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PIB: Groups queries marginalisation of host communities

By David Onimisi Lawani
In the wake of the recently passed Petroleum Industry Bill, PIB, by the Senate, Fiscal Transparency, CSOs, Connected Development, CODE, and OXFAM Nigeria, have raised concerns over key issues in the reviewed bill, especially the marginalization of host communities in the Niger Delta where oil exploration is domiciled

 

The groups said the reviewed PIB did not sufficiently address the grey areas affecting host communities and has stripped the oil regions of the management, governance and administration of issues that affect them directly. The bill suggests that the constitution of the host communities development trust shall contain provisions mandating the management committee to set up an advisory committee, which shall contain at least one member of each host community”.

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CODE who led the non-profit organization notes that the lack of adequate representation of the host communities in the advisory committee is an unfair approach that limits the ability of the trust to fully develop needs assessment and development plans that can only be designed by the people in the community themselves.

Expressing serious concern, CODE’s Lead on natural resource governance and the extractives, Dr Onyekachi Onuoha, stated that restricting host communities’ sense of ownership as pointed out in the gaps in the bill, would fuel agitation in the region as it shows a blatant disregard for the needs and priorities of the people that are the worst hit by the impact of oil exploration. “The Senate is dashing the hopes of people directly affected by oil pollution, terminated livelihoods and underdevelopment caused by environmental degradation and other disasters occasioned by oil spills in the Niger-delta region,” Onyekachi added.

Reps pass PIB, adopt 3% for host communities

He said the draft PIB proposed 2.5% of the annual operating expenses of the Settlor (operator of an oil license) to fund development in the area. Although the House of Representatives recommended 5% for settlors operating in the upstream and 2% for the settlors in the midstream and downstream sectors, lawmaker Sani Kaita from Katsina moved an amendment for it to be reduced to 3%, which the senate has adopted.

In addition to the call by the Deputy President of the Senate, Ovie Omo- Agege, for the funds from gas flaring penalties to be channeled towards developing affected communities, CODE & OXFAM urge the Senate to rethink the grey areas highlighted and promote a greater sense of ownership that is acceptable and fair to the host communities.

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