Tuesday, December 24, 2024

Nigerian agency ‘failed completely’ to clean up oil damage despite funding, leaked files say

As it passed above the Niger Delta in 2021, a satellite took an image. It showed acres of land, scraped bare. The site, outside the city of Port Harcourt, was on a cleanup list kept by the United Nations Environment Programme, supposed to be restored to green farmland as the Delta was before thousands of oil spills turned it into a byword for pollution. Instead the land was left a sandy “moonscape” unusable for farming, according to U.N. documents.

That failed cleanup was not an exception, records obtained by The Associated Press show. Previously unreported investigations, emails, letters to Nigerian ministers and minutes from meetings make clear that senior U.N. officials were increasingly concerned that the Nigerian agency in charge of cleaning up crude oil spills has been a “total failure.”

The agency, known as Hyprep, selected cleanup contractors who had no relevant experience, according to a U.N. review. It sent soil samples to laboratories that didn’t have the equipment for tests they claimed to perform. Auditors were physically blocked from making sure work had been completed.

A former Nigerian minister of the environment told the AP that the majority of cleanup companies are owned by politicians, and minutes show similar views were shared by U.N. officials.

It wasn’t supposed to be this way.


Thousands of oil spills in Nigeria’s Niger Delta

There have been thousands of crude oil spills in the tidal mangroves and farmlands of the Niger Delta since oil drilling and production began in the 1950s. Reports and studies document what is widely known here: People often wash, drink, fish and cook in contaminated water.

Spills still occur frequently. The Ogboinbiri community in Bayelsa state suffered its fourth spill in three months in November, harming farm fields, streams and the fish people rely on.

“We bought the land in 2023; we have not harvested anything from the farmland; both the profit, our interest, everything is gone,” said Timipre Bridget, a farmer in the community. “No way to survive with our children again.”

Many of the spills are caused by lawbreakers illegally tapping into pipelines to siphon off crude oil they process into gasoline in makeshift refineries.

After a major U.N. survey of spills more than a decade ago, oil companies agreed to create a $1 billion cleanup fund for the worst affected area, Ogoniland, and Shell, the largest private oil and gas company in the country, contributed $300 million. The Nigerian government handled the funds and the U.N. was relegated to an advisory role.

To oversee the work, the government created the Hydrocarbon Pollution Remediation Project, or Hyprep. It first addressed sites that were supposed to be easy to clean, like the one outside Port Harcourt. Then it would move on to complex ones, where oil had sunk more deeply into the ground.

But a confidential investigation by U.N. scientists last year found the site outside Port Harcourt was left with a “complete absence of topsoil” and almost seven times more petroleum in the subsoil than Nigerian health limits.

The company that performed that work has since had its contract revoked, Nenibarini Zabbey, the current director of Hyprep, who took over last year, told the AP.

The head of operations when the contract was awarded, Philip Shekwolo, called allegations in the U.N. documents “baseless, mischievous and cheap blackmail.”

Shekwolo, who used to head up oil spill remediation for Shell, said by email he knows more about tackling pollution than any U.N. expert and insists the cleanup has been successful.

But the documents show U.N. officials raising the alarm about Hyprep with Nigerian officials since 2021, when Shekwolo was acting chief.


Systemic issues with contractors

A January 2022 U.N. review found that of 41 contractors allowed to clean up spill sites, 21 had no relevant experience. Not one was judged competent enough to handle more polluted sites.

They include Nigerian construction companies and general merchants. The websites of two construction firms, for example, Jukok International and Ministaco Nigeria, make no mention of pollution cleanups.

In the minutes of a meeting with U.N. officials and Shell, Hyprep’s own chief of communications, Joseph Kpobari, is shown to have said bad cleanups happen because his agency hired incompetent companies. The U.N. delegation warned that despite their inadequate work, these companies were being rewarded with contracts for tougher sites.

Zabbey denied in an email this admission took place. The cleanup of the simple sites was not a failure, he insisted, because 16 out of 20 had now been certified as clean by Nigerian regulators and many returned to communities. Hyprep always complied with guidelines when issuing contracts, Zabbey said, and their monitors were U.N.-trained.


Questionable lab tests

Two sources close to the cleanup efforts in the Delta, speaking anonymously for fear of loss of business or employment, said test results held up by Hyprep as proof of cleanup could not have been real because when officials visited the laboratories, they found they did not have the equipment to perform those tests.

In a letter to its customers, one laboratory in the U.K. frequently used by Hyprep acknowledged its tests for most of 2022 were flawed and unreliable. The U.K. laboratory accreditation service confirmed the lab’s authorization to carry out the tests was suspended twice.

Zabbey defended the cleanup agency in a statement to the AP, saying it monitors contractors more closely now. Labs adhere to Nigerian and U.N. recommendations and are frequently checked, he said, and the U.N. could have trained local lab staff if it chose to.

The U.N. cited another problem — contractors were allowed to assess pollution levels at their sites. No government agency was setting a baseline for what needed to be cleaned up at oil-damaged sites. This meant companies were monitoring their own progress, effectively handed a “blank check,” U.N. Senior Project Advisor Iyenemi Kakulu is recorded as having said in minutes of a meeting in June of last year between the U.N., Hyprep and Shell.


No audits of Nigerian cleanup agency accounts

The U.N. warned the Nigerian government in an assessment in 2021 that spending at the cleanup agency was not being tracked. Internal auditors were viewed as “the enemy” and “demonized for doing their job.” Shekwolo’s predecessor as head of Hyprep blocked new financial controls and “physically prevented” auditors from seeing if work had been performed properly before paying contractors, according to the U.N. assessment.

Zabbey said this too, has changed since that assessment: The audit team is now valued, he said, and accounts are now audited annually, although he provided only one audit cover letter. In it, the accounting firm asked what steps had been taken to “correct the identified weaknesses.”

Shekwolo referred the AP to the office of Nigeria’s president, which did not respond to a request to show how funds are being spent. Environment Minister Iziaq Salako’s office declined an interview.


An environment minister tries to act

Sharon Ikeazor was born in Nigeria, educated in Britain, and spent decades as a lawyer before entering politics. In 2019, she was appointed environment minister of Nigeria. She was well aware of Hyprep’s alleged failings and determined to address them.

“There wasn’t any proper remediation being done,” she told the AP in a phone interview. “The companies had no competence whatsoever.”

In February 2022, she received a letter from senior U.N. official Muralee Thummarukudy, with what experts say is unusually strong language in diplomacy. It warned of “significant opportunities for malpractice within the contract award process,” in the Nigerian oil cleanup work. Ikeazor removed Shekwolo as acting chief of Hyprep the next month, explaining that she believed he was too close to the politicians.

The “majority” of cleanup companies were owned by politicians, she said. The few competent companies “wouldn’t get the big jobs.”

One of Shekwolo’s roles, Ikeazor said, was to deem who was competent for contract awards. Ikeazor said Shekwolo’s former employer Shell and the U.N. warned her about him, something Shekwolo says he was unaware of.

When she hired a new chief of Hyprep was, she had him review every suspect contract awarded over the years and investigate the cleanup companies.

“That sent shockwaves around the political class,” said Ikeazor. “They all had interests.”

“That was when the battle started,” she said.

It was a short battle, and she lost. She was replaced as environment minister and Shekwolo was rehired. He had been gone for two months.

Shekwolo says the only politicians he was close to were the two environment ministers he served under. He was never given a reason for his removal, he said, and suggested Ikeazor simply didn’t like him.


U.N. breaks ties

Last year, the U.N. Environment Programme broke ties with the Nigerian oil spill agency, explaining its five-year consultancy was over. The last support ended in June.

Ikeazor said the real reason U.N. pulled out was frustration over corruption. The two sources close to the project concurred the U.N. left because it couldn’t continue to be associated with the Nigerian cleanup organization.

Zabbey responded that he believes the U.N. merely changed its goals and moved on.

By Ed Davey, AP




Nigeria activates emergency response as Lassa fever kills 190 this year

Nigeria has launched an emergency response centre after recording 190 deaths from Lassa fever, a viral hemorrhagic illness, the country's disease control agency said on Monday.

The disease, mainly transmitted to humans via contact with food or household items contaminated with rodent urine or excrement, has infected 1,154 people in six Nigerian states.

Jide Idris, head of the Nigerian Center for Disease Control (NCDC), said the agency’s risk assessment has categorized it as high, prompting the activation of the emergency Operations Centre to manage the outbreak.

“While the disease occurs throughout the year, peak transmission typically happens between October and May, coinciding with the dry season when human exposure to rodents increases,” he said at a press briefing in Abuja.

The centre will ensure seamless coordination of the control and management of the outbreak.

Symptoms of the virus - which can also be passed between people through bodily fluids of those infected - include fever, headaches and, in the most severe cases, death.

The World Health Organization classifies Lassa fever as a priority disease due to its epidemic potential and lack of approved vaccines.


By Isaac Anyaogu
, Reuters

Monday, December 23, 2024

Nigeria resumes mining in Zamfara state on improved security

Nigeria has lifted a ban on mining exploration in the northwestern state of Zamfara after a five-year suspension, the mining minister said, citing improved security.

Mining activities in Zamfara, which holds huge gold, lithium and copper deposits, were suspended in 2019 following incessant bandit attacks.

"The security operatives' giant strides have led to a notable reduction in the level of insecurity, and with the ban on exploration lifted, Zamfara’s mining sector can gradually begin contributing to the nation’s revenue pool," Dele Alake, mining minister, said in a statement on Sunday.

During the suspension, he said illegal miners had exploited the state's resources.

Africa's biggest oil producer, which is also rich in gold, limestone and zinc, wants its mining industry that contributes less than 1% of its GDP to play a bigger role in its effort to diversify the economy away from oil.

To try to encourage investors, it has introduced reforms, including revoking unused licences, offering investors a 75% stake in a new national mining company, cutting exports of unprocessed minerals, and enforcing compliance with rules against illegal mining.

In its efforts to build capacity, Nigeria at the start of this month signed a training and development agreement with France.

"We need all the support we can get, including technical, financial, and capacity-building assistance from abroad. This is not the first agreement of its kind; similar partnerships have been established with Germany and Australia," Alake said.

By Isaac Anyaogu, Reuters

Video - Nigeria hosts Fencing World Cup



Nigeria made history by becoming the first sub-Saharan country to host the event.

Friday, December 20, 2024

President Tinubu unveils “ambitious” budget

Nigeria’s President Bola Tinubu presented a 47.9 trillion naira ($30 billion) budget for 2025 to parliament on Wednesday.

The bill, Tinubu’s second as president, assumes a benchmark oil price of $75 per barrel and production of just over 2 million barrels per day — an output level some analysts say would be hard to achieve. Nigerian budgets are anchored on oil sales which make up around 90% of foreign exchange earnings.

The budget also assumes inflation will fall from over 34% currently to 15% next year. It is an “optimistic forecast,” says Ibukun Omoyeni, an economist at Lagos-based Vetiva Capital. He believes inflation “may be much higher” than the government’s estimate and that a supplementary budget would need to be issued at some point.

Tinubu, who has largely stuck by a policy agenda that has sharply raised the cost of living during his tenure, said the latest budget was “ambitious but necessary” for the country’s future. Defense and security will take 10% of the proposed spending, while education and health account for 7 and 5% respectively.

The proposal projects that Nigeria’s economy will grow 4.6% next year, above recent estimates from Washington.

According to the IMF, Nigeria’s economy will grow next year by 3.2% after finishing this year with 2.9%. The World Bank’s growth projection for Nigeria for the next three years is an average of 3.7%.

Earlier this month, Nigeria issued a $2.2 billion eurobond partly to raise money needed to make up for this budget’s 3.9% deficit. Central Bank governor Yemi Cardoso described the bond sale as a measure of “growing confidence of investors and the resilience of the Nigeria credit, and evidence of our improved liquidity position.”

The bank under Tinubu’s direction has managed to stabilize the naira currency after a free fall at the beginning of the year following two devaluations. Next year’s budget is anchored on an exchange rate of 1,500 naira to the dollar, an estimate that isn’t far off the naira’s current position of 1,538.

But even if the exchange rate projection is feasible, Tinubu’s spending plan is “not realistic at all” based on its projections for inflation and oil revenues, says Basil Abia, co-founder of economic policy consultancy Veriv Africa. The firm’s best-case scenario projection for inflation next year is 31% — and that is if Nigeria produces at least 1.8 million barrels per day at $90 or more. But Nigeria’s output has been below that mark in the last half decade with insecurity in oil producing communities limiting production.

And Nigeria’s oil earnings next year could be affected by geopolitical factors beyond its control. “A Trump presidency means more American oil in the global market,” raising the prospect of prices going below $70, Abia said.

By Alexander Onukwue, SEMAFOR