investments and monitoring of infractural development for the region’s prosperity driven by the implementation of the Growth Initiative for Fiscal Transparency (GIFT) Nigeria Project.
Introduce stakeholders to tools for proper tracking and call on all stakeholders to advocate and succeed in pushing for the speedy amendment of the Fiscal Responsibility Act 2007 which is before the National Assembly.

Opening

The event commenced at 10:00am with Mr. Bassey Bassey, ED HipCity Innovation who declared it opened with the recitation of the national anthem as prayers and a quick introduction of the cluster members of the Growth Initiatives Transparency Project, members of government, PENGASSAN and other key stakeholders from the Host Communities. Giving a quick background, he said explained Nigeria’s main revenue is from the Oil and Gas sector, yet data and baseline research shows remittances and revenues due are received from the sector.

Thereafter he introduced the Project Manager for the GIFT PROJECT NIGERIA, Lady Ejiro Umukoro for her welcome remarks. In her welcome remarks, Umukoro emphasized that the significant role and position of Niger Delta in the economic development and advancement of Nigeria. She referenced the Ogoni 9 story as a journey that should serve as a constant reminder that is not yet uhuru in terms of social and economic justice and development of the Niger Delta in terms of remittances due the communities and economic prosperity for the region. Highlighting the one-year mark since the passage of the PIA, which took over 10 years to become an ACT – with a number of deficiencies and inadequacies yet to be fully addressed – she spoke eloquently on the role and objectives the GIFT Nigeria Project is playing ti ensure every stakeholder within the region that is defined as inclusive to the Host Communities iis here to see that every stakeholders empowered to play their role for the actualisation of the PIA and FRA Acts. She raised a number of salient questions regarding: how can we determine the fiscal responsibility and why is this important? In a country where the NNPC is not producing or refining crude oil, yet is expected to remit revenue to Federal Government, what are the gaps and how are these to be addressed? Now that the NNPC is now a limited liability company, how must communities begin to see and engage with the NNPC’s new status? She explained this informed the purpose of the Colloquium of the Host Communities and Hackathon for the Niger Delta Youths holding in Port Harcourt, adding that a system only works, when the people are involved. The GIFT Nigeria Project she emphasised aims to reduce corruption in the sector and ensure transparency of projects.

Lady Ejiro Umukoro (Programme Manager-GIFT Nigeria Project)

GOODWILL REMARKS FROM DIGNITARIES:
Rt. Hon. Dumnamene. Dekor, Chairman, Committee on Host Communities, House of Representatives who was represented by …. goodwill’s message focused on the hiccups surrounding the PIA. The essence of the PIB, he explained is to ensure that the host communities are represented and their voices are heard and to know how to hold leaders accountable. He emphasised the need critical political moment in Nigeria presents an opportunity that allows Host communities and stakeholders to share their views, know their rights and demand for transparency to start from the local government level.
In the same vein, the National Publicity Secretary, PANDEF, Chief Ken Robinson, thanked the organizers and all Niger Deltans at the Forums. He highly commended the role Order Paper has made in terms of inputs and recommendation in achieving the PIA. He however explained that PANDEF is disappointed by the final outcome of the PIA. He called for the need to push further demands and review on the PIA, as it lacks what he described as “resource justice”. He decried a situation where communal lives have been lost, including ecological gains and as such cannot continue to be the norm, making a strong appeal for equitable resource justice that will support and improve the standard living of the Niger Delta communities.
While Mr. Goddey Ineh who represented Mr. Gbenga Komolafe, Controller, Nigerian Upstream Sector expressed delight to be part of the GIFT Colloquium. The GIFT Nigeria Project and Order Paper including other affiliated organizations he enthused are essential to effective governance, adding that the Commission will continue to encourage all Stakeholders as well as the NGOs, as the oil sector has now become a cause for concern. With the PIA, he expressed strong hope that issues of Host Communities, the issue environment passed by the federal government will address these critical factors. He called on all to focus more on educating the Communities on the PIA to harness the full value of the implementation of the Act, adding that the onus is on the Government to make sure that the PIA is implemented in its fullness. The Environmental worthiness he emphasised is key referencing the Ogoni Clean Up by HYPREP. He called for peace in the region to be sustained to ensure that the cleanup exercise is done and completed for the benefits that will be accrued from the Oil and Gas sector to the Host Communities.
Agreeing with the representative of the Upstream Sector, Mr Tamuno Dappu, representing the Chairman of PENGESSAN Port Harcourt Zone (Peter Onita). he described as laudable the initiative by GIFT Nigeria Project. He made a firm promises that PENGASSAN will continue to collaborate with the OrderPaper and the GIFT Clusters to achieve the full implementation of the GIFT Project.
Speaking for the Fiscal Responsibility Commission, Mr. Charles Abanah expressed a profound sense of fulfilment in working as partners with GIFT Nigeria Project to ensure that the impact of project is achieved. He explained that the outcome of the colloquium is to clarify issues of Transparency, pertinent issues on Revenue Remittance, Service Delivery and Project Monitoring and Evaluation in the Niger Delta region. He referenced on how some Sectors/Government Agencies have to remit deliberately not remitted accurately and the action Government is taking to ensure remittance is received accurately and when due.
In concluding the open discussion, Mr. Oke Epia, ED-Order Paper Advocacy Initiative expressed delight in, and commended Mr. Abana and the critical central role the FRC plays in the workability and implementation of the PIA. He further explained that steps were taken to unveil sections and clauses in the PIA that will affect the Communities. The purpose of the Host Community Colloquium is to stimulate conversation on how the Host Communities perceives the PIA, what the Host Communities should do to get value from the PIA then use that value to get it right. He recalled how members of the Host Communities engage in a bawl at the PIB Public hearing in the House of Representatives on January 21, 2021, showed how important implementation needs to be enforced to justify the extant PIA. According to NNPC GMD, he explained that with a 3% of annual OPEX of Oil Companies in Nigeria, which is to be paid to HostComs based on PIA valued at #205billion based on year 2020 projection, he explained that governance mechanism using both the Commission and its Authority have powers to regulate the Host Communities. On the other hand, Host Communities have the responsibilities to support existing structure: Host Community Development Plan and the Formation and Operationalization of the Board of Trustees to follow where the Money will come from, Administration and Allocation of the fund, Punishment for vandalism, Timeframe and penalty.

PANEL DISCUSSION
The Panel Discussion was moderated by the Project Manager of GIFT PROJECT, Lady Ejiro Umukoro with three panellists: Mr. Charles Abana, Chief Ken Robinson and Mr. Goddey Ineh.
Abana gave deep insights into the Fiscal Responsibility Commission Act 2007, the gaps within, and the need for a new amendment in light of blocking leakages, MTEPF, Remittances, Revenues, Allocations, prudent management of Natural Resources, securing greater transparency and accountability within the medium-term focal operation, and to set a framework on public debt management. A situation he explains where ministries spend more than 50% of what they earn/generate should discouraged some of the calls for the FRA 2007 to be amended. Goas regards the Host Community inclusiveness, he explained that there should be a guiding law for the vulnerable populace, women, and youth to be duly represented and be part of Communities engagement. The communities he emphasised must hold leaders accountable.
Ineh emphasised that the main thrust of the PIA is to provide cordial, harmonized working relationship between the Host Communities, Oil Companies and the Government.
Chief, Ken Robinson; It’s the sector that incorporate the host communities. We should go back to our communities, engage our traditional rulers, youths, women and communal groups to do things differently and better.

Colloquium Panel Discussants: from left Lady Ejiro Umukoro (Moderator); Chief Ken Robinson (Nat. Publicity Sec PANDEF); Mr. Charles Abana HOD Legal Fiscal Responsibility Commission; Mr. Goddey Ineh Rep Nig. Upstream Sector at the Gift Project Nigeria Implemented by OrderPaper.
Participants at the Forum