By Haruna Salami
The Senate and House of Representatives Thursday passed the long awaited Petroleum Industry Bill with the host communities development fund as the most contentious issues.
In the wisdom of the Joint Committe on Petroleum (Upstream), Petroleum (Downstream) and Gas Resources, to ensure adequate development of the host communities and reduction in the cost of production, five percent of the actual operating expenditure of the preceding financial year in the upstream petroleum operations affecting the host communities is for funding of the Host Communities Trust Fund.
However, the Senate passed three percent after very heated debate with senators from the oil producing South South insisting on going with the Joint Committe’s recommendation of five percent while others went for three percent.
The heated debate over the percentage for the Host Communities Trust Fund made Senator Thompson Sekibo to call invocation of Senate Order 70 which is for individual voting instead of the usual voice which the presiding officer can manipulate.
It took a passionate appeal from the Senate President to make Sekibo to withdraw his motion that could have exposed how each senator voted on the controversial clause.
However, the House of Representatives passed five percent for the Host Communities Trust Fund.
President Muhammadu Buhari sent the bill to the National Assembly in September last year.
The bill aims to modernise the petroleum industry and attract more investors into the sector.
It also specifies that “the roles of the minister of petroleum shall be to formulate, monitor and administer government policy in the petroleum industry
“The Minister may order a cutback of the levels of crude oil or condensate production in the context of international oil pricing agreements supported by Nigeria.
According to the new Act the Minister shall have rights of pre-emption of petroleum and petroleum products marketed under any licence or lease in the event of a national emergency under the First Schedule
The Minister may give general policy directives to the commission on matters concerning upstream petroleum operations and to the authority on mattersrelating to midstream and downstream petroleum operations in line with the provisions of this Act and the Commission and the Authority shall comply with such directives.
He shall have the right to revoke and assign interests in Petroleum Prospecting Licences and Petroleum Mining Leases.
Report developments in the petroleum industry to the government and represent Nigeria at international organizations on petroleum matters
Negotiate treaties or other international agreements on matters pertaining to petroleum on behalf of the Government
Exercise general supervision over the affairs and operations of the petroleum industry in accordance with the provisions of the Act.
The Bill also unbundled the Nigerian National Petroleum Corporation, NNPC into a limited liability company registered under Companies and Allied Matters Act.
