The year 2021 has been eventful with a lot of political activities in Nigeria. The year is not without a series of controversies that rocked the nation as a result of the decisions of the lawmakers.
The passage of the Petroleum Industry Bill (PIB) in July by the National Assembly after over two decades of failed attempts generated a lot of controversies in the country.
At some point, the stakeholders rejected the bill and mandated the lawmakers to rework the contentious part where 3% of the oil revenue was approved for the host communities.
Bone Of Contention
The Petroleum Industry Bill was aimed at solving the lingering challenges in the oil and gas sector but other aspects of the bill were ignored and the focus was on 3% allocation of oil revenue approved for the host communities in the Niger Delta against the earlier demand of 10% percent of the stakeholders.
The bill further generated heated arguments when 30% percent of the oil revenue was approved for oil exploration in the northern region known as a frontier basin. With the approval of 30% for the frontier basin, the lawmakers from Niger Delta vehemently opposed the 3% allocated for the Host Communities on the ground that the Niger Delta deserves more than the 3% allocated to it.
The southern Governors under the aegis of the Southern Governors’ Forum also rejected the 3% allocation of the oil revenue allocated to host communities.
Some influential stakeholders in the host communities like former Provost Marshal of the Nigerian Army, Brigadier-General Idada Ikponmwen (retd), kicked against the 3% allocation of the oil revenue to the host communities. He argued that the 3% allocated to the host communities is an open invitation to anarchy and lamented that despite the abundant oil wells in their land, 30% is embarked on exploration of oil in northern Nigeria.
While the controversy was ongoing, the Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, revealed that the 3% allocated to the host communities is more than the 30% allocated for oil exploration in the northern region.
With the explanation of the Group Managing Director of NNPC, it was learned that the 30% allocated for the frontier basin is about $400 million per annum while the 3% allocated to the host communities in the Niger Delta is about $500 million annually.
Although, Kyari’s explanation did not solve the growing agitations against the bill as some Niger Delta groups and elders continued with their protest against the bill.
Amidst stiff opposition and controversies surrounding the PIB, it was eventually signed into law on August 16, 2021, by President Muhammadu Buhari to address the challenges in the oil and gas sector.
SOURCE: news-af.feednews.com