By John Ikani
The House of Representatives has stepped down the report of the conference committee on the Petroleum Industry Bill (PIB).
Earlier in the day, lawmakers from the South-South had opposed the harmonised PIB allocation to host communities which was pegged at 3%.
The lawmakers were heard chanting “five percent” as against the 3% at the floor of the House.
The House had a rowdy session before the commencement of the plenary.
The Speaker, Femi Gbajabiamila, called for an executive session which lasted over one hour.
Upon resumption, the report, which was on the Order paper, was stepped down by the Chairman of the adhoc committee on PIB, Mohammed Monguno (APC, Borno).
The resolution to step down the report was passed during the Executive session to resolve the grey arrears bothering on the retainership of the 3% Host Community Fund and additional funding mechanism of 30% of profit oil and profit gas from Production Sharing Contracts (PSCs) in addition to the 10% of the rent from petroleum prospecting licences and petroleum mining leases to strengthen the country’s financial capacity to explore the frontier basins.
Senate passes harmonised PIB amidst protests
Meanwhile, in the Senate, the 3% allocation to host communities was adopted despite protests by the senators.
The number in dispute is the percentage of the total operating expenses (OPEX) oil companies are expected to contribute to a trust fund created for host communities.
Two southern senators, George Sekibo and Seriake Dickson raised concerns over the approval.
Senator Sekibo said he is not part of the vote on the allocation clause and Senator Dickson said his privilege had been breached as his views were not accommodated.
However, Senate President Ahmad Lawan replied that the Senate had taken a resolution on the matter and could not go back on its decision.
The host community allocation was one of the clauses left in consideration after the National Assembly passed the PIB earlier this month.
The PIB is expected to transform Nigeria’s oil industry.
The 3% is different from the 13% derivation fund which is paid to oil-producing communities from the federation account.
Instead, the 3% allocation will come from an entity’s actual yearly operating expenditure of the preceding financial year in the upstream, midstream and downstream sectors.
All contributions will be deposited in a trust fund for host communities.
According to a draft of the PIB, the trust fund will enhance peace and cordial relationship between oil companies and host communities.
