Thursday, October 6, 2022

Nigeria regulator seeks $70M penalty in lawsuit against Meta

A Nigerian advertising regulator has sued Meta, accusing the owner of Facebook and WhatsApp of publishing unauthorized ads and seeking a 30 billion naira ($70 million) fine.

The lawsuit filed in a local court by the Advertising Regulatory Council of Nigeria, or ARCON, is the regulator’s latest action that analysts say could hurt businesses highly dependent on digital ads for their growth.

Nigerian advertising laws require the regulator to approve ads based on certain criteria with the involvement of an advertising practitioner in Africa’s largest economy.

“Before you put out anything, it should be vetted and approved by ARCON first before exposure,” the agency said Tuesday. “Anything that has not been vetted and approved by ARCON is a violation of our law.”

A Meta spokesperson said the company doesn’t comment on ongoing legal claims.

The regulator published some details from the court filings, including a request for a declaration “that the continued publication and exposure of various advertisements directed at the Nigerian market through Facebook and Instagram platforms by Meta Platforms Incorporated without ensuring same is vetted and approved before exposure is illegal, unlawful and a violation of the extant advertising Law in Nigeria.”

The Nigerian government said Meta displaying unvetted ads has cost the country a loss of revenue, without providing details.

The agency warned against “unethical and irresponsible advertising on Nigeria’s advertising space,” raising questions over what constitutes such advertising.

The court case against Meta comes about a year after the Nigerian government began moves to get social media networks to run local offices in the country. That followed a seven-month ban on Twitter, which the government had accused of allowing “persistent use of the platform for activities that are capable of undermining Nigeria’s corporate existence.”

By Chinedu Asadu

AP

Nigerian oil export terminal had theft line into sea for 9 years

Officials in Nigeria discovered an illegal connection line from one of its major oil export terminals into the sea that had been operating undetected for nine years, the head of state oil company NNPC LTD said.

The 4-kilometre (2.5-mile) connection from the Forcados export terminal, which typically exports around 250,000 barrels per day (bpd) of oil, into the sea was found during a clamp-down on theft in the past six weeks, NNPC Chief Executive Mele Kyari told a parliamentary committee late on Tuesday.

"Oil theft in the country has been going on for over 22 years but the dimension and rate it assumed in recent times is unprecedented," Kyari said in an audio recording of the briefing reviewed by Reuters.

Thieves often tap land-based pipelines to siphon oil undetected while they continue to operate, but an illegal line in the ocean is highly unusual and suggests a more sophisticated theft operation.

Forcados operator SPDC, a local subsidiary of Shell (SHEL.L), did not immediately provide a comment.

Nigeria, typically Africa's largest oil exporter, is losing potential revenue from some 600,000 bpd of oil, Kyari said, as some is stolen and as oil companies idle certain fields rather than feed pipelines tapped by thieves.

Crude oil exports fell below 1 million bpd in August for the first time since at least 1990 as a result, starving Nigeria of crucial cash.

Loadings at the terminal have been stopped since a leak was found from a sub-sea hose at the terminal on July 17. Shell said this week that it expected loadings to resume in the second half of October.

In August, NNPC awarded contracts to companies including those owned by former militants to crack down on oil theft.

By Camillus Eboh

Reuters

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23 hostages from Nigeria passenger train reported freed

More than 20 people who were abducted from a passenger train in Nigeria have regained their freedom after more than six months, Nigerian authorities said Wednesday.

A government committee assembled by Nigeria’s chief of defense staff “secured the release and took custody of all the 23 remaining passengers held hostage,” the panel said.

Authorities did not respond to inquiries about how the hostages were freed. The committee did not announce any arrests in connection with the development.

It was not clear if ransoms were paid to free the passengers. They often are in many remote communities of Nigeria’s troubled north, where large bands of assailants have abducted residents and travelers and then let them go in exchange for large payments.

In late March, gunmen attacked the train with explosives and gunfire near Nigeria’s capital, killing seven people and abducting dozens of others. Some passengers previously were freed in batches on more than three occasions.

A spokesman for the families of the remaining passengers said no one had informed them yet of the latest release.

No group claimed responsibility for the March attack. Authorities said it was carried out by armed men from northern Nigeria with the aid of Islamic extremist rebels who have waged a decade-long insurgency in the country’s northeast.


Protesters accused the government in the months following the train attack of “not doing enough” to rescue the hostages.

In September, Nigeria’s security forces arrested a negotiator who was holding independent talks with the assailants to free the remaining passengers. Authorities say they found “incriminating materials” in his house. 

By Chinedu Asadu

AP

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Wednesday, October 5, 2022

‘Nigeria’s fast decaying ports infrastructure threatening foreign trade’

Stakeholders in the maritime sector have raised the alarm that the infrastructure in the nation’s seaports are fast decaying and threatening international trade in the country.

They said the collapsed portions of some terminals inside the ports are getting worse on a daily basis as no efforts are made to rehabilitate them.

The National Secretary, Maritime Researchers and Authors Association of Nigeria (MARASSON), Ajanonwu Okechukwu Vincent, told The Guardian that the quay aprons at Brawal, Five Star Logistics, Port and Cargo, TICT, GREENVIEW, APMT, ENL and Apapa Bulk terminals have collapsed into the water.

He said that Brawal terminal has been destroyed almost completely by erosion, noting that a crack that was deliberately ignored has developed into a gully.

Recall that the Managing Director, Nigerian Ports Authority (NPA), Mohammed Bello-Koko, last week, said the nation’s seaports require urgent attention in the collapsed quay apron at the Tin-Can Island port and collapsed jetty at Continental Shipyard, collapsed berth at Federal Lighter Terminal (FLT) and fencing of common user port facility in line with the specification of International Ships and Ports Facility (ISPS) code and the collapsed breakwater at Delta port.

“If the cracks were promptly arrested they would not have developed into the valleys they are today. But in Nigeria cracks are ignored until they become valleys. At that point trillions of Naira would come to the rescue instead of millions and billions of Naira. You must have heard that NPA has budgeted N600 billion in this year’s budget for reconstruction of the collapsed Nigerian Ports. There is insincerity in the whole arrangement. The present government has only seven months to go. We are now in the political campaign period, politicians will now use the collapsed ports as campaign material,” Vincent said.

Vincent said the Concession Agreement in 2006 was flawed, as it made provision for repair and/or reconstruction of the ports infrastructure by the Nigerian Ports Authority (NPA) instead of the concessionaires, despite the government’s low maintenance culture and bureaucratic system in its agencies.

He said government has no business being involved in this kind of haphazard arrangement that has now gone sour, noting that the next concession agreement/renewal should enforce the duty of port maintenance and reconstruction of collapsed quay aprons and provision of fenders among other dilapidated infrastructure as the responsibility of the terminal operators.

Vincent also lamented that the Federal Government’s policies are killing the maritime industry and indigenous operators, while favouring foreigners who operate 80 per cent of the trade in the country.

He said the country’s maritime trade is the worst victim of the Federal Government’s policy from 2015 to date, which started with the auto policy of 2013.

He said the vehicle assembly plants were to bring in completely knocked down parts at 20 per cent duty rate, while indigenous importers were to pay 35 per cent.

He said this policy favoured foreigners more than the indigenous operators, noting that the policy boosted smuggling.

“Take a look at the Vehicle Identification Number policy that has no place in the valuation principles of any trading nation. It violates Act 20 of 2003, which is the legal valuation principle presented to the World Trade Organisation by the Nigeria Customs Service in 2007.

“Compare the highest cargo throughput, which stood at 14 million ton equivalent units (TEU) in 2014, with the present 3.5 million TEUs in 2022, you will agree with me that there is a deliberate policy to kill the Nigerian trade industry,” he said.

Vincent stressed that all terminal operators are fencing agents out of the ports with barbed wires and stringent conditions that require access cards before an agent can enter any of the terminals.

He said about 70 per cent of the agents cannot enter the terminals because they don’t have Form C 30 and are therefore not qualified for access cards. He said at PTML, the Access Card office is humiliating and embarrassing agents.

Also speaking, the General Secretary, Association of Bonded Terminal Operators of Nigeria, Haruna Omolajomo, said the renewal of the concessionaires by Federal Government should be of concern to all Nigerians, especially the stakeholders in the maritime industry, having regard to infrastructural decays at the ports, which solution seem impossible to address in the next coming years.

He said what should be paramount to NPA and Federal Government is the need for infrastructural decays not to surpass minimum acceptable international standards before renewing their agreement.

Omolajomo said, although the concessionaires have claimed to have put everything in place and have surpassed the minimum standards expected of them by the government, certain questions beg for immediate answers.

He listed the questions to include: “Of what benefits were the first concession to the economy and people of Nigeria? Have the government and people of Nigeria really benefited from these concessionaires? Do these concessionaires actually or practically contribute to the social activities of their environments or even helped in the community development of their areas? Do their actions or inactions help the local content that is paramount in the Federal Government agenda?

“What impacts do their business have on our local currency? Is it a case of transferring all the money they make out of the country without the people here benefitting from it or using it to grow our economy? What of employment, how many Nigerians are benefitting from these concessionaires?”

He said the concessionaires activities or actions form part of what is killing indigenous bonded terminals or the inland container depots (lCDs) as well local content addition.

According to him, the concessionaires have practically taken businesses off Nigerians that ought to benefit and use whatever is got to develop the country, rather than take all the profits made to their home countries.

Omolajomo said convincing government not to renew their concession would be asking a camel to pass through the eye of a needle, suggesting that for things to work perfectly, there should be a conscious policy or law enacted by the National Assembly that will allow tangible percentage of cargo inflow to be handled by the local or indigenous operators, about 35 per cent to satisfy the local content policy of the Federal Government.

He said the indigenous bonded operators must be carried along in all regulations and policy, noting that bonded terminals have invested over N5 trillion and have performed below 15 per cent capacity utilisation due to Federal Government policy that favoured the foreign concessionaires at the expense of the local content.

“On regular basis, the concessionaires must be closely monitored to ensure that whatever they get as profit, a certain percentage is ploughed back for infrastructural development as well as social benefits for the people of Nigeria. Any concessionaire that fails to comply should be blacklisted and punished adequately,” he suggested.

By Adaku Onyenucheya

The Guardian

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Two oil wells operated by Nigeria's Eroton on fire

Two oil wells operated by Nigerian firm Eroton Exploration and Production Limited caught fire on Monday and were still burning on Tuesday after the company hired a contractor to try extinguish the fire, the agency responsible for detecting oil spills said.

It was not immediately clear if this was the same area where a well operated by Eroton spilled oil and gas into the Niger Delta for more than a week in June.

Eroton produces and exports crude from its Oil Mining Lease 18 block through the Nembe Creek Trunkline.

The National Oil Spills Detection and Response Agency (NOSDRA) said the fire broke out at two wells in Rivers state, in the Niger Delta. A boat suspected to have been engaging in theft of crude oil was burnt to ashes at the site.

"The company has mobilised a vendor, which is expected to arrive at the incident location today, October 4, 2022 to extinguish the raging fire from the wells, the agency will supervise the activity accordingly," Idris Musa, head of NOSDRA said in a statement.

Oil spills are common in the oil producing Niger Delta where crude production has been hobbled by theft and vandalism of pipelines, hitting Nigeria's export earnings. 

By Tife Owolabi

Reuters

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