BREAKING: Despite protests, Nigerian Senate adopts 3% to host communities in PIB

The Senate on Thursday approved a three percent allocation for host communities in the Petroleum Industry Bill (PIB) amid protests from southern lawmakers in both houses of the National Assembly.

The host community allocation is one of the clauses left in consideration after the National Assembly passed the PIB earlier this month.

Instead of the passed 3 percent, southern legislators are requesting a 5 percent contribution from oil firms’ total operating costs (OPEX) for host communities.

It is important to note that the allocation in dispute is different from the 13 percent derivation fund which is paid to oil-producing communities from the federation account.

Instead, the three percent allocation will be based on oil companies’ actual yearly operational expenses in the upstream, midstream, and downstream sectors for the previous fiscal year.

All contributions will be placed in a trust fund for the benefit of host communities.

The draft of the bill had stressed that the trust fund will enhance peace and cordial relationship between oil companies and host communities

During plenary on Thursday, 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.

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Similarly at the House of Representatives session, Southern lawmakers could be heard chanting five percent in a bid to get legislation in their favour.

The chants continued even as the Speaker, Femi Gbajabiamila, walked in to commence plenary.

You will recall that the governors of Nigeria’s southern states had rejected the three percent share to host communities in the Petroleum Industry Bill.

A communique issued by the governors at the end of their meeting in Lagos on Monday, June 4, the governors called for a review and a five percent share to the communities.

The National Leader of the Pan-Niger Delta Forum (PANDEF), Chief Edwin Clark, had also aired similar disappointment.

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