PIB: The Petroleum Industry Bill Has Been Dropped
In a closed-door session that lasted for an hour, members of the House of Representatives have resolved to revoke the contentious Oil Industry Bill.
Before that, South-South legislators expressed their dissatisfaction with the harmonized 3 percent PIB allocation for host communities.
A chorus of “five percent” could be heard from the chamber, in opposition to the 3 percent specified in the Petroleum Industry Bill.
Senators expressed dissatisfaction with the allotment of 3 percent of the budget to host communities, but the Senate ultimately agreed.
Specifically, the percentage of operating expenses (OPEX) for which oil corporations are required to contribute to a Trust Fund for Host Communities is the subject of contention.
Two Southern Senators, George Sekibo and Seriake Dickson spoke on the matter.
Senator Sekibo stated that he did not participate in the voting on the allocation provision, while Senator Dickson stated that his privilege had been infringed because the allocation provision did not reflect his views.
Senate President Ahmad Lawan, on the other hand, claimed that the Senate had already adopted a resolution on the subject and would not be able to return to the issue.
A paragraph about the host community allotment was one of the provisions that is yet to be determined after the PIB was approved by the National Assembly earlier this month.
The Petroleum Industry Bill has as its primary goal, the acceleration of progress in Nigeria’s petroleum industry.
Compared to the 13 percent derivative fund that is paid from the federation account to oil-producing towns, the 3 percent is a significant difference.
The actual yearly operational costs of a business in the upstream, midstream, and downstream sectors will be utilized to determine whether or not the three percent allocation will be realized.
Every donation will be deposited into a trust fund for the benefit of host communities.
According to the PIB proposal, the trust fund will help to enhance relations between oil companies and the communities where they do business.