PIB: Reps square off on definition of host communities

Members of the House of Representatives on Thursday approved a clause in the Petroleum Industry Bill to include the entire country as ‘host community’ of petroleum resources.

This created tension in the chamber as members argued for and against the submission, that all “upstream and downstream ” communities in the country would now benefit from the‎ “Petroleum Host Community Fund” (PHCF) proposed in the PIB.

In the original version of the bill from the Executive, the PHCF was proposed to assist cushion the effects of oil exploration activities on oil producing communities.

Oil companies, according to the bill, are to contribute 10 per cent of their net profit to the Fund.

However, the House AdHoc Committee on the PIB amended the beneficiaries of the PHCF to include all parts of the country rather than restricting it to oil communities alone.

Chairman of the committee, Mr. Ishaka Bawa, told members that communities with refineries or that have oil pipelines traversing them, were automatically “host communities.”

 “It is beyond oil producing communities. “

Bawa stated further that the only exceptions were states like Sokoto and Kebbi.

Although, the House passed the recommendation, it was not without some protests.

Some Niger Delta lawmakers, led by Mr. Leo Ogor, sought to retain the original proposal.

Ogor argued that the recommendation of the committee might face challenges of implementation because of what he called “many technicalities that will hinder progress.”

He insisted that the House should restore the original provision, but his position was defeated ‎by the majority of members, who backed the community’s recommendation.

The House also reduced the 10 per cent contribution to the PHCF to 7.5 per cent.

But, oil companies are still required to carry out corporate social responsibilities in host communities to make up for the reduced financial contribution.

The 368-page report has 312 sections and 348 clauses.

By Thursday, members had passed 116 clauses at the Committee ‎of the Whole, which was presided over by the Deputy Speaker, Mr. Emeka Ihedioha.

The House later adjourned further consideration of the bill till Tuesday next week.

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