Senate, House disagree on host communities as PIB is passed

The Nigerian legislative arms, the Senate and the House of Representatives, finally passed the nation’s much-awaited Petroleum Industry Bill (PIB), on Thursday, but not without the usual political intrigues.

Already, the Niger Delta host communities have repudiated the various versions of the bill as passed by the two arms of the National Assembly, especially as it relates to compensation to be paid to host communities.

The Senate gave the host communities three percent equity holding in Host Communities Trust Fund while the House of Representatives approved five percent. The host communities had demanded for 10 percent for the people of the oil-producing areas.

National President, Host Communities of Nigeria Producing Oil and Gas (HOST ON), Chief Benjamin Tamanarebi said it was insulting for the Senate and House of Representatives to cede only three and five per cent equity shareholding, respectively, to the oil and gas producing communities in the PIB, just passed.

Another controversial area was the fund exploration of frontier basins, which the Senate left at 30 percent, while stakeholders in the Niger Delta had demanded that it should be reduced to 10 percent.

Both the Senate and Reps agreed that the Nigerian National Petroleum Corporation (NNPC), should become a limited liability company.

This came as the Presidency described the passage of the complete version of the PIB, which had defied passage in previous assemblies, over the last 20 years, as a jinx that had indeed been broken.

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The original bill brought to the Senate by the Executive was 2.5 percent for funding of the Host Communities Trust Fund, but the Senate committee moved it to five percent, but the Senate at the end of the day approved only three percent.

The Senate report read, “This chapter highlights the effective and efficient administration of the Host Community Trust Fund which is to be anchored by the settlor, i.e. the oil and gas companies operating in the host communities.

“The various recommended provisions when passed into law will ensure a peaceful operating environment that will have a positive direct impact on the cost of oil and gas production which has been the bane of the Nigerian oil and gas industry.”

Earlier, the senators had a closed-door meeting with the Minister of State, Petroleum, Timipre Sylva and Group Managing Director of the NNPC, Mele Kyari, who briefed them for over one hour on the technical and financial details of the Bill before the consideration of the report.

After the consideration of Report of the Joint Committee on Petroleum (Downstream) Petroleum (Upstream) and Gas Resources Petroleum Industry Bill, 2021 (SB. 510) laid by the Chairman, Senator Sabo Mohammed (APC, Jigawa – West), the Senate approved funding mechanism of 30 percent of NNPC Limited’s profit in oil and profit gas in the production sharing, profit sharing, and risk service contracts to fund exploration of frontier basins.

With this development, 30 per cent of profits accruing from oil and gas operations by the NNPC, is now to be set aside for exploration of oil in the frontier basin.

It means that all exploration of frontier basins shall fall under the purview of the Upstream Regulatory Commission.

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The Senate also passed that as part of moves to strengthen the accountability and transparency of NNPC Limited, it will now be a full-fledged CAMA company under statutory/regulatory oversight with better returns to its shareholders, the Nigerian people.

On Petroleum Industry Fiscal Framework, the Senate passed the Bill as part of moves to attract and unlock the long-awaited capital investment inflows to the country’s oil and gas industry since it contains enhanced incentives in the land, swamp, shallow and deep waters terrains. Provisions have also been made for better and attractive tax incentives to achieve this goal.

Before the passage of the PIB, Senator Ahmad Kaita (APC, Katsina North) stirred controversy, when he called for an amendment to the recommendation by the Senate Committee from five percent to three percent in line with the explanation of the GMD, NNPC during the closed-door session.

Vanguard reports that when the President of the Senate, Senator Ahmad Lawan, put the question for a voice vote and despite resounding nays, passed in favour of the ayes, however, generated noise in the chamber as some senators, majorly the South South senators were uneasy with the ruling.

At that point, Senator James Manager (PDP, Delta South) called for another vote opposing the initial vote as he proposed an amendment to retain the provision of five percent in the report but he was defeated.

Senator George Sekibo (PDP, Rivers East) raised a Point of Order 73 of the Senate Standing Rules as amended, calling for a division of the Senate.

According to Sekibo, the order challenged the ruling of the chairman (Lawan) and requires that he put the question to vote a second time. If his opinion was again challenged, he shall call each Senator’s name to vote.

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Lawan, who was apparently apprehensive of the consequences of embarking on a division, swiftly resorted to pleading with Sekibo to withdraw his motion.

This time, the Senate Leader, Senator Yahaya Abdullahi (APC, Kebbi North) appealed to Sekibo to withdraw the order.

At this point, the President of the Senate who also pleaded with Sekibo to drop his division point of Order said, “We are representatives of the people before anything. I just want to remind us of what we know that we represent, we legislate and oversight.”

After listening to them, Senator Sekibo who withdrew the point of Order said, “Mr President, you know naturally we have known ourselves in this chamber from 2007, and I also know that it is the privilege of all parliamentarians all over the world to call for division when he feels the need.

“As the Senate President, if you appeal to me on something that is personal and I did not take it, you will not be delighted but no I will say something.

“For I’m asking for is not for me as a person but it is in the interest of the nation because when we pass a good law, we must also have a good environment to implement the law.

“If the environment is not conducive for implementation, we will all come back to redress it. My appeal to you that you increase the number a little bit. I have withdrawn while appealing to you.”

In his concluding remarks after the passage, Lawan who noted that the passage of the PIB was an indication that the “demon” behind its non-passage in the past had been finally defeated, said, “The 9th Senate and indeed the 9th National Assembly has achieved one of its fundamental items on the legislative agenda.”

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Before the consideration of clause by clause of the report and passage, the Deputy President of the Senate, Senator Ovie Omo- Agege who spoke in his capacity as the Senator representing Delta Central had pleaded that the host communities fund should be above five percent as earlier recommended by the committee.

The piece of legislation from the Executive is about 20 years old in the National Assembly.

Previous attempts to pass the bill into law by the former Assemblies hit the brick wall due to variegated interests from high and mighty.

Moving the motion earlier for the consideration of the report, the Chairman of the House Ad-hoc Committee on PIB, Mohammed Mongunu, said by passing the bill into law, the House would have written its name in gold.

Speaking after the consideration of the report in the Committee of the Whole chaired by the Deputy Speaker, Ahmed Wase, the Speaker, Femi Gbajabiamila, hailed the House for achieving the feat.

“I want to commend the 24 wise men and the 360 members in producing this 318 sections law. In the coming week, the Electoral Amendment bill will follow suit.

“By the time we are done, irrespective of which side of the divide you are, this 9th House would have done us proud,” he said.