The Nigerian Senate has passed the harmonized Petroleum Industry Bill PIB produced by a conference committee of both chambers of the National Assembly
The Nigerian Senate has passed the harmonized Petroleum Industry Bill PIB produced by a conference committee of both chambers of the National Assembly last week.
The lawmakers had submitted the harmonized version of the PIB on Thursday at plenary.
Prior to the passage of the bill via voice votes, senators from the South-South geopolitical zone kicked against the proposed 3% equity share for the oil host communities.
Senator Seriake Dickson had threatened to lead his colleagues on a walkout, however, the Senate President, Ahmad Lawan prevailed on him.
The Senate had earlier argued during the consideration of the report, that the three 3% amounted to half a billion dollars.
The Chairman of the Senate Committee on Petroleum Resources (Downstream), Senator Sabo Mohammed Nakudu, who explained why the 5% was reduced to 3% shortly after the plenary, said the earlier percentage which was 2.5 was increased to 5%.
He had added that it was reduced after the Group Managing Director of NNPC, Mele Kyari explained that five percent was a huge amount of money, adding that “the 3% amounts to half a billion dollars.”
Naduku further said an enabling environment had to be created to attract investors because fossil oil was fast going out of fashion.
On his part, the Senate spokesperson, Senator Ajibola Bashiru said:
“On the three percent that was approved for the upstream operating expenditure, from the projection made by the NNPC GMD, who briefed us, it will amount to $502.8m for the host community development fund.
“That is a huge amount of money that we believe the host community will definitely benefit from.
“So, the three per cent operating expenditure will annually amount to $502.83m.
“The initial projection was 2.5 per cent and it was increased to 3 percent. The caveat is that we can always amend the bill as time goes on.”
