Page 11 - AfrOil Week 30 2021

AfrOil POLICY AfrOil

Some host communities have expressed strong concern about environmental problems (Photo: Guardian.ng)

Revenue sharing remains contentious

issue in Nigeria after passage of PIB

NIGERIA DESPITE its recent passage by both chambers allotment is “unjustifiable,” especially in com-
of the National Assembly, Nigeria’s Petroleum parison to the 10% share demanded by many
Industry Bill (PIB) continues to spark contro- stakeholders in oil- and gas-bearing areas of
versy, especially with respect to the issue of rev- southern Nigeria and the 5% rate recommended
enue-sharing between the federal government by many MPs.
and host communities. The matter could end up “opening another
Revenue sharing has been a sore point in chapter for unrest in the area, which will not
southern Nigeria, which is home to many of benefit anybody,” he was quoted as saying by
the country’s onshore oilfields. Host commu- This Day earlier this week.
nity advocates have complained that the PIB Additionally, Dickson argued that the gap
provides for Niger River Delta communities between host communities and the federal
to collect only 3% of revenues generated by government on this front would end up hurt-
local fields, far less than the 30% share allotted ing Nigeria’s oil and gas industry if it was not
to communities within frontier provinces in corrected.
northern Nigeria “This country is not helping the host com-
One such complaint came from Akin Omo- munities, and it is not creating the enabling envi-
juwa, the chairman of the Niger Delta Youth ronment for investment to thrive,” he asserted.
Movement (NDYM). Omojuwa was quoted by “The argument was that the investors would not
Vanguard as saying earlier this week that the 3% come if more than 3% was approved. However, I
stipulated in the final version of the PIB was so want to state that if the host communities are not
small that it might provoke outbursts in south- happy, the investors will not come.”
ern Nigeria. By contrast, Mike Emuh, the chairman of
“Communities which own the resource suf- Host Communities Producing Oil and Gas
fer the devastation caused by oil exploration in Nigeria (HOSCOM), praised the PIB, say-
and exploitation, and they deserved a better ing that the 3% share of revenues would be of
deal than the 3%,” he commented. “Should the great benefit to the Niger River Delta region.
National Assembly fail to do the needful, we This arrangement will generate about $500mn
call on President Muhammadu Buhari, who that can be used to promote sustainable devel-
has proven to be passionate about Niger Delta opment in host communities, he was quoted as
issues, to insist that the 3% be reviewed upward saying by Vanguard earlier this week.
to 10% before signing the bill into law.” “We have been agitating for the development
Senator Seriake Dickson, the former gov- of the communities, which lack electricity, water,
ernor of Bayelsa State, also expressed concern roads and jobs for their youths,” he said. “These
about the possibility of unrest in communities communities have been neglected for several
where opposition to the PIB is strong. The 3% years.

Week 30 28•July•2021 www. NEWSBASE .com P11