Full communique from first TNG PIB Colloquium on Wednesday, March 2021

Communique released by participants at the one-day colloquium organised by TheNewsGuru (TNG), Africa’s leading online newspaper, as an intervention to aid understanding of the issues involved and to fast-track the passage of the Petroleum Industry Bill, was held on Wednesday, March 10, 2021.

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Over 100 personalities drawn from various walks of life participated in the Webinar.

Key Participants:

1ST SESSION

Chairman: HE Dr Emmanuel Uduaghan, immediate past Governor of Delta State

Keynote Speaker: HE Sen. Oserhemien Osunbor, Professor of Law and Former Edo State Governor

-Senator Magnus Abe

-Prof. Godini G Darah of Delta State University
-Former NDDC MD, Ibim Semenitari
– Immediate past director-general of NIMASA, Dr. Dakuku Peterside
-Prof Hope Eghagha
– Mallam Mohammed Jibrin Barde

2ND SESSION
Chairman: Ex-Secretary to Government of the Federation, SGF, Chief Pius Anyim

Keynote Speaker: HE Distinguished Senator Ovie Omo-Agege, Deputy President of the Senate of Nigeria

-Rt. Hon. Chibuike Rotimi Amaechi

-Hon Minister of State, Labour and Productivity, Chief Festus Keyamo, SAN
– Prof Tony Afejuku of University of Benin
-Member of the House of Representatives, Rt. Hon. Kingsley Chinda;
-Deputy Vice-Chancellor, University of Lagos, (UNILAG) Professor Ben Oghojafor
-Editor-in-Chief of The Guardian, Mr Martins Oloja
-Chief Whip of the House of Representatives, Hon Mohammed Monguno

Moderator: Chairman of TNG’s advisory board, Dr Chidi Amuta

Chief Host: Mideno Bayagbon, Publisher TNG

The Speakers traced the twenty year journey of the Petroleum Industry Bill, under four presidents of Nigeria, and six Sessions of the National Assembly. They also dissected the various provisions of the Bill and their various implications.
Thereafter the following points were raised as Communique to further enrich the Bill before passage into law, for the benefit of the national Assembly, Industry Stakeholders, including Host Communities and Operators, the Government at all levels and the public at large:

1. Host Communities as provided for in the Bill should be properly defined, and should be stratified as
(i.) communities hosting the operations of the Settlers/the Oil Companies
ii. Communities who are impacted by the activities of the oil companies, even though they do not host the companies.

2. The percentage contribution by the oil companies to the Host Communities Trust Fund should be clarified and agreed as follows:

(i,) 2.5 percent of operating expenditures should be paid to the communities at the point of prospecting for oil in the communities.
ii. not less than 10 percent of the production volume exploited from the communities should belong to the host communities.

3. The PIB, in its present state, has not defined a role for the State governments. It is important to make that provision.

4. The Bill leaves it to the discretion of the Oil companies to define “Host Communities.” That should not be.

5. The PIB as presently encoded does not provide for alternative dispute resolution. There should be provision for arbitration and non-litigation settlement before approaching the courts in the event of a dispute.

6. The PIB provides for three main regulatory bodies, but does not adequately empower them, nor insulate them from the overbearing influence of an ambitious Minister. It leaves too much power in the hands of the Petroleum Minister. Admittedly, the Regulatory bodies are administrative/executive bodies, they should have a quasi-judiciary cum legislative status for completeness.

7. The PIB bill has to be further enriched with provisions that anticipate the changes occurring in that industry, including the imminent death of fossil fuel, transition to gas, and ultimately, clean energy. It should also encourage the utilization of derivatives from the industry to encourage overall economic development of the region. The Bill should be further reviewed to be sure it will still be relevant in the next 10 years and beyond.

8. There is a need for a shift in Leadership Mindset/Attitude of the leaders of the oil producing states and communities, so that the proceeds will not be lost through corruption as has been the case in OMPADEC and NDDC. This shift should be driven through awareness campaigns and stipulation of consequences for corruption in the Bill.

9. The Bill needs to spell out the representation quotas of the host communities and other entities on the governance boards of the regulatory bodies to be established. It should go as far as indicating such details for both executive and non-executive positions, so as to remove ambiguities and manipulations at the implementation stage.

10. Need to democratize access to the PIB by producing an Easy-to-Read version to enable people understand and make contributions. The Bill at the moment is a voluminous document of 318 clauses next to the Nigerian constitution with 319 sections.
TNG is challenged to anchor this initiative of producing a humanized and friendly version.

11. Considering that the PIB has been long overdue, it is important that it should be passed soon. However, quality should not be sacrificed on the altar of speed. There are still some drafting errors in the current document. The National Assembly may need a consultant to help proof-read and fine-tune the document.

12. A PIB Roundtable will be anchored by TNG to continue to generate conversations and enrich inputs into the PIB until it is passed.+

Signed: Communique Chairman: Mr Emmanuel Esinnah