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NNPC / Heirs Energies ends gas flaring at OML 17, seals deals with offtakers

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The NNPC / Heirs Energies OML 17 Joint Venture on Tuesday signed Gas Flare Commercialisation Agreements under the Nigerian Gas Flare Commercialisation Programme and approved Non-NGFCP frameworks.

At the ceremony held in Lagos, the JV said the event marked a significant transition from regulatory approvals to structured commercial execution, enabling flare gas volumes across OML 17 to be captured and deployed for productive use, including power generation, industrial applications, cooking gas and compressed natural gas, in alignment with Nigeria’s gas development priorities and energy-transition objectives.

The agreements brought together Heirs Energies, as operator of the OML 17 Joint Venture, and approved flare gas offtakers under frameworks designed to eliminate routine flaring while converting previously wasted resources into economic value.

The offtakers are AUT Gas, Twems Energies, Gas & Power Infrastructure Development Limited (PCCD) and Africa Gas & Transport Company Limited.

Speaking at the ceremony, the Chief Upstream Investment Officer of NNPC Upstream Investment Management Services, Seyi Omotowa, representing NNPC Limited, described the milestone as a practical demonstration of Nigeria’s commitment to gas-based development.

“For us at NNPC Limited and NUIMS, flare gas commercialisation is not a compliance exercise; it is a strategic pathway to improving energy availability, deepening gas-based industrialisation and strengthening Nigeria’s position as a responsible energy producer. OML 17 has become a practical model of this vision, moving decisively from approval to delivery.”

He commended Heirs Energies for disciplined execution and investment, noting that the JV continues to set benchmarks for operational delivery and gas development within Nigeria’s upstream sector.

See also  FG, World Bank in talks over second-largest $1.25bn loan

The Nigerian Upstream Petroleum Regulatory Commission Chief Executive, Gbenga Komolafe, who was represented at the ceremony by the Senior Manager, NUPRC, Mr Ojo Olalekan, reaffirmed the commission’s commitment to supporting the implementation of flare gas commercialisation projects and ensuring that operators and offtakers are enabled to deliver bankable, environmentally responsible gas-to-market solutions in line with the Petroleum Industry Act 2021.

“This ceremony demonstrates Heirs Energies’ commitment to eliminating routine gas flaring across OML 17 and aligns fully with the commission’s Gas Flare Commercialisation Programme and national energy and emission-reduction objectives,” he said.

Heirs Energies’ Chief Executive Officer, Osa Igiehon, noted that the agreements reflect the company’s broader gas-led strategy and brownfield excellence approach, focused on creating long-term value for Nigeria.

“Gas sits at the heart of Nigeria’s development journey. Through disciplined investment, partnership with regulators and credible offtakers, and a clear execution focus, we are converting waste into value, strengthening domestic energy supply and supporting responsible operations across OML 17,” he noted.

Igiehon added that the NGFCP and Non-NGFCP flare gas projects build on recent operational progress by the OML 17 Joint Venture, including a significant increase in gas delivery to the domestic market through brownfield interventions and infrastructure optimisation.

“The JV has also continued to deepen its host-community partnerships through targeted healthcare interventions, education support and skills-development programmes across its areas of operation.

“With the symbolic signing completed, the flare gas offtakers are expected to progress into full project implementation, working closely with the JV, regulators and communities to deliver commercial, environmental and social outcomes.

See also  Blackout fears grow over gas plant maintenance

“The OML 17 NGFCP initiative reinforces Nigeria’s position as a gas-led economy, supporting domestic power generation, industrial growth and responsible resource development while advancing the country’s energy-transition objectives,” he stated.

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ARE NIGERIANS BUILDING CHINA’S ECONOMY WHILE NEGLECTING THEIR OWN?

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While other nations are busy producing, manufacturing and exporting, Nigeria must ask itself a difficult question: Are we building our own economy, or simply creating a bigger market for other countries?

Nigeria has a huge population, abundant natural resources and a massive consumer market. Yet the country continues to depend heavily on imported finished products—from electronics and clothing to machinery, household goods and other consumer items.

The issue is not simply about Chinese businesses or businesses from any other foreign country operating in Nigeria. Foreign investment can bring capital, technology, jobs and expertise.

The bigger issue is whether **Nigerian businesses are being given the opportunity and support to manufacture competitively at home.

Instead of remaining primarily a consumer of finished products, Nigeria needs to strengthen its manufacturing sector and move further up the value chain.

Nigeria needs to produce, not just consume.

A stronger manufacturing economy could help Nigeria:

* Create more jobs for Nigerians
* Add value to locally available raw materials
* Develop industrial skills and technology
* Reduce excessive dependence on imported finished goods
* Build competitive Nigerian companies
* Increase the country’s ability to export

The goal should not be to drive legitimate foreign businesses out of Nigeria. The goal should be to build an economy where **Nigerian manufacturers can compete, grow and eventually take Nigerian-made products to markets around the world.

The question Nigerians should be asking is simple:

**Why should Nigeria remain one of the world’s biggest markets for finished products when we have the potential to manufacture many of them ourselves?

See also  Nigerian Stock Market Soars with N27Tr Gain

🇳🇬 **Nigeria must move from being predominantly a consumer nation to becoming a stronger producer, manufacturer and exporter.

What do you think?

Which products should Nigeria prioritize for local manufacturing instead of relying heavily on imports?

Share your thoughts in the comments.

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ICRC defends toll pricing on highways

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The Infrastructure Concession Regulatory Commission has defended the toll pricing structure under the Highway Development and Management Initiative, saying charges are evaluated against the quality and benefits of the upgraded roads.

In a statement made available to PUNCH Online on Thursday, the Director-General, Dr. Jobson Ewalefoh, cited the 227-kilometre Akwanga–Makurdi road corridor as an example.

He said the route has four toll gates, and motorists pay as they travel along it.

He argued that toll payments should be viewed against the previous costs imposed by the poor condition of the road, including lost man-hours, vehicle damage and accident risks.

Feedback from road users, he said, shows many motorists are willing to pay tolls where they see clear improvements in road quality.

Some drivers have expressed support for similar arrangements on other major corridors if the roads are upgraded to the same standard.

“That, to me, is the beauty of a well-structured PPP,” Ewalefoh said.

He explained that negotiators carefully consider toll pricing to keep charges fair. A portion of the revenue is set aside specifically for road maintenance. Under the concession agreements, the government does not bear additional maintenance costs for the duration of the contract.

The government must repair potholes within 48 hours, and it funds major routine repairs from the dedicated toll revenue.

Source: punchng.com

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Nigeria raises N748.6bn from FGN bonds as rates ease

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The Federal Government raised N748.64bn from its September 2026 domestic bond auction, with investors showing strong demand for both the newly issued 10-year instrument and the reopened 15-year bond.

The Debt Management Office allotted N288.83bn from the N400bn offered on the 10-year FGN bond at a marginal rate of 16.79 per cent.

Investors submitted bids worth N546.90bn for the 10-year paper, pushing demand 36.7 per cent above the amount offered.

The stronger demand for the new 10-year instrument came alongside a moderation in the yield compared with recent borrowing levels, suggesting some improvement in investor appetite for longer-dated government securities.

For the 15-year FGN bond, which was offered as a N600bn reopening, investors submitted N947.83bn in bids.

The DMO allotted N460.01bn from the reopening at a marginal rate of 16.85 per cent, significantly below the 17.79 per cent rate recorded at the previous auction.

Overall, investors sought N1.49tn across the two securities, representing about 49.5 per cent more than the N1tn offered by the DMO.

However, the debt office allotted N748.64bn, leaving about N746.59bn of the bids unaccepted.

The auction results indicate that while demand for Nigerian government securities remained strong, the DMO was selective in determining the volume of debt to issue.

The decline in the marginal rate on the 15-year bond also points to a gradual easing in investors’ required returns on longer-term government debt, although borrowing costs remain elevated.

The latest auction comes as the Federal Government continues to rely heavily on the domestic debt market to finance its fiscal requirements and manage its debt portfolio.

See also  Blackout fears grow over gas plant maintenance

The outcome of the auction will also be closely watched by investors in the secondary bond market, where movements in government bond yields influence pricing across fixed-income assets, including treasury bills, corporate bonds and other debt instruments.

Source: punchng.com

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