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Designing a Climate Compatibility Checkpoint for Future Oil and Gas Licensing By Olasoji Fagbola

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Designing a Climate Compatibility Checkpoint for Future Oil and Gas Licensing By Olasoji Fagbola

by InsideOyo
July 19, 2025
in Opinion
0

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Across the world, there’s increasing pressure on the oil and gas industry to explain how the global shift to cleaner energy will affect their operations and long-term strategies. This is happening at a time when investment in the sector is slowing down not because it’s underperforming, but because governments, financial institutions, and even shareholders are pushing for stronger climate action and decarbonisation.

 

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Given this shift, there’s a strong case for introducing a climate compatibility checkpoint into Nigeria’s Petroleum Industry Act (PIA), making it a key part of the licensing process for oil and gas companies. This checkpoint would act as a gatekeeper ensuring that any future licences granted for exploration, drilling, or production are only approved if the proposed activities align with Nigeria’s climate goals.

 

The idea borrows from the concept of climate-compatible development, which simply means creating policies that reduce the risks of climate change while also supporting economic growth and development. For example, countries like the UK have implemented similar checkpoints to determine whether new oil and gas fields can proceed without undermining national emissions targets.

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For Nigeria, this means setting clear conditions: oil and gas companies must show how they plan to reduce emissions not just from their own operations, but across their entire value chains. It’s no longer enough to produce oil efficiently; companies need to prove that they’re investing in cleaner technologies, electrifying processes, reducing methane leaks, or even supporting carbon capture initiatives.

 

A key opportunity lies in accelerating the adoption of Compressed Natural Gas (CNG) as a cleaner, more affordable alternative to petrol and diesel particularly in transportation and small-scale industrial use. Expanding CNG infrastructure not only reduces operational costs for end users but also significantly cuts carbon emissions and improves air quality in urban areas. Incorporating CNG usage into the climate checkpoint criteria would further incentivize oil and gas companies to diversify their offerings and invest in cleaner fuels that align with Nigeria’s energy transition plan.

 

If Nigeria is serious about meeting its target of cutting greenhouse gas emissions by 50% by 2050 and reaching net-zero by 2060 then climate compatibility must become a non-negotiable standard for operating in the oil and gas space. CNG, as an available and scalable option, represents a practical step forward in that direction.

Olasoji Fagbola is a Sustainable Development expert, policy analyst with flair for Science Journalism.

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By Sulaimon Olanrewaju On Tuesday, June 26, 2018 in Ibadan, the Oyo State High Court corridors were filled not with lawyers in crisp suits, but with weary and worried pensioners clutching faded documents. Their faces told stories of decades of service in classrooms and council offices, now overshadowed by years of waiting. It was the hearing of a suit filed by the Nigeria Union of Pensioners (NUP), Oyo State Council, against the then governor of the state, Senator Abiola Ajimobi, and five other top officials of the state. The union had dragged the government before the High Court over ₦42.3 billion unpaid gratuities and pensions for retired primary school teachers and local government pensioners. The figure was staggering, but for the retirees, it was beyond mere numbers; it was meals they couldn’t afford, the medication they couldn’t access, the responsibilities they couldn’t meet, and the dignity they had lost. The union’s counsel, Lasun Sanusi (SAN), painted a grim picture of the pensioners’ plight before Justice Maruf Adegbola. He said: “Primary school teachers and local government pensioners are dying almost daily because they cannot afford medications for their health challenges.” The courtroom fell silent, the words echoing the desperation of thousands of senior citizens. Outside, the pensioners gathered in clusters, some leaning on walking sticks, others supported by their children. They spoke of promises broken, of agreements to pay arrears in instalments that never materialised. Representatives of the Nigeria Labour Congress stood with them, amplifying their cries for justice. Speaking at a press conference, the then state chairman of the union, Comrade Gbadegesin Akande, said the decision to institute a suit against the governor and others was a consequence of the roguish disposition of the government towards pensioners’ welfare, which resulted in the hoary heads, who had invested their youthful years in the service of the state, being subjected to agonising hardship and excruciating denigration. He explained that their recourse to the courts became a Hobson’s choice following the failure of the government to attend to the series of letters that had been written, endless pleas that had been made, and even countless protests that the union had embarked upon to get the government to address its plight. But despite their resort to litigation, not much changed for the pensioners; pensions were still owed and gratuities were still unpaid. At another press conference jointly addressed by the Secretary of the NUP, Comrade Segun Abatan, and the Secretary of the Association of Retired Primary School Teachers, Comrade Tunji Ogunwale, on May 4, 2019, the duo lamented the plight of pensioners and accused the outgoing administration of Governor Abiola Ajimobi of owing N62.5bn in pensions and gratuities. Speaking at the press conference, Comrade Ogunwale said: “Today, Oyo State Government is owing us N62.5billion. That is the amount of gratuities left unpaid. I am personally being owed 35 months pension arrears. They are owing some of us 60 months, some 55 and some 40 months. It varies from eight to 60 months. He (Governor Ajimobi) has never paid anybody any gratuity in the last eight years. If we had not gone to court, that means he would not have deemed it fit to pay a dime for eight years.” So, for pensioners in Oyo State, up to May 2019, life was rough, tough and torturous. It was marked by hardship, uncertainty, and indignity. Many retirees who had served the state faithfully for decades suddenly found themselves struggling to survive, as their pensions and gratuities were either delayed or paid in fractions. The government owed billions in arrears, and the elderly were left to bear the brunt of financial neglect. Their plight became a recurring headline, with protests and court actions reflecting the depth of their suffering. For many of these senior citizens already in the twilight of their lives, with children already grown and independent, there was no steady support system. So, feeding became a major challenge and getting money to buy the needed medication for their ailments became a nightmare. Many retirees sold property to survive, and some even died while waiting for what was theirs. The situation robbed many of them of the dignity and honour of old age. They were forced into begging or, for those of them who could muster enough strength, taking up menial jobs as security guards or gatemen. But when Comrades Abatan and Ogunwale held the press conference in May 2019, little did they realise how close the pensioners were to the change they had always wanted. On the 29th of that month, while being inaugurated as the Executive Governor of Oyo State for the first tenure at the iconic Liberty Stadium, Engineer Seyi Makinde made a promise that no longer would pensions be delayed or paid in percentages in the state. He then donated his entire salary as governor to the state for pension payment. He also promised to clear the backlog of unpaid gratuities. That marked the beginning of the end of the woes that retired civil servants had been subjected to over the years. Governor Makinde kept his promise to the pensioners and began the implementation immediately. While full pensions were paid alongside workers’ salaries, the governor, in 2019, approved the release of ₦500m monthly for gratuity. This was later increased to N1bn monthly in 2024, N1.5bn in 2025, and eventually N3bn monthly in January 2026. Till date, over N25bn gratuity backlog has been cleared with almost 5,000 retirees benefiting. Makinde did not stop at that. In 2020, during the COVID-19 pandemic, the governor approved the free enrolment of pensioners into the State Health Insurance Scheme, reaffirming the administration’s commitment to ensuring accessible and affordable healthcare for senior citizens. The governor also raised the minimum pension in the state to N25,000. In addition, Governor Makinde approved that all pension increases since 2007, such as the 33 percent pension increase of 2010 and the consequential adjustment of 2019, be factored into the pensions of affected pensioners. With that, Oyo State pensioners became the highest paid in the country. The consistency in pension payment and commitment to outstanding gratuity defrayment have transformed the life of many a pensioner. For many retirees, the moment they received their gratuity was life-changing. Mrs Modupe Akinola, a retired teacher said, “The day I got my gratuity, I cried.” She added, “It was like a burden lifted off my shoulders. I could finally repair my leaking roof.” Equally transformative was the prompt payment of monthly pensions. Unlike what it was in the pre-Makinde era, retirees no longer have to wait for months to receive fractions of their pension. Salaries and pensions are paid side by side, restoring confidence and stability. “I can now buy my drugs without borrowing,” said Mr. Adewale Oladipo, a retired civil servant. “Before, I used to skip medication because I couldn’t afford it. That nearly killed me.” To express their gratitude to Governor Seyi Makinde for his commitment to their welfare, members of the Nigeria Union of Pensioners, Oyo State Council, organised an appreciation rally in front of the Governor’s Office, Oyo State Government Secretariat in 2025. Speaking at the rally, the Secretary, Comrade Olusegun Abatan, said: "16 years before you took over the mantle of government in Oyo State, pensioners had no government that was sympathetic and empathetic to their plights. Gratuities were not paid as and when due, pensions of those times were withheld or paid in instalments and all entreaties to the governments fell on deaf ears, resulting in massive deaths of our members. "At one point, Oyo State pensioners were referred to as dead people and in actual fact, we were dying like fowls afflicted by Newcastle disease. When you contested for the first term, we just wanted anybody that would liberate us from the shackles of death and we went ahead to vote en masse for you. We did the same thing when you threw your hat into the ring for a second term....

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