By Mudiaga Affe, Kassim Omomia, Andy Asemota, Ben Ogbemudia, David Lawani and Cajethan Mmuta
A cocktail of disapproval has greeted the three per cent allocation proposed by the National Assembly for host communities in the Petroleum Industry Bill.

 

In fact, many stakeholders say the proposed bill is not only fraudulent and deceptive, but also insulting to the people of the oil-bearing communities.

The authorities, these concerned citizens say, should increase the percentage allocation in the bill so as to make more money available to the oil-producing communities.
Their criticism and demand come as the bill awaits final harmonisation by the National Assembly and eventual transmission to President Muhammadu Buhari for his assent.

The senate, had last Thursday, approved the bill believed to be the oldest piece of legislation in the annals of the country. The debate about the controversial bill has dragged on in the hallowed chambers for about 20 years.

At the consideration of the 318-clause-bill, the House of Representatives had earlier passed a five per cent allocation for host communities fund as against 2.5 per cent in the draft bill.

The Senate is currently enmeshed in a controversy over the figure it approved. At the committee of the whole, where it deliberated on the report, the senators only increased the fund by 0.5 per cent, bringing it to three per cent.

Naturally, the passage of the long-awaited bill would have brought succour to people of the oil-producing communities and states, but the people are saying the bill is not what they bargained for.

Oil-bearing states comprise Akwa Ibom, Rivers, Bayelsa, Imo, Abia, Ondo, Edo, Delta, but with the thinking of the National Assembly, host communities have been redefined to include communities where oil pipelines pass through.

Besides the three per cent allocation for host communities, stakeholders are worried about the redefinition of host communities to include any community where pipelines pass through.
According to them, the new arrangement smacks of deceit and fraud, particularly for oil-bearing communities who suffer the devastation of oil explorations.

Environmental and human rights activist, Anniko Briggs; a former President of the Ijaw Youth Council, Dr. Chris Ekiyor; President, Ijaw National Congress (INC), Prof. Benjamin Okaba; former Special Adviser for Arts and Culture in Edo State, Hon Orobosa Omo Ojo and a legal practitioner, Obukohwo Obarisi, among others, spoke on the issue.

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Why stakeholders are not happy
Okaba, who said the three per cent arrived at by the National Assembly was a paltry sum, added that it was a ploy to further enslave people who have over the years suffered the brunt of oil explorations.

According to him, the people of the region sought 10 per cent instead of the three per cent approved by the lawmakers.

Okaba said, “Just like the 13 per cent derivation for oil-producing states which is 87 per cent deprivation, in the same manner, this 10 per cent for the PIB that was drawn was to ensure peace, but the further reduction to three per cent actually shows that there is a ploy to enslave the rest of us, to impoverish us. The three per cent is not what we bargained for because even the 10 per cent was never considered as good enough.

“To worsen the whole situation, a redefinition is now given to host communities. Host communities are the oil-bearing communities and not where pipelines pass through. The pipelines are almost everywhere, which means that the three per cent we are even talking about will be distributed to all parts of the country and this may amount to maybe 0.2 per cent coming to the oil-bearing communities.”

The don, who said it would have been better the region never had the PIB than having a deceptive one, also queried other grey areas in the bill.

“It would have been better we never had a PIB. It is a deceptive proposal and I am ashamed of fellow Niger Deltas that are applauding it. I think it is due to ignorance or insensitive to the real nature of the bill.

“Again, they said some percentage will go to some front-line or bottom-line projects, where are these projects located? If you dig deep you will find out that 90 per cent of these projects are located outside the Niger Delta. So, the PIB that was intended to salvage the Niger Delta has turned out to be another way of impoverishing us and enriching people who do not have crude oil.

“Just like the other interventionist agencies, for instance, the NDDC, the major contractors are not from the region. Even for you to be appointed into the NDDC, you must have the nod of the people outside the region. The same thing with the Amnesty programme,” he added.

Briggs said that the Niger Delta communities were passing through difficult times occasioned by oil degradation.

She says, “The economic position of the region is the final say in the economy of Nigeria today because there is nothing else that brings in more money than the oil and gas in Nigeria. You cannot say that oil and gas belong to the federal on one hand and on the other hand say that gold and bitumen and any other things that are found in the north belong to the state that they are found in. It is ridiculous. And it is oppressive.

“It is looting of other people’s resources when you create states that are not viable with the sole intention of using the resources of another state to keep that other state viable. For example, Kano has 44 local government areas. It is not producing anything, even tax wise”.

Ojo, said the three per cent allocated to the host communities in the PIB was a collective indictment on members of the NASS.

The passage, he said, showed that lawmakers from oil-producing communities had missed an ample opportunity to draw attention to what their people faced daily.

He said, “The three per cent injected into the PIB is a huge and a collective indictment on all the members in both chambers. It is a referendum on them that they have failed in their capacity to represent the will and the interest of the South-South people

“I expected them to have used the opportunity to bring peace and harmony to the region that lay the golden eggs, especially with the fear of agitations from the host communities. If you ask me they have missed another great opportunity to show themselves as gallant people who believe in community development and harmony.

The three per cent that is allocated, if care is not taken, might be a recipe for more dangerous restiveness and agitations in the zone”.

Similarly, a Delta State-based lawyer, Obarisi, frowned on the content of the bill, saying it is a ‘coup’ against the south.

He said, “It was a ploy to further rob the south that produces the oil and pay the north that doesn’t produce a single drop of oil. First, the senate cut down compensations payments for host communities from five per cent to three per cent against the cries of southern senators.

“Second, the Senate has redefined host community to mean any community that oil pipeline passes through. By implication, host communities will now imply all states that don’t produce oil but have oil pipelines passing through it. This automatically makes some northern states that do not produce oil become host communities and henceforth benefit from compensations. Before now, host communities were communities that produce oil or have petroleum facilities/ installations in their land.

“Third, the Senate came up with a new fraudulent jargon called Frontier Exploration for which they have earmarked 30 per cent of NNPC profits to be servicing these frontier explorations yearly. Note that all the frontier exploration projects are domiciled in the North-Chad basin. So, automatically, 30 per cent or more (totally about 48 per cent) of NNPC profits will be going to the North that does not produce a single drop of oil, while the remaining will be shared by the federating states. Please tell me, what else is the best definition of fraud?”

“My big worry is that while many southern senators failed to stop this robbery of a bill on the floor of NASS, many southern Nigerians are busy celebrating the passage of this fraudulent PIB because they do not know the content of the bill. When the Joint session of Senate and Representative ratifies this bill, it becomes law once Buhari gladly signs off. From thence, the North will fight tooth and nail and resist any attempt to amend it.”

Describing the passage of the bill as historic, Chairman, Oil-Producing Host Communities in Edo State, Imatitikua, however, said the three per cent was an insult to host communities.

Imatitikua, who is also the President, Orhionmwon Youth Progressives added, “What can three per cent do to cushion the effects of the years of the degradation and despoliation of the ecosystem? Remember that a 10 per cent equity share was voted for host communities in the bill introduced by the late President Umaru Yar’Adua’s government at the time of the militants’ agitations for equity and fair share in the production quota.

“The same was one of the bargaining lines to check the restiveness of the people then. The members of this ninth senate seem to have forgotten so soon that the 10 per cent equity share for the host communities was one of the reasons why the aggrieved Niger Delta people reluctantly accepted the presidential amnesty.

“The Federal Government cannot renege on its promise now that the region is peaceful. It is ridiculous that the Senate approved in the bill a whopping 30 per cent for the NNPC to explore oil across the country.

“So, the Senate is more concerned about what they never see than what we have? The host communities should continue to suffer from the environmental abuse occasioned by the oil exploratory activities without any environmental re-mediation?

“The communities should continue to suffer neglect and marginalisation on the altar of national infrastructure development without their interest being protected by the petroleum law? The house joint committee should look into the danger in passing the bill into law.

“Niger Delta people need nothing less than 10 percent equity share as originally agreed. The National Assembly should strive to consider the interest of the people who bear the brunt in passing the PIB. Three per cent will surely resurrect agitations in the region.”

Also, Ekiyor kicked against the three per cent given to host communities, saying his people were not happy about it.

“We are talking about the people who suffer degradation as a result of the direct impact of neglect. We must begin to change the strategies of this top-bottom approach and embrace the bottom-top approach.

“The only solution is that the National Assembly should adjust it and make it meaningful. They shouldn’t take us for a ride. They can’t take our oil resources and develop their places and give us a paltry three per cent. It is not fair. If they are honest and want peace, they should reverse the injustice they have done. They should stop maltreating the minority groups in the country.

“I don’t know if our lawmakers were sleeping. We should be mindful of those we send to the state and national assemblies. We shouldn’t send people who are going to look for money only. We should send people who love their areas and this country. We, in collaboration with the governors, recommended 10 per cent. We still insist that is the minimum that is good enough for the host communities,” he added.

Lawmakers’ perspective
However, speaking to one of our correspondents, House of Representatives member, Johnson Oghumah, explained that the House negotiated and agreed on five per cent as the acceptable minimum.
The figure, he said, was arrived at to guarantee peaceful coexistence between the operators and the host communities.

“Five per cent is what we negotiated and agreed in the House. For me five percent is the acceptable minimum, considering that the smooth implementation of the bill when assented by the President will depend on the peaceful coexistence between the operators and the host communities” he noted.
Also, a member of the PIB ad-hoc committee in the House of Representatives,Kingsley Chima, said the bill would not only get more funds for the Niger Delta but will bring stability and provide security within the region.

The lawmaker from Imo State added,“So, we would not have a situation where the host communities would say that they did not get their due share from oil exploration. So, this fund would be sent to the host communities, deductible from the source. What it means is that you do not need to go begging for the money to be released to you”.

Noting that the current mood in the region was joyous, he explained that the affected communities would now be active participants in activities of oil exploration.

Explaining the provisions of section 240, which deals with the host communities and the fund, Chima said the section gave host communities the impetus to participate in their resources.

He noted, “What this means is that five per cent of the operational cost by oil companies have been exclusively reserved for the host communities and by host communities. The five per cent would no longer be sent in a proxy. These monies would be sent directly to a fund which would be established by the same host communities, and which will be managed by the same host communities.”

Another House of Representatives member, Dennis Idahosa, said there were encumbrances that stood in the way of the previous assembly to pass the bill.

Idahosa, who is the House Committee Chairman on Legislative Compliance, said development in the nation’s oil industry had been bedevilled by failure to enthrone competitiveness in the industry.

He noted, “I must commend both chambers of the NASS for making true its promise to pass the bill within the life span of the ninth assembly. Not only is the bill passed, but the encumbrances that had stood in its way were dealt with. The all-encompassing bill had the inputs of all stakeholders.

“Again, as I have always said that working in tandem with the executive is a sure way for Nigerians to enjoy the dividends of democracy. This has been demonstrated by the ninth assembly. We don’t need to rock the boat to make a statement. Ours is to see that the people we represent get what is due them. So, we will continue to work in harmonious relationship with the executive and always point out their areas of default.

Also, a national commissioner representing the South-South in the Police Service Commission, Austin Braimah, said the outcome of the bill should be accepted.

He said, “After so many years of struggling to put this PIB in place, why can’t we be pleased with this outcome. Even if this is half bread, it is better than none. Like the constitution, every aspect of it cannot be justice. It must continue to go through reforms of judicial interpretations and amendments.

“The present PIB can be improved upon as we operate it. It is wrong for anyone to say that it should not be signed just because a section of it did not completely meet the needs of the host communities. With time, we can push for an increase in that section. You don’t throw away the baby with the bathwater”.

How Senate arrived at three per cent
During the passing of the bill, Chairman of the Senate Joint Committee on the bill, Sani Mohammed Nakudu (Jigawa South West), the co-Chairman of the Joint Committee, Senator Albert Bassey Akpan (Akwa Ibom North-East), and the Senate Minority Whip, who is also the Vice-Chairman (Downstream), Senator Philip Aduda (Federal Capital Territory, FCT), dismissed the allegation of bias against the host communities in the oil-producing states.

Nakudu said the three per cent to the host communities would translate to over half a billion dollars annually from the oil and gas companies besides other incentives from the government.

He added that the three per cent would inspire more firms to invest in the nation as they would be assured of a reasonable return on their investments.

Speaking Akpan described the three per cent as a bold statement to the global oil and gas industry in the country. He added that the initiative would attract global competitiveness and the desired investment in the country’s oil and gas sector.