By John Ikani
The Federal Government has again assured of its resolve to engage oil producing host communities in the Niger Delta on issues regarding the 3 per cent of operational costs allocated to them in the recently passed Petroleum Industry Bill (PIB).
Minister of State for Petroleum, Timipre Sylva gave the assurance in Abuja when a group of Ijaw elders, leaders and critical stakeholders visited him to congratulate him on the passage of the PIB after 13 years in the National Assembly.
Speaking during the visit, Sylva noted that he has secured the commitment of multinational oil firms to relocate their operational headquarters to the Niger Delta region shortly after the presidential assent to the PIB.
The minister who lamented the mismanagement of other funds allocated to the region because of its huge crude oil deposit, also decried the situation where communities in the Bonny Island could not access funds paid to them by the Nigeria Liquefied Natural Gas Company (NLNG).
He also warned that the end of petroleum-based economy would be devastating for the nation, if alternative source of wealth for the nation were not sought after.
What the minister said
“Our main challenge is resource management. If we manage all the money coming to the Niger Delta, NDDC, 13 percent derivation, three percent host communities fund and even the one from the amnesty programme, we won’t have some of the issues currently confronting us.
“Today, I can tell you authoritatively that we are on the last mile of the oil economy. Economies around the world are now discussing renewable fuel.
“We must understand that very soon we might wake up and find out that oil is not as valuable a commodity as we thought before.
“Coal did not finish before the world moved away from coal. There is still a lot of coal deposit in Enugu today, but if you give some of it to someone, he might not appreciate it because the world has moved away from coal.
“We must support every effort to ensure that the oil we have today is produced and sold so that we can get the benefits.”
What the elders and stakeholders said
Earlier, the 33-member delegation led by Chief Timi Kay Ogoriba commended the minister for the introduction of unprecedented massive reforms in the petroleum industry, especially the radical expansion of the gas sector.
On the PIB which had lingered for about 20 years, the delegation lauded the minister for handling the herculean task of working with the 9th National Assembly towards its eventual passage.
The elders and stakeholders however advised that it is necessary for Government to sustain its enlightenment efforts as regards the 3 percent component of production costs standing as host Communities Development Trust Fund in the Bill, emphasizing that knowledge and understanding of the magnitude of socio- economic benefits the trust fund guarantees would go a long way to assuage fears and concerns.
They also decried the unhealthy tradition of always fighting to pull down our Sons and Daughters in public Offices, opining that the best way to go is to support our representatives at all levels to succeed.
