Adedapo Adesanya
By Adedapo Adesanya
The House of Representatives has stepped down the controversial Petroleum Industry Bill (PIB) after an hour-long closed-door session.
Further deliberation is expected to hold over the decision while the House is on recess.
This followed an earlier clamour from South-South lawmakers, who opposed the harmonised PIB allocation to host communities which was pegged at three per cent, asking for five per cent.
Meanwhile, at the Senate hearing on Thursday, the three per cent 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.
However, at the upper chamber, two southern senators, Mr George Sekibo and Mr Seriake Dickson, raised concerns over the approval.
Mr Sekibo said he was not part of the vote on the allocation clause and Mr Dickson said his privilege had been breached as his views were not accommodated.
Giving a response, the President of the Senate, Mr Ahmad Lawan, replied that the body 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. It looks to give three per cent from an entity’s actual yearly operating expenditure of the preceding financial year in the upstream, midstream and downstream sectors to a host community.
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.
