Host Community PIB, two others scale second reading

lSenate may include Kano, Kaduna, others in host community law
lAs Senate adjourns till Sept 19

By Henry Umoru

ABUJA—A BIll for an Act to provide framework relating to Petroleum Producing Host Community’s participation, known as the Petroleum Host Community Bill 2017, yesterday, scaled second reading in the Senate.

The bill also has to do with cost and benefit sharing among the government, petroleum exploration companies and petroleum host communities and for related matters.

Similarly, a Bill for an Act to Establish a Fiscal Framework that encourages further investment in the petroleum industry whilst increasing accruable revenues to the Federal Government of Nigeria and for other connected matters and a Bill for an Act to provide for administrative framework for the petroleum industry and for other connected matters also passed second reading.

The Senate, which has adjourned for its annual recess till September 19, said action on  the bills was in line with its promise to fast-track the passage of all relevant laws that would reposition the nation’s oil industry in accordance with global best practices.

It said the three bills were aimed at providing legal frameworks and other critical aspects of the petroleum industry not captured in the recently passed Petroleum Industry Governance Bill, PIGB.

Senate may include Kano, Kaduna, others in Host Community Law

Meanwhile, strong indications have emerged that the Senate may include some states in the north as beneficiaries in the proposed Petroleum Host Community Bill 2017, just as it was silent on what percentage should accrue to the host communities and which areas make up the host community.

It was, however, gathered that Kano, Kaduna and other states in the north where oil is not produced, maybe included, against the backdrop that petroleum pipelines and oil depots are domiciled in some northern states.

Addressing journalists after the passage, Chairman, Senate Committee on Media and Publicity, Senator Sabi Abdullahi, however, declined to respond to questions on how much had been set aside for host communities and states expected to be included.

In his remarks, President of the Senate, Bukola Saraki, noted that the passage of the bills was in fulfillment of the commitment of the Senate to ensure the swift passage of all PIB related bills, following the passage of the PIGB by the Senate last month.

Also yesderday, the Senate approved amendments of the Niger Delta Development Commission, NDDC, to clear certain ambiguities.

In the new amendment, “an indigene of an oil producing area” to be appointed into the NDDC Governing Board has been clarified to read “an indigene of an oil producing local government area.”

 

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