Nigeria loses $850m to gas flaring

Gas flaring
  • As NLC threatens governors, lawmakers over minimum wage

In spite of orchestrated noise to the contrary, Nigeria still reportedly lost over 850 million dollars to gas flaring in 2015.

The Department of Petroleum Resources (DPR) which confirmed this on Sunday, highlighted that though gas flaring is presently dwindling, the “scale of gas flaring is still worrisome’’.

Deputy Director, Head, Upstream, DPR, Mrs Pat Maseli also corroborated the revelation with statistics at the just concluded 10th Annual Sub-Saharan Africa Oil and Gas Conference in Houston, Texas, U.S.

Expatiating on this in Lagos, Chairman, Energy Corporate African, Mr Sonny Oputa the organiser of the conference affirmed Maseli’s view point that the development led to a loss of 3,500 megawatts of electricity generation and about 400 million dollars carbon credit value emission.

“55 million Barrels of Oil Equivalent (BOE) was lost and 25 million tons of carbon dioxide emitted.

“The country is recording decline, but the scale of gas flaring is still worrisome’’, indicated Maseli, noting that with almost 8 billion cubic meters of gas flared annually, according to satellite data, Nigeria had the seventh largest gas flaring in the world.

“At the same time, approximately 75 million Nigerians lack access to electricity.

“In recent years, Nigeria has shown significant progress by reducing gas flaring by about 2 billion cubic metres from 2012 to 2015,’’ she further indicated, maintaining that prior to now, there were no gas terms in place, but the department had recently developed policies on gas terms and utilisation.

“This was passed to operators for their input which will subsequently be sent to the National Assembly for its passage.

“The Gas Master Plan seeks to deliver gas to commercial sub sector for use as fuel, captive power and related end-use, to consolidate Nigeria’s position and market share in high value export markets.

“It will create regional hub for gas-based industries, including fertiliser, petrochemical and methanol.

“It will also transform the gas sector to a value-adding sector,’’ Maseli said.

On the breakdown of the 2008-2013 Domestic Gas Supply Obligation (DGSO), she said that  compliance was at an abysmal 23 per cent; adding that in 2016, the DGSO was achieved at 38.18 per cent, while in 2017, it was 40 per cent.

Nigeria is the ninth largest gas producing nation in the world.

In the meantime, the stage appears set for a clash of the Nigeria Labour Congress (NLC) with governors and lawmakers pushing the bill which seeks to remove the National Minimum Wage from the exclusive to the concurrent legislative list.

The NLC leadership yesterday threatened to mobilise Nigerians against governors and some National Assembly members.

NLC President Ayuba Wabba, who spoke with The Nation last night, accused some members of the Nigeria Governors’ Forum of sponsoring such an anti-workers’ legislation.

The bill which scaled through the first reading before the House embarked on Easter recess, is set for second reading on the floor of the House where members will debate on it.

Wabba, who kicked against fresh moves to “strangulate workers”, who have been frustrated by the lingering socio-economic hardship, said labour would explore every legitimate legal means to protect workers. “We have done in the past and we are going to deplore it,” he said.

The Congress plans to mobilise its affiliates to campaign against all political office holders linked with anti-workers’ legislations and policies ahead of the 2018 and 2019 general elections.

Wabba said: “All over the world, minimum wage is on the exclusive list. We are talking about protecting the most vulnerable group, that is the principle and philosophy. It is an ILO core issue under decent work agenda. It is a core ILO issue that all countries are conformed to.

“So, first is that it is the level of ignorance because he thinks that it is only for the state. No. It is for the self-employed for those that are from the private sector to protect the most vulnerable people from being exploited from false labour and slavery. That is why minimum wage law is there.

“It is a core ILO convention and in many countries of the world, including capitalist economy. As capitalist as the United Stated (U.S.) is, they have a minimum wage law.

“So, we must first understand the concept. It is not the state government. It is all employers of labour generally, both private and public. So, for public sector, who fixes their own? That is why it is a tripartite issue. I think that there is a level of ignorance he has demonstrated in this without even knowing what minimum wage law is all about.

“First, we condemn it in its entirety. We are going to respond immediately and effectively. Two, let him also go back to the archives. This issue was introduced even by some cabals within the Governors’ Forum at the last constitution amendment and it was defeated.

“It went to a referendum and it was defeated. So, we should start from where we stopped and not to take us back to areas we have actually advanced on.”

Wabba said that millions of Nigerians who are self-employed and those working in the private sector will be subjected to undue exploitation if the national minimum wage is removed from the exclusive list to the concurrent list.

“Who will regulate the case of the self-employed; for instance now, you are self-employed, you are not working under either the state or the federal government where you can even negotiate.

“So, the implication is that once you remove that from the exclusive list, workers will be exploited. We are not even talking of the maximum, we are talking about the minimum.

“Assuming the alteration bill sells through in the National Assembly, what will organised labour, especially the leadership of the NLC, do? It will not said through because we will stop it at all cost. Nigerian workers will not accept this.

“The proponent of the bill, Ayeola Abayomi Abdulkadir (APC-Lagos), seeks to alter the Second Schedule, Part 1 of the 1999 Constitution (as amended) by deleting item 34 from the exclusive legislative list and renumbering the existing item 35 as item 34 and subsequent items accordingly.”

Also yesterday, the President, United Labour Congress (ULC), Mr. Joe Ajaero, said moves to remove minimum wage from the exclusive to concurrent legislative list would be protested.

Additional report from Nation