By Ekemini SIMON

ANALYSIS of government data from the National Oil Spill Detection and Response Agency’s gas flare tracker, in comparison with government documents from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigeria Extractive Industries Transparency Initiative (NEITI), reveal multi-billion-naira shortfalls in payments received by the agency as gas flare penalties designated by the Petroleum Industry Act (PIA) for environmental remediation and relief to oil and gas host communities.  This report links the shortfall to the failure of oil and gas companies to pay the actual amount in penalties as well as the inability of NUPRC to enforce the same. Furthermore, the agency has failed to account for the funds it did get in the last three years. TheMail Newspaper visited four top oil-producing states in Nigeria and reports the environmental challenges faced by local communities and how the failure of the Nigerian government to utilise these penalties for its intended purpose continues to worsen the hardship of locals.  

Read the second part HERE

Delight Friday, a widow in her late 60s, lived a relatively comfortable and contented life, going about her fish drying business in Itakabasi, Ibeno Local Government Area (LGA) of Akwa Ibom State. That was until disaster struck in August 2010 when an unprecedented coastal flood swept away the entire oil-rich Niger Delta community into the Atlantic Ocean.  

The sea level had risen, huts, farms, fishing boats and lives were lost to what residents now call “the great disaster.” But Friday and her six children were fortunate, they were not among the 23 people who lost their lives to the disaster. 

The tragedy forced the mother of six to abandon her ancestral home, farmland and business to take shelter in neighbouring Okoroitak community.  

“For 14 years now, I have been squatting with a good Samaritan here. I couldn’t recover what I lost to the flood so as to stand again on my feet in terms of my business,” she said. 

Fourteen years later, the water has not receded and Friday and other members of the Itakabasi community are unable to return to their ancestral land.

Itakabasi, a place they once called home is now a part of the Atlantic Ocean, only recognised by a pillar of wood preserved on the ocean to signify the house of the village head.  But they remain hopeful. Though hosted by neighbouring communities of Okoroitak, Iwokpom and Okoroinwang, the people sacked by the coastal erosion long to someday return home. Their Village Head, Isemmi Enyina, urged the government to reclaim their land and execute an ocean embankment project so that the people can return to their ancestral land.  

When this reporter visited the area in September, he noticed that Okoroitak, Iwokpom and Okoroinwang, where the people of Itakabasi now call home, have equally been pushed further upland by the encroaching coastal erosion.  

Man loses two children to gully  erosion

East of Ibeno LGA is Mbo, another oil rich coastal area. At Eyoefia community of Ewang, Mbo LGA, Joseph Ante, in his late 30s, struggled to build a home and start a family from the proceeds of fishing in 2016.  

In late 2018, a gully started near his house. Although Ante had barricaded some visible areas to protect his family, unknown to him the gully had cut deeper beneath the earth, becoming a looming danger with a heavy cost for Ante’s family. During the July 2022 rainy season, his two children, aged four and two, were playing outside when the gully caved in and swallowed his children. His two-year-old daughter died instantly while his four-year-old son was rescued but died two days later due to complications from the injuries he sustained.  

Now, Ante fears for his life as the gully continues to encroach nearer to his house. He insists on living in the house, claiming he has nowhere to relocate to.  

The environmental mishap and threats faced at Eyoefia community is similar to the telltale of woes faced by residents of Eyo Udombo and Uko Akpan communities still in Ewang. The once vibrant road leading to the beach market has been replaced by gullies which started manifesting in 2019. Four houses have already caved in between 2023 and 2024. When TheMail visited the community in mid-September, seven houses were sighted at the edge of the gully.  

The village head of Uko Akpan, Emmanuel Etim, said they have sought help several times from the federal, state and local governments yet no help has been rendered to remediate the environmental crisis and provide relief to those who have lost properties to the gully. He fears the gully may consume more homes by the next rainy season.  

PIA’s provision on environmental remediation and relief 

The environmental concerns highlighted in Ibeno and Mbo local government areas of Akwa Ibom State reflect a glimpse of the many environmental challenges caused by climate change. Before now, being on the fence line of ecological challenges and bearing the brunt of gas flaring had left many communities with no funds to address the impact of climate change.

Gas flaring, according to the World Bank contributes significantly to climate change. Yet, until the Petroleum Industry Act (PIA) came into force in 2021, the penalties on gas flaring were shared as part of revenue across the country.  

Interestingly, Section 104(4) of the Petroleum Industry Act (PIA) provides that “Money received from gas flaring penalties by the Commission (Nigerian Upstream Petroleum Regulatory Commission) under this section, shall be for the purpose of environmental remediation and relief of the host communities of the settlors on which the penalties are levied.” 

Had the oil and gas companies and the Nigerian Upstream Petroleum Regulatory Commission, adhered to this law, the plight of communities such as Ibeno and Mbo would have been addressed through environmental remediation projects and relief missions from gas flaring penalties in the last three years. 

For instance, Ibeno local government is the host community for Network Exploration and Production, a company producing within the OML 13 asset and Mobil Producing Nigeria. Analysis of gas flare data by the Nigerian Gas Flare tracker; a satellite gas flare tracking portal by the National Oil Spill Detection and Response Agency (NOSDRA) shows that between 2021, when the PIA came into force and 2023, a total of 10.4 million dollars is payable as penalties for the gas flared on the OML 13 asset.  

Analysis of the Central Bank of Nigeria (CBN) rate used within the three years as published by the Oil and Gas Reports of the Nigeria Extractive Industries Transparency Initiative (NEITI), shows that the $10.4 million payable as penalties by Network Exploration and Production, together with Frontier Oil, operating in nearby Esit Eket and Eket amounts, to N5.19b. When divided among Ibeno, Esit Eket and Eket, each LGA would likely receive at least N1.7b.  

Interestingly, Ibeno LGA is among the eight communities in Akwa Ibom State hosting four shallow water assets operated by Mobil Producing Nigeria. Analysis of data by the tracker shows that the penalties accrued to Mobil Producing Nigeria as flare penalties for its four assets is put at N130.3 billion, to be paid to the Nigerian Upstream Petroleum Regulatory Commission.   

When divided against the eight communities of Eket, Esit Eket, Ibeno, Onna, Mbo, Mkpat Enin, Ikot Abasi and Eastern Obolo, it means that Ibeno will receive at least N16.29bn as flare penalties. Added to its share of N1.7b from Network Exploration and Production, Ibeno would be entitled to at least N18bn. This amount is, by law, expected to have been used for environmental remediation and relief in the council area.   

For Mbo LGA, the gas flare tracker shows that within this three-year period, N10.65bn should have been paid by Addax Petroleum Limited, Moni Pulo and Universal Energy for the gas flared in their respective assets OML 123, 114 and 14. When added to its share of N16.29bn flare penalties from Mobil Producing Nigeria, Mbo would then be entitled to a total of N26.94bn. with such an amount, the environmental challenges faced in the LGA could have been addressed if the penalties for the gas flared within the domain had been paid and the funds utilised.  

In all, for the entire 11 assets belonging to Mobil Producing Nigeria, Addax Petroleum, Total Energies, Frontier Oil, Moni Pulo and Universal Energy, operated within eight communities of Akwa Ibom State, analysis of the gas flare tracker shows that a total of N152.21bn should have been released as the flare penalties by the oil and gas companies in the last three years. 

Despite N84.57bn remediation fund, Rivers community languish in flood devastation  

In early 2024, Helen Azubike, a widow with five children, planted cassava, cocoyam and vegetables on two hectares of land in Erema Town, Egi community of Ogba/Egbema/Ndoni council area of Rivers State.  

She had planned to use the proceeds to feed her family and cater for the academic needs of her children as well as other sundry family essentials. But her plans were washed away by a devastating flood that swept away her community in August 2024, destroying her farm among others in the community.  

Speaking to this reporter, Azubike said since the incident, her children had dropped out of school for the first term, until she is able to cultivate again. 

 Azubike is, however, not alone. When TheMail Newspaper visited the community in September, many farmlands lay bare, with cassava stems washed away by flood. Farmers lamented that in recent years, flooding have become perennial and causes deep hunger and poverty in the community. 

Others said the flood had gone beyond destruction of farmlands. In 2021 and 2022, members of the community were sacked by the flood. The Paramount Ruler of Erema community, Eze Alexander Odeyi said many who couldn’t move to safer locations had to camp at a school located at a higher ground. 

He said despite the destruction of property and loss of two residents, relief materials were only donated by Total Energies, but none from the government.  

Odeyi said they desired a drainage system to cut off flood water into the community through the forest of Delta State.  

Again, an environmental remediation project would have benefitted the community, if the actual flare penalties by Total Energies had been paid and properly utilised by the NUPRC.  

Analysis of data from the gas flare tracker reveals that Total Energies was expected to have paid N6.13bn as penalties for gas flared in Erema community between 2021 and 2023. 

The environmental challenge faced by the community is similar to the plight of the people of Umuechem in Etche LGA where Heirs Holding Oil and Gas operates and flares gas. 

Annually, at the height of the rainy season, community members battle flood in their homes, losing property while closing their shops until the water recedes. When TheMail Newspaper visited the community in September, a trader, Eli Ordu said he was unable to open for business between July and August because the area was flooded.  

 “I had to borrow money to feed my family for the two months period because I couldn’t sell anything due to the flood,” he added. 

 The Paramount Ruler of Umuechem, His Royal Highness, Eze Sampson Emu, linked the perennial flooding in the community to poor drainage system. He believes the flood concerns may be abated with a functional drainage.  

Umuechem community hosts Heirs Holding Oil and Gas, a company that operates the OML 17 asset and should have paid N22.36bn as penalties for gas flaring between 2021 and 2023, based on records from the Gas Flare Tracker.  

 The 13 oil and gas assets in Rivers State are operated by eight companies including Heirs Holdings oil and gas, Eroton E and P, NNPC E and P Limited (NEPL), Shell, Belema Oil Producing Ltd, Aradel, Total Energies and Amni International Petroleum Development. Records by the Gas Flare Tracker shows that gas flare penalties payable by the eight companies for Rivers State in the three years accumulated to N84.57bn.  

 These are funds which could have gone a long way in providing environmental remediation and relief to the communities.  

Bayelsa Communities risk being wiped-off despite N64.86bn environmental remediation funds  

Like the once vibrant Itakabasi in Ibeno LGA of Akwa Ibom State that is now part of the Atlantic Ocean, many oil and gas communities in Bayelsa State risk being wiped-off from the map. 

 In 2010, when Gbalipiri Renah, a fisherman at Odioma, a coastal community in Brass LGA in Bayelsa State completed his house, he thought he had achieved a part of his life’s goals and was then ready to focus on training his five children.  

 For the 45-year-old, things took a drastic turn in 2022 when he lost his home. Although his house was built far off the coast, the sea levels had risen rapidly upland, causing an unprecedented coastal erosion within the space of 10 years. 

 The coastal erosion had washed away Renah’s building, together with several others in 2022. With tears streaming down his cheek, Renah showed this newspaper the rubble of what remains of his five-bedroom bungalow at the shore. He said the disaster had cost him his life savings and unsettled debts.  

 “Since then, I have no money to build another house or rent an apartment. I now squat with family members and friends together with five children. Due to inconveniences on those that host us, sometimes I rotate where I and some family squat. This week, I will live with my sister, next week, with my brother and so on,” he said.  

 The father of five explained that the situation has impacted negatively on his children’s academic performance as they are being forced to relocate periodically. Renah also decried that this nomadic lifestyle has withered his once strong family bond.   

 When TheMail Newspaper visited the community in September, rubbles of 16 buildings, including two storey buildings were sighted by the shores. Two concrete walkways leading to the shores were also washed up to the third layer of the soil. The community cemetery was not spared. The Assistant Secretary of Odioma Youth Association, Iworisou Fedinand who showed this newspaper around the community said over 200 buildings had been lost to coastal erosion in the last five years. 

 Though Odioma community is host to SPDC, Aiteo and Agip oil companies,  the Chairman of the Chiefs Council of Odioma Kingdom, Chief Sunday John Igbousa, ascribed the condition of the community to years of government neglect despite calls for intervention. He urged government to reclaim the land and ensure ocean embankment projects. 

 he situation is no different at Sangana community which plays host to First E &P, Conoil and SPDC.  Like Odioma, houses have been plunged into the ocean. 

At Koluama community in Southern Ijaw LGA, which hosts Conoil, First E & P, NEPL, SPDC and NIGDEL United Oil, the environmental disaster remains dire. Due to ocean surge, the community has migrated to two separate locations known as Koluama 1 and 2. Besides the travails of flooding, even at the new locations, residents expressed sadness over the loss of historical sites, including a place they called “the grave of Lord Lugard.” 

The paramount ruler of Koluama, Newton Ogboin- Mienyi said six houses gave way to the ocean surge during this year’s rainy season. He blamed gas flaring by the oil companies in his domain for aggravating the situation by melting the ice beneath the ocean, thus causing increased ocean surge. 

The paramount ruler said despite several letters to the federal and state governments for help, relief and remediation is yet to arrive. 

However, checks into the gas flare tracker shows that the gas flare penalties payable by oil and gas companies in Odioma, Sangana, Koluama among other host communities in Bayelsa State amounts to N64.86bn. These funds could have been used for their environmental remediation and relief. 

Read the second part HERE

 This Investigation is supported by the John D. and Catherine T. MacArthur Foundation and the International Centre for Investigative Reporting