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JUST IN: House Of Reps Steps Down PIB


The controversial Petroleum Industrial Bill has been stepped down by the House of Representatives after a closed-door session of one hour.


While the house is in recession, a more careful discussion and examination is expected to hold over the decision.


The harmonised PIB allocation to host communities, which was pegged at three percent was earlier opposed by lawmakers from the South-South.


At the floor of the house, the lawmakers were heard chanting “five per cent” against the three per cent.


Meanwhile, the three percent allocation to host communities was adopted in the Senate regardless of the protest by the senator


The figure which is being disputed is the proportion of total operating expenses (OPEX) oil companies are likely to contribute to a trust fund meant for host communities.


Two southern senators George Sekibo and Seriake Dickson raised concerns over the approval.

Senator Sekibo, while making his stand known, said that he is not part of the vote on the allocation clause. While Senator Dickson said his privilege had been breached because his opinions were not accomodated.


Responding, the Senate President Ahmad Lawan stated that a resolution had already been taken on the matter by the Senate and as such could not go back on its decision.


The host community allocation was one of the clauses left in consideration after the National Assembly passed the PIB earlier this month.


The Nigerian oil industry is expected to experience a transformation through the PIB.


The three per cent is different from the 13 per cent derivation fund which is paid to oil-producing communities from the federation account.


Rather, the three percent sharing will come from the total actual yearly operating expenditure of the preceding financial year in the upstream, midstream and downstream sectors.


The contributions are to be saved in a trust fund for host communities.


Peace and cordial relationships between oil companies and host communities will be ensured by the trust fund, according to a draft of the PIB. 

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