PIB: Anger as Senate slashes host community share to 3% of oil profit

At long last, the Senate yesterday passed the much-awaited Petroleum Industry Bill (PIB), with 30 per cent of profits accruing from Oil and Gas operations by the Nigeria National Petroleum Corporation (NNPC) now to be set aside for exploration of oil in the frontier basins.

All exploration of frontier basins shall fall under the purview of the Upstream Regulatory Commission. Similarly, three per cent has been reserved for the development of host communities.

However, the Senate reached these decisions amid uproar due to disagreements on the right percentage of oil revenue for host communities.

The report of the Senate Joint Committee on Petroleum, which processed the bill, had proposed five per cent for host communities, while stakeholders had in the original bill proposed 10 per cent. But when the Senate began clause-by-clause consideration of the bill, it was reduced to three per cent.

The decision caused a moment of stalemate as Senators from the Niger Delta region rose against it. Senator James Manager (Delta State) proposed an amendment to retain the provision of five per cent in the report but he was defeated.

As Senate President Ahmad Lawan hit the gavel to re-confirm the three per cent host community provision, Senator George Sekibo ((River State) called for a division. His motion challenged the ruling of the Senate President and the floor again became tensed up.

Fearing the consequences of embarking on a division, the Senate leadership swiftly resorted to pleading with Sekibo to withdraw his motion. Senate leader, Yahaya Abdullahi, said the Senate would be ‘heading to Armageddon’ if it allowed that division to happen.

Lawan also supported the Senate leader and preached the gospel of patriotism to Sekibo who later agreed and withdrew his motion.

Chairman of the Senate Joint Committee that processed the bill, Sabo Muhammed Nakudu (APC, Jigawa West), while presenting the report explained that “the Joint Committee’s recommendation recognises the need for the country to urgently and aggressively explore and develop the country’s Frontier Basins to take advantage of the foreseeable threats to the funding of …