By Chioma Iruke
The harmonised Petroleum Industry Bill (PIB) which was produced by a conference committee of both chambers of the National Assembly last week, was today passed with a 3% equity share for host communities.
Prior to the approval of the proposed legislation through voice votes, senators from the South-South geopolitical zone protested against the proposed 3% equity share for the host communities.
President of the Senate, Ahmad Lawan, however, prevailed on Senator Seriake Dickson to back down on his threat to lead his colleagues to stage a walkout.
An investigation conducted by our correspondent on Wednesday had revealed that both chambers of the National Assembly might have agreed to approve 3% as equity share for the oil host communities in the country.
A member of the conference committee had told our correspondent in confidence on Wednesday that the agreement was reached after a heated debate.
He had said, “The National Assembly may stick with the 3% equity share for the host communities, when the Petroleum Industry Bill is eventually laid and discussed on the floor of both chambers tomorrow (Thursday).
“You will recall that when both chambers of the National Assembly deliberated on the PIB report, the House of Representatives approved five per cent while the Senate gave three per cent.
“Our committee adopted the Senate recommendation of three per cent for the host communities.”
It would be recalled that the Senate had argued during the consideration of the report, that the 3% amounted to half a billion dollars.
Explaining why the 5% was reduced to 3% shortly after the plenary, the Chairman of the Senate Committee on Petroleum Resources (Downstream), Senator Sabo Mohammed Nakudu, had explained that the earlier percentage which was 2.5 was increased to 5%.
He had added that it was reduced after the Group Managing Director of NNPC, Mele Kyari explained that 5% was a huge amount of money.
He had added that the enabling environment needed to be created to attract investors because fossil oil was fast going out of fashion.
Also, the Senate spokesperson, Senator Ajibola Bashiru had said, “On the three per cent that was approved for the upstream operating expenditure, from the projection made by the NNPC GMD, who briefed us, it will amount to $502.8m for the host community development fund.
“The initial projection was 2.5 per% and it was increased to 3 percent. The caveat is that we can always amend the bill as time goes on.”
The harmonised version of the PIB was submitted for consideration by the federal lawmakers on Thursday at plenary.
