After many years of foot dragging, the Senate on Thursday passed the Petroleum Industry Bill (PIB).
The bill did however not scale through without the usual drama on the floor of the senate. On what percentage of operating expenditure of oil companies should constitute funds earmarked for host communities’ development in the Bill was an issue.
The lawmakers finally agreed to 30 percent of oil and gas profits of the Nigerian National Petroleum Corporation Limited to fund oil exploration activities in frontier basins.
The passage of the Bill followed the consideration of the report of the Senate Joint Committee on Downstream Petroleum Sector; Petroleum Resources (Upstream); and Gas on a “Bill for an Act to provide Legal, Governance, Regulatory and Fiscal Framework for the Nigerian Petroleum Industry, the development of Host Communities and for related matters, 2021,” popularly called the Petroleum Industry Bill (PIB)
Senator Sabo Mohammed Nakudu, the lead Chairman of the Joint Committee, presented the report.
The Senate, after due consideration, approved that host communities would henceforth enjoy 3 per cent ($502.8million) of annual operating expenditure of oil firms to be contributed into the host community development trust fund.
Senate President Ahmad Lawan said the passage of the historic bill marks a watershed for the 9th Assembly, saying: “PIB demons have been defeated.”
However, Deputy Senate President, Ovie Omo-Agege, in his contribution, pleaded with the Senate to increase the 5 per cent proposed for the development of host communities in the Bill.
Omo-Agege said, “Today I speak not as the deputy Senate President but I speak as the senator representing Delta Central Senatorial District.
“For us in the Niger Delta there are three areas that are of much interest to us. I’m sure my other colleagues will speak to it.
“On the whole, the major thrust, the rationale for pushing for this Bill which has eluded this country for so many years is for us to get a law in place that will create an enabling environment for foreign investors coming with their money to invest in the sector before as we were told, our oil will go out of fashion.
“Some of us have this belief that no matter the thinking of the investment community, oil will always be relevant. Some of them have made the case that in the next 10 to 15 years, there will be no use for oil.
“Mr. President, this may be acceptable to a lot of people in this country but in my Senatorial District and indeed in most of Niger Delta, they are prepared to let this oil remain on the ground until may be another 40 to 50 years when there may be need for oil again.
“What does that mean? Mr. President, they want a deal but they want a good deal. Sometimes Mr. President, no deal could be better than a bad deal.
“Mr. President, when we raise these issues, I want to thank you most especially. I want to thank the Senate Leader and the leadership for the leadership role you played in arranging for our colleagues to meet and engage and come with some sort of accommodation.
“And Mr. President, this Bill as originally conceived provided only 2.5 per cent contribution by sector companies to the host communities trust fund. This is not the first experiment or first attempt.
“Mr. President, I will still make a case if possible that we go a little more than the five per cent already agreed.
“I understand we cannot meet the 10 per cent. But that is the clamour at home. I need to plead that if there is a chance we can go a little more than the five percent, we will be grateful.”
