Full account of stakeholders’ views on ‘why host communities rejection of 3% development fund is needless’
Analysts and other stakeholders in the Nigeria’s multi-billion dollars oil and gas industry have upgraded forecast for country’s oil prosperity over the passage of Petroleum Industry Bill (PIB), calling on President Muhammadu Buhari not to delay the Presidential assent to the bill.
They, in separate interviews with Platforms Africa, expressed optimism that reforms needed to grow the sector would happen following the last Thursday’s passage of PIB into law by the National Assembly.
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Energy Policy Analyst, Adeola Yusuf, told Central TV, TV Continental (TVC) and Radio One in separate interviews monitored by Platforms Africa in Kenya that he, based on tremendous benefits of the bill to the nation, expected no delay in Presidential assent.
“The bill is both an executive bill as well as a legislative bill. The President is fully aware of the benefits of its passage and no one expects delay in Presidential assent to the bill,” he said on Central TV flagship news.
“The PIB, which has been in the making for 20 years would replace the obsolete Petroleum Act of 1969,” Yusuf, an energy editor whose investigative reports on oil and gas have won several international and local awards, told TV Continental (TVC).
“There are still two levels of necessity before the PIB goody bag can be delivered to Nigeria. The first one is the need for reconciliation of differencies in the two versions passed by the Senate and the House of Representatives. The second, which is equally important, is the Presidential assent.
“A version of the bill on governance, Petroleum Industry Governance Bill (PIGB) was about 4 years ago passed but was not assented to by the President. The concerns raised by the President then must have been addressed in the new bill. Everyone is awaiting his assent to the bill, which is one of the answers to the corruption questions in the industry,” the Admin of Platforms Africa forum said.in an interview with Radio One, Lagos.
His views were corroborated by another energy expert, Mr. Michael Faniran, who also described it as a welcome development. Everybody, he said, was happy with the National Assembly despite the length of time it took get the Bill passed.
Faniran expressed optimism that the Bill when signed into law by President Muhammadu Buhari would create an efficient industry with independent governing bodies.
“For the Upstream and the Downstream, the governing bodies have clear aims and objectives. It is my hope that this will promote transparency that is not just one person who will be policy maker and regulator.”
He noted that the new law will also attract the needed investments as the direction which the government has decided to follow has become clear, “now there is clarity. It is not whether it is good or not, it is now clear where government is going.
“So anybody who wants to invest now knows where the government is going.”
The bill has awarded gas flaring fines and 3% of the total investment as development fund to host community, an appropriation that has been rejected by a section of the host and impacted communities
The communities have demanded 25 per cent.
Faniran however called for understanding, saying the PIB has established a good starting point.
“If anyone is not satisfied with the provision, I think amendment can come later to accommodate new thinking.
“We cannot get everything right at the same time, we will keep correcting it. Today is a good day for the oil industry after many years,” Faniran added.
