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Oil assets divestments will boost production, says Wabote

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• Caption: Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote with some members of the National Executive Committee and NCDMB Branch Executive of the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) at the 2023 Energy and Labour Summit in Abuja on Wednesday.
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The Nigerian oil and gas industry is poised for a boost in crude oil production, employment creation, and capital injection with the planned divestment of some assets by select international oil and gas companies and concomitant acquisition by Nigerian operating companies, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote said on Wednesday.

The Executive Secretary painted this picture while delivering the keynote address on Divestments in oil and gas: the challenges, the opportunities, and the implications to the industry in Nigeria at the 2023 Petroleum and Natural Gas Senior Staff Association (PENGASSAN) Energy and Labour Summit in Abuja.

Quoting the AfricaReport magazine, he stated that about 26 oil mining licenses have been divested or acquired by oil and gas companies in the Niger Delta Basin area of Nigeria in the past decade. Some of the divestments currently on the cards include the plan by Shell and ExxonMobil to sell oil and gas assets worth billions of dollars, in addition to Eni’s announcement in September of an agreement with Oando PLC for the sale of NAOC interests in six (6) onshore blocks and Okpai gas power plant in, Delta State.

He emphasized that divestments of oil assets are not necessarily negative, rather they present an avenue for the local capacities and capabilities that have been developed through local content implementation to be brought to bear in the upstream sector.

Wabote outlined several opportunities that would accrue from divestments, such as the injection of new capital, the rejuvenation of divested assets, and an increase in crude oil production through the investment in technologies by the acquiring firms.

Other direct benefits are the creation of direct and indirect employment opportunities by the indigenous companies and their service providers.

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He reiterated that the divestments confirm that Nigerians and indigenous companies have come of age and have acquired the technical, managerial, and financial capabilities to play in the “big league”. He added that “the involvement of our financial institutions on the transactions represents means of efficient capital deployment and capacity building on loans syndication on an international scale. This is also applicable to legal services, insurance, government relations, employee relations, community liaison, and others.”

Aside from the opportunities, the NCDMB boss equally highlighted challenges encountered in the divestment exercises. These revolved around the time required to get necessary regulatory approvals as well as the substantial interests from various groups covering political, legal, communities, and labour. Among other challenges are the potential for the disruption of oil and gas production, job losses, as well as “access to latest technology especially if the new investors lack the technical expertise or have no support from original equipment manufacturers.” There are also issues around how “to manage legacy issues or liabilities related to the environment, communities, and other social commitments and pressure on new investors to recoup investments on time to offset loans and address other financial requirements.”

The NCDMB boss assured that the Board would continue to partner with industry stakeholders to institute regulations that would ensure that the increasing footprints and stakes of indigenous oil and gas production companies would not lead to a reduction in Nigerian content compliance. He promised that the Board would continue to partner with PENGASSAN to shape a future where Nigeria’s energy industry not only survives but thrives in the face of change.

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Troops rescue Widow of late Major General Rabe Abubakar

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Troops of the Nigerian Army’s 17 Brigade have rescued Mrs. Abubakar, the widow of the late Major General Rabe Abubakar, who was abducted by bandits shortly before the retired senior military officer died in captivity.

According to military sources, the rescue operation was carried out in Tunga Village, where troops encountered the armed bandits holding her captive. During the exchange, the kidnappers reportedly shot Mrs. Abubakar before fleeing as soldiers advanced on their position.

The troops immediately secured the area, rescued her and administered emergency first aid.

Military authorities said Mrs. Abubakar sustained gunshot wounds and was bleeding when she was rescued. She is currently receiving medical treatment.

The rescue comes days after the burial of Major General Rabe Abubakar, whose death while in captivity sparked widespread outrage and renewed concerns over insecurity in parts of the country.

Following Major General Abubakar’s death, the Defense Headquarters’ Joint Task Force North West, under Operation Fansan Yamma, launched a major offensive operation, codenamed Operation Clean Sweep III, targeting terrorists and bandits operating in Matazu Local Government Area and neighbouring communities in Katsina State.

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According to the military, the operation commenced on 14 June 2026 to locate and neutralise those responsible for the attack, dismantling criminal networks, and restoring security across the affected communities.

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Popular Businessman dies in captivity despite ₦5 million ransom payment

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Alhaji Bala Sani Kawo
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Residents of Dandume Local Government Area of Katsina State have been thrown into mourning following the killing of a prominent businessman and farmer, Alhaji Bala Sani Kawo, by suspected bandits despite the payment of a N5 million ransom for his release.

Kawo was reportedly abducted alongside one of his workers on June 11 near Dantakari town in Dandume LGA when armed men intercepted them and whisked them away into a forest.

Sources close to the family disclosed that the kidnappers later contacted relatives of the victim and informed them that he was ill while in captivity. They subsequently demanded N5 million as a condition for his release.

According to the source, the family raised the money and delivered it to the abductors as instructed. However, after receiving the ransom, the criminals reportedly directed family members to a designated location where Kawo’s lifeless body was discovered.

The killing has sparked grief across the community, with residents lamenting the loss of a businessman widely known for his contributions to agriculture and his role in providing employment opportunities for many youths in the area.

The incident comes amid renewed security concerns in Katsina State and follows the recent death of a former Director of Defence Information, Major-General Rabe Abubakar, who reportedly died while being held captive by terrorists.

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In response to rising insecurity in the North-West, troops of the Joint Task Force North West under Operation FANSAN YAMMA have launched a fresh offensive against terrorist and bandit groups operating in parts of Katsina State.

The task force’s Media Information Officer, Lieutenant Colonel Aliyu Danja, said in a statement on Monday that the operation, code-named “Clean Sweep,” commenced on June 14 as part of efforts to dismantle criminal enclaves and restore security in the region.

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Over 50 Bandit Attacks Recorded in a Week as FG Spends N57.78bn on Security

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The Federal Government spent N57.78bn on security-related projects and operations in the first four months of 2026, despite worsening insecurity across the country, with no fewer than 98 criminal incidents including 51 attacks and abductions recorded nationwide in just one week.

Data obtained from the Open Treasury Portal showed that the spending, which covered defence equipment procurement, security infrastructure, military barracks, police facilities and other security-related projects, represented a 127.97 per cent increase from the N25.35bn spent during the corresponding period of 2025.

The expenditure comes amid persistent attacks by terrorists, bandits, kidnappers and armed criminals across several states, raising concerns among security experts over the effectiveness of government efforts to tackle the crisis.

Analysis of the Treasury Portal data showed that N57.78bn had been spent as of April 2026 from a total security allocation of N4.66tn, indicating that only 1.24 per cent of the approved budget had been utilised within the first four months of the year.

The largest share of the expenditure, N21.39bn, was spent on defence equipment procurement, accounting for about 37 per cent of total security spending during the period.

Another N14.16bn was spent on security equipment, while N5.84bn went to the construction and provision of military barracks. The government also spent N5.17bn on police stations and barracks, N3.26bn on rehabilitation of defence equipment, N2.39bn on defence facilities and N2.16bn on repairs of military barracks.

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For routine operations, N3bn was spent on security services, while N320.94m was disbursed as security votes.

However, no expenditure was recorded under the military operations budget line tagged “Operation Lafiya Dole and Other Operations of the Armed Forces,” despite a N500m provision in the 2026 budget.

Similarly, no funds had been released for the kitting of Armed Forces personnel, although N2.53bn was earmarked for the programme.

A year-on-year comparison showed that spending on defence equipment rose from N9.48bn in the first four months of 2025 to N21.39bn in 2026, while military barracks construction increased from zero to N5.84bn.

Despite the increase in spending, budget implementation remained low across most security projects, with many critical programmes recording execution rates below three per cent.

The spending figures emerged as a police security report obtained by The PUNCH revealed that at least 98 criminal incidents were recorded across Nigeria within the last seven days.

The report showed that the incidents comprised 37 homicide cases, 27 banditry attacks, 24 kidnappings, eight armed robbery incidents and two terrorism-related attacks.

The incidents were reported across Kaduna, Katsina, Zamfara, Kebbi and several other states, involving mass abductions, attacks on rural communities and kidnappings along major highways.

Among the most disturbing incidents was the abduction of 39 residents in Zamfara State after they reportedly travelled into the Fadama Forest to negotiate peace with a notorious bandit leader, Jimo Smally.

In Katsina State, bandits blocked the Katsina-Kankara highway and intercepted a commercial vehicle carrying 11 passengers. Police later rescued nine victims, while the driver and another passenger remained missing.

Reacting to the development, security analyst, Lekan Jackson-Ojo, described the situation as the worst insecurity crisis in Nigeria’s history.

“This is the highest level of insecurity in the military and political history of the Federal Republic of Nigeria,” he said.

“It is an indirect pronouncement that Nigeria is an unsafe territory now. We are having a battered economy, and there is no economy anywhere in the world that thrives under insecurity.”

Jackson-Ojo said the country had suffered unprecedented security losses in recent months.

“During the civil war, I did not remember if a general died. In the war between Ukraine and Russia, a general has not lost his life. In the war between Iran, America and Israel, a general has not lost his life. But within the past three months, we have lost almost four generals — and there is no reprisal attack,” he stated.

The analyst also criticised the reintegration of repentant terrorists into society.

“I’ve never heard it anywhere in the world that terrorists who have terrorised, damaged and killed will be integrated back into society. To me, I think the government is totally helpless — total incapability, lack of political will. Something, or many things are wrong now,” he added.

He further lamented what he described as the political elite’s preoccupation with electoral activities rather than security challenges.

“What preoccupies our political class is campaign, campaign, campaign and campaign. This is a sad situation,” he stressed.

Another security analyst, Chidi Omeje, argued that the military remained overstretched despite increased government spending.

“The military, on their own, are completely overstretched. You can count almost over 30 terrorist operations in this country where military guys are deployed,” he said.

“One MRAP alone is almost N100 billion. If you put an aircraft in the sky to do an operation, do you know how much it costs for just one hour? By the time you put that N56 billion in dollars, it amounts to nothing.”

According to him, military operations alone would not solve Nigeria’s security challenges.

“Unless we are able to deal with the root causes, we will keep going in circles. Most of the issues are born out of bad governance, wrong prioritisation, corruption and pervasive poverty, which has made people see crime and criminality as an option for survival,” Omeje said.

He also blamed porous borders and instability across the Sahel region for worsening insecurity in Nigeria.

“From Mali to Burkina Faso to Nigeria — those places are the epicentre of terrorism. Nigeria is an attractive destination because we have porous borders and poor border management,” he stated.

Omeje urged the government to take decisive action.

“The government seems almost clueless about how to go about this matter. They are paid to find solutions — so they must find solutions,” he said.

The latest figures suggest that while the Federal Government has significantly increased security spending compared to last year, insecurity remains widespread, with violent attacks continuing across the country and a large portion of budgeted security funds yet to be utilised. (PUNCH)

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