- It’s Satanic, unjust, embarrasing – E.K. Clark
- It’s totally unacceptable — UPU, Others
- HOSTCON Hails Passage, Asks NASS To Review Host Community Fund Quota
- Leaders Criticize 30% Provision for Oil Search In the Frontier Basins
Several provisions contained in the Petroleum Industry Bill, (PIB) passed into law by the National Assembly on Thursday, July 1, have come under a hail of criticisms from a cross section of leaders and stakeholders in the Niger Delta.
Recall the PIB was passed into law by both the upper and lower chambers of the National Assembly on Thursday after the Bill had suffered neglect and delay for nearly two decades.
While a section of the stakeholders in the Niger Delta were heralding the long-overdue bill which approved 3% of the annual budget of oil companies for the development of the host communities, others are of the view that the approved percentage was too small considering the environmental degradation and under-development that have been visited on the oil-producing Niger Delta for over six decades.
The New Diplomat has chronicled the reactions of some stakeholders and leaders from the Niger Delta who spoke to our correspondent on the controversial 3% contribution of the oil companies to the host communities.
The National leader of the Ijaw nation and Convener of Pan-Niger Delta Forum (PANDEF), Chief Edwin Kiagbodo Clark, described the PIB as passed by the National Assembly as satanic, unjust, embarrasing, noting it does not reflect the age-long clamour of the people of the Niger Delta.
Clark who addressed a press conference in Abuja, also condemned the earmarking of a whopping 30% of profits of the Nigerian National Petroleum Corporation (NNPC) for oil exploration in the frontier basins majorly in the north in the PIB, adding that it is a major source of concern, especially with the global rush to divert from fossil fuel into alternative energy.
The leader of PANDEF who was represented at the press conference by PANDEF Publicity Secretary, Ken Robinson, declared that the region has had enough of the colonial oppression and will continue to resist it.
He demanded for a reversal of the satanic clauses in the Bill or in the alternative, relocate oil companies from the Niger Delta region.
He said: “Given the depth of ingratitude expressed and delivered after decades of exploitation and neglect of the region, the entire people of the Niger Delta region, for and on behalf of the host communities, vehemently reject the following aspects of the bill:
“The 3% and 5% of Operating Expenditure granted to the Host Communities; The fraudulent and provocative 30% provision for the Frontier Exploration Fund.
“And now demand: The PIB must be reversed, reviewed and amended to ensure that the Oil-Bearing Communities must now receive not less than 10% of Operating Cost.
“If this is not done, the Niger Delta people may be forced to take their destiny into their own hands and all IOCs may find themselves denied access to their oil activities in such communities.”
Chief Wellington Okirika, former chairman of DESOPADEC decried the slashing of the host community fund to 3%. He, however hoped that the PIB passage would serve as a breath of fresh air to the oil-bearing communities.
“The passing of the PIB into law by the 9th National Assembly after nearly twenty years is victory for our people. As host communities that have been producing the wealth of this country, we have been marginalized by the past federal government and by the state governors. Why should it be so? Is it because the common people are not Nigerians and their rights can be trampled upon?
“They use the International Oil Companies to deal with the host communities as they are slaves? But we are the owners of the wealth of this country. It is very sad. Even when there are provisions for them in the Constitution, they are denied. Why? Surprisingly, most of the people who deny the host communities their rights are politicians from the area. Why?
“It is gratifying to note that during the time of President Muhammadu Buhari, the right thing is being done. And we urge him to complete the whole matter by assenting to the Bill early enough to kick-start its implementation. Whatever is due to the host communities should be given to them directly and not through any third party.
“Although the 3% given to the host communities is grossly inadequate but a journey of a thousand mile must start with one step. We have started the journey to regain our God-given possession and rights.
“The Senate approved 3% while the House of Representatives approved 5%. There should be a compromise. But the journey has started and the presidency, the governors and the lawmakers have realized that, in truth, the host communities are the producers of the wealth of the nation”, he said.
Dr. Mike Emuh, National Chairman of Host Communities, oil and gas, (HOSCON) in his reaction urged both the lower and upper chambers of the National Assembly to quickly harmonize on the host community fund by jointly reviewing it upward to 4%.
“The Senate offered 3% while the Green chamber offered 5% for the host communities. I think that a Committee will be set up to look into it and harmonize and possibly arrived at midway of 4%. But we are congratulating ourselves for the passage of the Bill and the consideration for the host communities.
“Whether the percentage is based on equity participation of the host communities or it is based on production quantum as we advocated before, we accept. We also accept the fact that we are going to have a Host Communities Commission to manage the percentage offered.
“So, I appreciate what the National Assembly has done and what the Presidency is doing. We are urging the President that there should be no delay in giving assent to the Bill as passed by the National Assembly so that the implementation can start immediately.”
In his own reaction, Prof. G.G. Darah, a Chieftain of PANDEF said: “It is a fait accompli. If the process of the passage of the Bill is completed agitation for increment of the provision for host communities will not yield much, unless the matter is taken up later.
“PANDEF insisted on 10% in agreement with the request of the host communities. It is inadequate but we can start from there. Agitation continues, it is a continuous process. You know that the real objective is 100% or resource control, not this little fraction. The ultimate goal is restructuring, fiscal federalism of 100% across the country. Not just oil and gas alone; all minerals. So, the struggle continues.
“To some extent, the 3% for the host communities is a reward for the persistent demand particularly by the environmentally destroyed and degraded oil producing communities. This law specifies oil and gas communities. They have not described what geography constitutes oil producing communities yet, but I’m sure the law will help us out in that regards.
“In my personal opinion, I have always said that host communities should not just be one community where the oil operation is localized but it should be a local government where that community is located. This is because if a community plays host to the operation an operation, oil refinery or gas flaring for instance, the oil or gas coming from below is not only in that community. It spreads across a wide field and it flows like a river. So, if the technicians working out the details utilize that kind of information, host communities will have an elastic definition. Some communities will suffer the injury from where the pipes are, other neighbouring communities will also benefit, but the percentage will vary.
“The 3% to host communities is an additional compensation. It does not replace the 13% derivation fund just like NDDC did not replace the 13%. You know our slogan in PANDEF is always “13% derivation is equal to 87% deprivation”. So, the federal government is still kidnapping 87%. And we will continue to strive until a true federal system emerges where states, local governments or kingdoms will have 100%. Then there will be an agreed tax to Abuja to run some federal institutions. That is the goal of our restructuring campaign.
On the modality for the implementation of the law, Darah said: “The draft of the law contains such details, of the management of that fund. They will constitute a technical body headed by people who are knowledgeable from among the host communities or area. That body will determine which project to implement. It is slightly different from NDDC in the sense that NDDC is a parastatal of the federal government and they send their own friends there. The people they send there are not necessarily people who support Niger Delta.
“But this one of host communities the draft shows that it is the communities that will name the members of the board. There will be a board for each community and they will name the members for that board. I think it is slightly going to be a different arrangement from the NDDC which is purely a political gambling,” Darah stated.
Hon. Ben Igbakpa, Member of the House of Representatives for Ethiope Federal Constituency said: “The PIB has been passed after several years, but it is not yet Uhuru. On the host communities funding, we started with 25% but these are the problems. We cannot get it all at once. The people from the other divide, the other part of the country think that that’s too much. And not just those people, the industry players, the international oil companies, the NNPC are saying that if that is what we are looking for, we might have oil but we might not have investors to invest in it. Everybody is going into the business because of the profit they are going to make. But if you going into a business and you are not going to make profit then it is no use going into it in the first place. So, they have dealt with the figures and they said it is not going to be feasible. That is what they have to brief us when we went into a close session with them. The 3% or the 5% as it is now is subject to the two chambers coming together to harmonize.
“As for the issue of the frontier, it is the fund that they want to create out of the annual profit of the operating oil companies and with that frontier fund, they can now explore new basins. There are so many basins which they want to explore if there is oil. The general thinking is that by the year 2040 oil can no longer form more than 50% of the country’s earning. And so the major players in the industry, the NNPC and ministry of petroleum resources recommended that there is the need to explore areas where there are oil deposits and exploit them now that oil is still sellable.
“To the host communities, the PIB will bring development because there is going to be a community development fund. There are going to be communities committees that will manage the fund for the development of oil producing areas.”
However, the Urhobo Progress Union (UPU) rejected the 3% funding provided for the host communities in the PIB, describing it as provocative and a pregnant elephant that gave birth to a mouse.
In a statement issued by the President-General of the socio-cultural organization, Chief Joe Omene, the group also described the 3% funding for the host communities as a continuation of decades of injustice to the People of the Niger-Delta.
The Union further described the clause in the Bill which provides for 30% of profits of the oil operating companies for oil exploration in the North as provocative and gross injustice to the people of the Niger Delta who produce the oil and gas.
He said: “After years of delays because of the insistence of the people of the region for a just and fair share of their resources with the demand for a minimum of 20% for host oil-bearing communities, what had been passed eventually as Petroleum Industry Bill (PIB) is a betrayal of lofty dreams after decades of legislative macabre dance and relentless conspiracies.
“A paltry 3% is what Northern lawmakers felt should be for the owners and host oil communities, a culmination of a game of wits between Southern Legislators who wanted justice for our people versus Northern lawmakers who connived with International Oil Companies (IOCs) and their principals to ensure those host communities must not be given the insulting and unacceptable 5% they initially offered.
“Even this unacceptable 3% is also redefined to include any pipeline bearing communities such as those areas in the north where oil pipelines pass through to convey petroleum products entitled to the same 3% that oil-bearing communities from where oil is drilled will be entitled. This is a ploy to use NNPC to channel a huge 30% of oil proceeds to the North.”
“UPU, having studied and reviewed the PIB as passed by the National Assembly against the background of the alienation of our people from the benefits of the exploitation of oil and gas in our communities for decades; And having considered the exploitation that continues while our region remains the most difficult place to leave and prosper despite the prosperity that oil wealth has brought to other parts of Nigeria, the UPU hereby joins the Oil-Bearing Host Communities in rejecting the 3% granted to Oil-Bearing Host communities and Pipe-line Bearing Host Communities. We restate our demand for a minimum of 20%. We reject the indistinct omnibus definition of host communities and other aspects of the bill.” UPU noted.
HRM Monday Whiskey, Ovie of Idjerhe kingdom, Ethiope West LGA, Delta State stated that “First and foremost, let me state it loud and clear the position of the oil producing communities in the Niger Delta, is that 5% is the minimum that they will take as far as the PIB is concerned. And that 5% is structured in such a way that there is no tax on that money and that the oil companies must deduct that money from their annual profit before tax and hand to the host communities. That money cannot be part of the JIV. It is just like the 13% derivation fund. Section 162(2) says 13% of total revenue, not 13% after external payments.
“The involvement of oil producing communities in the PIB will guarantee two things: security and peace, because it is your partner, it is a joint venture. And I don’t even think that the federal government needs to spend any money to protect oil facilities if you involve the communities.”
Meanwhile, PANDEF had in a communiqué issued after a meeting it held on Friday July 2, in Abuja, rejected the 3% approved by the Senate for the funding of the host communities producing oil and gas in the Niger Delta.
The group restated its long-held demand for 10% for the host communities, adding that unless the stakeholders in the region are given sufficient rights in the administration of the industry, there will always be conflict in the region.
The communique partly reads: “PANDEF recalls, and reiterates, that Host Communities, of the Niger Delta Region, had demanded 10% Equity participation, as against the percentages just passed by the National Assembly. And maintains its long-held logical demand that, unless stakeholders of the Oil and Gas Host Communities are given sufficient rights in the management and operation of the industry, conflicts in the oil-rich region may persist.”
The New Diplomat learnt that a Conference Committee will be constituted at the National Assembly to fine-tune and harmonize the differences between the House of Representatives and the Senate in some of the critical clauses contained in the Bill before presenting same to President Muhammadu Buhari for assent.
