Erudite scholars and other distinguished personalities present at the TheNewsGuru.com’s, TNG one-day colloquium, ‘PIB: finally getting it right and breaking the 20-year hiatus’ held on Wednesday, March 10, 2021 have advocated for a clearer definition of host communities in the Petroleum Industry Bill (PIB) set for passage by the Senate.
Former Managing Director of the Niger Delta Development Commission (NDDC), Ibim Semenitari; Deputy Vice-Chancellor, University of Lagos, (UNILAG) Professor Ben Oghojafor and Head of Department, University of Lagos (UNILAG), Professor Hope Eghagha all said the host community in the PIB is ambiguous and must be properly dissected.
Semenitari noted that while the PIB will open several investment doors particularly for the Niger Delta region, however other concerns must be looked at before the bill is passed.
“One of the good things with the PIB is that it actually helps encourage more investments in gas.
And that is a plus. It has a strong focus for gas, on increasing gas prices, physical incentives to the upstream operators, creates midstream intervention fund so it will be encouraging more investment to the gas sector.
However, my major concern as earlier raised by other discussants is on what goes to the host communities. Even the loose definition of host communities. The fact that the bill is very lose when it talks about who the host communities are. The fact of that 2.5%, again, I agree that 10% is the least we should be accepting. This is borrowed really from the Solid Minerals Act and that is an Extractive Industry Act. It deals with an extractive industry. So if 10% is okay for solid minerals, then it should be okay for petroleum.”
Speaking in similar vein, Professor Eghagha said: “After twenty yeas, we are on the verge of passing the PIB. However, we must fire from all cylinders to ensure passage.
That means setting up a group that will lobby our own representatives in the National Assembly to do all that it takes for the bill to be passed.
We may not have an excellent bill as it is now. During the process of implementation, there could be challenges and a need for another bill but I have the fear that we should get this done before next year before politics and politicking takes over.
I am also concerned about host communities. Already much has been said that it should not be left for the operators to decide the host communities. I must confess that I have not read the whole bill and can’t say if it provides for the two categories of the host communities. There is direct host community but there are adjoining communities that are impacted by exploration or extraction activities of the direct communities. I feel this should be looked into as well.
I also agree that 2.5% is an insult on our collective integrity. God asked for 10% of our total earnings and we gladly pay. So we the communities that bare the mainstay of the national economy, if we ask for 10% we are simply copying God and I don’t think we are doing anything extraordinary. So 10% should be the minimum.
Also there should be a mediating group between the operators and host communities. That is the reason I don’t think the state governments should be completely excluded. We should look for a way in which they may mediate. They may not house the funds which maybe the host communities’ fear but their (government’s presence) is needed. We must educate the host communities that the funds received from the operators are not meant to be shared but invested for lasting legacy projects that will benefit all. And that is why an advocacy and awareness campaign for the content of the PIB is needed.”
Professor Ben Oghojafor in his submission said: “This PIB bill has been begging for attention; I posit that powers of the Minister of Petroleum should be further reduced in the bill, the host communities should be properly defined and stakeholder should be classified to avoid class of interest between host communities and impacting community. I submit that there is need to create awareness in all the host communities.
“When the host communities get 10%, will it not go the same way that of 13% funds for DESOPADEC went? We need to look at issues of arbitration, there should be alternative dispute resolution in the bill, to make it a holistic one and avoid endless communal clashes. I will end up in saying that the emphasis on gas will bring lots of opportunities to our nation if this bill is amended to capture the gains.