By Nneka Nwogwugwu
Southern governors of Nigeria have rejected the 3% share of oil revenue to host communities in the recently passed Petroleum Industry Bill by the National Assembly.
The governors called for the implementation of 5% as recommended by the House of Representatives.
The Senate had last week Thursday passed the Petroleum Industry Bill (PIB) after two decades of failed attempts.
While reacting to some of the clauses in the bill, the southern governors’ forum, after its closed-door meeting in Lagos on Monday said the 3% approved by the senate was unacceptable.
“The Forum rejects the proposed 3% and supports the 5% share of the oil revenue to the host community as recommended by the House of Representatives.
“The forum also rejects the proposed 30 per cent share of profit for the exploration of oil and gas in the basins.
“However, the forum rejects the ownership structure of the proposed Nigeria National Petroleum Company Limited (NNPC). The Forum disagrees that the company be vested in the Federal Ministry of Finance but should be held in trust by Nigeria Sovereign Investment Authority (NSIA) since all tiers of Government have stakes in that vehicle.” the communique read in part.
The Governors, in a communique at the end of the meeting read by Governor, Ondo State and Chairman, Southern Governors’ Forum, Arakunrin Rotimi Akeredolu, SAN, resolved: “The Southern Governors Forum at the end of the meeting reviewed the situation in the Country and focused on the current security situation, constitutional amendment, Petroleum Industry Bill (PIB).’’
On the Petroleum Industry Bill (PIB) Law, the Forum ‘’commends the National Assembly for the progress made in the passage of the PIB.
‘’The Forum rejects the proposed 3% and supports the 5% share of the oil revenue to the host community as recommended by the House of Representatives.
“The forum also rejects the proposed 30 per cent share of profit for the exploration of oil and gas in the basins.
“However, the forum rejects the ownership structure of the proposed Nigeria National Petroleum Company Limited (NNPC). The Forum disagrees that the company be vested in the Federal Ministry of Finance but should be held in trust by Nigeria Sovereign Investment Authority (NSIA) since all tiers of Government have stakes in that vehicle.’’
Governors present include: Delta-Ifeayin Okowa, Rivers-Nyensom Wike, Ogun-Dapo Abiodun, Lagos State, Babajide Sanwo-Olu, Osun-Gboyega Oyetola, Akwa Ibom- Emmanuel Udom, Ekiti Kayode Fayemi, Bayelsa-Douye Diri, Oyo- Seyi Makinde, Enugu – Ifeanyi Ugwuanyi.
Represented, include: Edo, deputy Governor, Philip Shuaibu, Imo Deputy Governor, Placid Njokwu, Abia State, Oko Chukwu, Eboyin, Kelechi Igwe.
While those absent are: Anambra and the Anambra States.
