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Reps Okay Bill To Plug Revenue Leakages In Oil Sector

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The House of Representatives, last Wednesday, passed a bill seeking to help plug leakages in government’s streams of income in the oil sector for second reading.
This followed a motion by the Deputy Majority Leader, Ahmed Wase, at plenary, presided over by Speaker Yakubu Dogara in Abuja.
Moving the motion, Wase (APC-Plateau) noted that as a result of lack of amendment of the Act, government has lost 21 billion dollars since 2008 when its review was due.
“Government loses about 8 million dollars daily as a result of lack of review,” he said.
According to him, a Bill for an Act to amend the Deep Offshore and Inland Basin Production Sharing Contracts Act, 1999, will help to provide more efficient methods of computing accruable revenue of government.
“It will improve the revenue of the government of the federation.
“Such additional revenue can adequately fund part of our budget deficit, boost the economy and improve living conditions of Nigerians.
“It will improve the petroleum industry governance,” he said.
According to the lawmaker, the bill seeks to effect an amendment in the Principal Act (Deep Offshore and Inland Basin Production Sharing Contracts Act, 1999) in order to plug leakages in government revenue streams and ensure the Federal Government maximises sufficient royalties from Production Sharing Contracts (PSC) between NNPC and International Oil Companies (IOCs).
“PSC was widely introduced in 1993 to address some of the issues faced by the Joint Operating Agreement (JOA) between the NNPC and IOCs and also to provide a suitable agreement structure for encouraging foreign investment in offshore acreage.
“Under these arrangements, the NNPC is the holder of the concession while the IOC is the contractor.
“In 1993, the NNPC entered into PSCs with eight IOCs and Nigeria is believed to have attracted much needed additional foreign investment as a result.
“These new PSCs attracted IOCs due to their favourable fiscal and legal regimes, as IOCs were given a higher profit share for the more marginal and high risk projects off shore,” he explained.
Wase said in 2000, eight new deep water licenses were offered, of which the terms of the PSC were considered to be tougher for IOCs.
He said the reduced risks involved in finding larger deep water reserves was the main reason for tougher profit oil splits in the 2000 PSC terms.
“In 2005, 14 deep water licenses were offered, of which certain alterations were again made to the PSC model contract,” he said.
He said Sections 16 of the Principal Act was amended by adding a new subsection (3) immediately after subsection (2) of the Principal Act.
Wase pointed out that: “Section 16 (3) In accordance with the provisions of subsection (1) stipulated that a royalty rate by price of 50 per cent should be for the additional revenue in the contract area of the Production Sharing Contracts under this Act.
“And the additional revenue shall be determined by the product of the volume of crude oil or condensate sold and the difference between the actual nominal sales price of the oil or condensate and the nominal value of $20 per barrel, (1993 real terms), at the time of sales, provided that the value of $20 per barrel (1993 real terms) shall be determined based on relevant US All Items Consumer Price Index (CPI) as published by the US Bureau of Labour Statistics,” he said.
He said the amendment was imperative to improving government’s revenue for the overall interest of the people.
“I therefore urge this Honorable House to consider it for passage,” he enjoined.
After a debate on the motion, the speaker, put it on a voice vote and the lawmakers unanimously supported it.
He then referred the bill to the House Committee on Petroleum Upstream for further legislative action.

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Rivers PDP Reaffirms Support For Wike

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The Peoples’ Democratic Party (PDP) in Rivers State has said it would continue to support Governor Nyesom Wike to enable him succeed by delivering the dividends of democracy to the people.
The state PDP Publicity Secretary, Darlington Orji, who stated this during a live Radio programme monitored by The Tide in Port Harcourt, Rivers State capital, noted that the governor has performed well going forward.
On speculations in some quarters that the state PDP is divided because of who succeeds Wike in 2023, Orji said it was too early in the day to talk about 2023, insisting that there was no division in the party’s fold.
He stated that election was over and that it is time to govern, saying, the governor himself has said that he was elected to solve problems and address issues in the state.
“I have told those who care to know that the time of election is over. It is time for governance now. The governor of Rivers State himself has said it very clear that he was elected to solve problems and proffer solution to issues and not to complain and for us as a political party, we are giving him all the support that he needs.”
“It is barely three months old and we are talking of 2023. There is no disunity in PDP, Rivers State. We are aware that the only instrument we have to win election in Rivers State is to give the dividends of democracy to the people.
“These are the weapons we have otherwise in the 2019 general elections, the level of militarisation, intimidation and harassment we saw here but the people stood their ground and the party won the election,” he stated.
“So, for us in PDP we will continue to say that we are now in governance and we are supporting the administration of Governor Wike to make him succeed and deliver all the goodies he promised the people and to ensure that the dividends of democracy are delivered to the people,” Orji said
On some of the achievements of the Wike- led government, he said, “It is on record that in the first leg of this administration, several primary schools were upgraded and renovated and put into proper use in several local government areas across the state.
“The Eleme General Hospital in Nchia, was constructed by this administration, completed and commissioned. Government Secondary School, Onne is also in Eleme local government and it was built by this administration.
“The Eleme/Oyigbo road is constructed and about 90 per cent completed amongst other projects that have been executed by this government. Yes, every local government/individual has the right to complain or ask for more but it should also appreciate the man that has done a little before asking for more,” he stated.

 

Dennis Naku

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Bayelsa Guber Poll: PDP Warns INEC Against Inconclusive Poll

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The Peoples Democratic Party (PDP), has warned the Independent National Electoral Commission (INEC), to wake up and put their acts together as to avoid any inconclusive election in Bayelse states governorship election this year.
Bayelsa state governorship election comes up in November this year and INEC said it is on top of the election matters.
Speaking with our correspondent in Port Harcourt recently, the national Vice Chairman of the PDP, South- South, Chief Emmanuel Ogidi warned INEC to ensure that no stone was left unturned in their efforts to conduct a free, fair and credible election as to avoid any inconclusive election in the state.
Ogidi said his party was not satisfied with the INEC preparations so far for the election and was therefore weary and fed up with the electoral umpire which he said had always ended up with inconclusive election and court cases.
According to him,” INEC is always saying they were ready for all the elections but the elections would end up as failures with their new name” inconclusive election” and marathon court cases”.
“The new name for the Nigeria’s electoral empire should be changed from the Independent National Electoral Commission (INEC) to be known as the Inconclusive Election Commission (IEC)”, he stated.
The national vice chairman further warned that the PDP would not accept any heat up in the polity, especially in the South- South that would cause disaffection and rejection of election results across the region.
Chief Ogidi described the present INEC in the country as the worst when compared with the previous ones the nation had.
“Yes, we thought that the Professor Jega’s INEC was bad enough but we have discovered that the present INEC is the worst thing to happen to a nation”.

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Don’t Rely On Party Leaders For PDP Guber Ticket -Secondus

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The Peoples Democratic Party (PDP) has advised its members seeking the party’s nod to contest the Kogi and Bayelsa State governorship elections against relying on the party’s leaders for the ticket.
The National Chairman of the party, Prince Uche Secondus gave the advice on Tuesday in Abuja, at the presentation of clearance certificates to the aspirants.
“Work on the delegates; don’t rely on any party leader. Even members of the National Working Committee (NWC) cannot help you,” he said.
He assured the aspirants of a level playing ground, adding that the party had no preferred aspirant.
“Go and work on the delegates. They are the ones that will elect you as candidate; no one else, not even members of the NWC can help you.
“All I can assure you is that we are going to conduct free, fair and transparent primaries in Kogi and Bayelsa States,” he said.
Certificates were issued to the cleared aspirants from the two states.
Among them were former Governor of Kogi, State Idris Wada, Senator. Dino Melaye, Abubakar Ibrahim, a son of former Governor, Ibrahim Idris, and 10 others.
Those cleared for Bayelsa State include the Deputy Governor, John Jonah, the Secretary to the State Government , Kemela Okara, former Managing Director of the Niger Delta Development Commission (NDDC), Timi Alaibe.
Also on the Bayelsa list are Ambassador Godknows, Senator. Douye Diri and 16 others.

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