Editorial
Another Look At PIB Provisions
Progress on the Petroleum Industry Bill (PIB) currently under careful considerations in the National
Assembly (NASS) may be stalled as two prominent groups in the Niger Delta region, the Pan-Niger Delta Forum (PANDEF) and the Niger Delta Dialogue (NDD), have outrightly rejected no fewer than 12 significant provisions in the Petroleum Host and Impacted Communities Development Bill (PHICDB).
Specifically, both groups are asking for the redrafting, rephrasing and restructuring of the observed provisions to accommodate the interests of the poor and neglected people of the oil and gas host and impacted communities in the Niger Delta or lose the peace and development sought by the PHICDB in the region.
PANDEF and NDD revealed their positions during the NDD’s Strategic Communication and Advocacy Training session for major stakeholders in PANDEF, NDD, and the various Policy Advocacy Committees (PACs) in Port Harcourt recently. The PHICDB is an essential part of the Petroleum Industry Bill (PIB) currently before both chambers of the National Assembly.
The PHICDB seeks to promote sustainable mutual social and economic benefits from petroleum operations to host and impacted communities. It is equally designed to enhance peaceful and harmonious coexistence between settlers and host/impacted communities as well as create a framework to support their development process.
The objectionable provisions include the Interpretations Section, which the groups claim was vague in the use of words and terms such as “host and impacted communities” to describe oil-bearing communities in the region. They also faulted the silence of the bill on how the clusters should be formed and the trust fund shared. Similarly, they rejected the vague use of the term ‘Settlor(s)’ in Part 2, Section 2, Subsection 1 and 2 of the draft bill.
Additionally, the stakeholders wondered why “sabotage spill” was not clearly defined but its effects were highlighted in the draft bill. Further, they condemned the observed silence in the sharing formula of the accruing fund from the “Settlor(s)” between host and impacted communities, particularly given that there are more impacted settlements than host communities in available oil industry records.
Furthermore, the groups took a swipe at Part 3, Section 9, Subsection 1 and 2 of the draft bill for resting the creation and determination of the membership of the Board of Trustees (BoTs) for the trust funds on the International Oil Companies (IOCs). They also picked holes in Section 11, which splits the utilisation of the Endowment Fund to 70 per cent for capital expenditure; 20 per cent for the Reserve Fund; and 10 per cent for the settlor(s) special projects.
Expressing worry that the Presidency failed to specify how the operating expenditures of the settlor(s) would be verified to ascertain the accruing funds to the cluster trusts, the stakeholders objected to Section 22 that the settlors’ Operating Expenditure (OPEX) paid into the trust fund shall be subject to Petroleum Income Tax (PIT) and Companies Income Tax (CIT) deductibles.
Section 5 of the bill was queried for failing to give specific sanctions for underpayment, late payment or non-payment of agreed money into the cluster trust fund as and when due. They lamented the insufficient clarity on time frames for the incorporation of cluster trusts for host and impacted communities and the failure to stipulate penalties for reneging on implementation of agreed projects and programmes by the settlor(s) as contained in Section 3 of the bill.
First, it must be established that the broad objectives of the PHICDB are commendable, and that is to find an acceptable framework for an active company-community engagement mechanism structure. But it shouldn’t be seen as a substitute for the government’s responsibility to provide basic services and infrastructure for the host and impacted communities.
However, the flawed provisions identified by PANDEF and NDD are troubling. These principally relate to the power vested in the oil industry to determine crucial parameters connected to how funding will be allocated. We also need to know what constitutes a host community and how the BoTs to manage the funds will be set up.
If the purported purpose of the bill is to empower host communities to take charge of their development needs, why does it give the IOCs the sole power to appoint and determine the composition of the BoT, cutting communities out of the decision-making process? This way, investors can appoint non-indigenous persons as board members. This is a source of conflict and highly undesirable for a bill that aims to build trust.
Again, the issues regarding the lack of an enforceable time frame for project implementation must not be ignored because of its likely consequences. It will probably institutionalise the perception among communities that their concerns are marginal to those of industry, hence, generate serious grievance for many.
It is equally sad that the PHICDB makes settlors the sole authority for determining areas of operation. In effect, this is the power to determine which communities are impacted by the petroleum industry and as such benefit from the trust fund. This means communities that suffer environmental damage from the petroleum industry, but which, if not designated as a host community, will be denied compensations. This enables IOCs to fulfill their obligations in a way that suits their needs, not the communities’.
The PHICDB, as it stands, downplays the role of government in the development of host communities. Instead, it places that responsibility on the oil companies, with the only role for the government that of the Nigerian Petroleum Regulatory Commission (NPRC). NPRC is to mediate in disputes with the proviso that the decision of the Commission remains valid until overturned by the Federal High Court.
But being a creation of the government, it is believed that the NPRC may not be an impartial arbiter because the likely outcome in any such dispute will be favourable to industry, not the communities. And since historical antecedents of such litigations in court have tended to take years, if they are resolved at all, likely the NPRC decision will unduly last longer.
Clearly, the PHICDB vests too much power in the IOCs, particularly in terms of deciding how development projects are determined and implemented, as well as their beneficiaries. This may further alienate communities that already consider themselves cut out of decision-making. In consequence, the Federal Government and NASS should re-examine the PIB and accommodate the recommendations of the PACs to prevent another round of tension and agitations in the region.
Editorial
Checkmating ‘One-Chance’ Menaces In PH
Editorial
That Oshiomhole’s Call On FG’s Road Projects
There are moments in the life of a legislature when plain speaking becomes a public service. Senator Adams Oshiomhole provided such a moment on the floor of the Senate when he accused the Minister of Works, Senator David Umahi, of manifestly neglecting critical federal arteries in Edo and Delta States, and implored his colleagues to prevail on the Minister to adopt a more equitable and genuinely national approach to road infrastructure delivery. It was blunt, it was uncomfortable, and it was necessary.
The specifics of his complaint deserve restating. Drawing attention to the recent approval of some 20 new road projects despite the parlous state of existing ones, the former Edo State governor lamented that Nigerians cannot travel from Benin to Warri, Benin to Asaba, Benin to Auchi, or Auchi to Okene without encountering severe distress. He alleged a deliberate omission of these corridors from the national budget in the last three years, save for palliative interventions directed by President Bola Tinubu through tax credit arrangements. His question — “What have we done wrong?” — resonates far beyond the chambers of the National Assembly.
We lend our full and unequivocal support to that call. The Auchi-Benin Road, for instance, has been in a deplorable and near-impassable condition for several years, turning what should be a two-hour journey into an all-day ordeal of broken axles, extortionate fares, and despondent commuters. The media have, on multiple occasions, chronicled the suffering of motorists, traders, and students who ply that route. To describe it as a federal road today is to stretch the meaning of the term beyond recognition.
This pattern of sidelining is not confined to Edo or Delta. Even here in Rivers State, the disposition of the Federal Ministry of Works has left much to be desired, particularly along the Eleme axis of the East-West Road. That road, which ought to be a flagship of federal presence in the Niger Delta, has remained in a wretched state for long. Those who use it daily — workers at the Eleme Petrochemical Complex, the two refineries, Onne Port, and the countless ancillary industries — can attest to its deterioration. Work has proceeded in fits and starts without the sustained urgency such a strategic road demands.
The Eleme stretch is not a mere intra-state byway. It is the gateway to the nation’s economic jugular. According to the Federal Ministry of Works and Housing’s 2023 Highway Condition Survey, only about 35 per cent of the country’s 36,000 kilometres of federal roads are rated as being in good or fair condition, with the remainder classified as poor or very poor. The East-West Road, conceived in the 1970s to bind the entire Niger Delta, remains unfinished in critical sections more than four decades after. If it had been treated as a priority, the perennial gridlock, carnage, and economic loss on the Eleme-Refinery junction would have long been consigned to history.
The irony is as painful as it is glaring. The Niger Delta remains the goose that lays the golden eggs. Data from the Nigeria Extractive Industries Transparency Initiative [NEITI 2023 Oil and Gas Audit] show that the region still accounts for over 78 per cent of Nigeria’s federally collected export earnings and about 65 per cent of total government revenue. The National Bureau of Statistics [NBS Foreign Trade Report Q4 2024] similarly confirms that crude oil continues to dominate export receipts. By every metric of equity and economic logic, a region that sustains the national purse deserves first-rate consideration in the allocation of infrastructure, not afterthoughts and tokenism.
Road infrastructure is not largesse to be dispensed by favour; it is the skeleton upon which commerce, cohesion, and citizenship hang. When contracts are concentrated in one geopolitical zone while other zones are left to contend with craters, it erodes trust in the federation itself. The World Bank’s Nigeria Development Update [June 2023] estimated that poor transport connectivity inflates the cost of moving goods by up to 40 per cent and costs the Nigerian economy an estimated $1.5 billion annually in lost man-hours and vehicle maintenance. If we profess to be one country, then equity must be the compass that guides key institutions before any project is executed. Development must spread round, not pool in one place as though other regions do not matter.
There is also a grave security dimension that can no longer be ignored. The deplorable condition of federal roads has become a veritable enabler of criminality. The NBS Crime Experience and Security Perception Survey reported over 2.5 million incidents of kidnapping-related occurrences nationally, with transport workers identifying bad road spots as prime ambush points. When vehicles are forced to crawl at 10 kilometres per hour through failed sections at Auchi, Sapele Road, or Eleme, they become sitting ducks for armed gangs. Fixing bad roads, therefore, is not merely about convenience; it is about safeguarding lives.
By his intervention, Senator Oshiomhole has hit the nail on the head and reminded Minister Umahi of a fundamental constitutional truth: public office is held in trust. The Ministry of Works is not a personal estate where contracts are awarded according to whim or political convenience. It is a national institution funded by the collective resources of Nigerians, including the oil and gas rents from the very communities whose roads are now neglected. The Minister must demonstrate balance, transparency, and a pan-Nigerian outlook in the distribution of projects that impact the daily existence of citizens. Selective neglect breeds suspicion, and suspicion is corrosive at a time when the nation is preaching unity, oneness, equity, and justice.
Consequently, the National Assembly must go beyond rhetoric and assert its oversight powers with vigour. Sections 88 and 89 of the 1999 Constitution [as amended] empower the legislature to investigate and expose any maladministration in the execution of federal projects. If an office holder is not acting rightly, it is the duty of the Senate and the House of Representatives to call him to order. Oversight must not be reduced to budget approval ceremonies; it must translate to field verification, public hearings, and insistence that the Federal Character principle, as enshrined in Section 14(3) of the Constitution, reflects in road awards.
Let the Auchi-Okene, Benin-Warri, Benin-Asaba, and Eleme East-West gangways be restored to motorable dignity. Let priority be given to completing existing, economically vital roads before embarking on new ones. If those who, through their resources, sustain the federation are sidelined in the distribution of tangible dividends, it tells poorly of our nationhood. Bad roads must be fixed, and they must be fixed now, with fairness as the guiding standard.
Editorial
Making Rivers’ 2026 Budget Count
-
News3 days agoRSG Targets Nine Million Residents in Mosquito Net Distribution Campaign
-
Oil & Energy3 days agoAiyedatiwa Signs New Electricity Bill
-
Oil & Energy3 days agoNLNG Commissions Research And Innovation Centre In RSU
-
Maritime3 days agoMarine Minister Commends President Tinubu On NPERA Bill Assent
-
News3 days agoKenPoly Holds Eight Convocations, August 29
-
News3 days agoRSG Begins Another Phase of Projects Commissioning Today
-
News3 days agoRMAFC Completes Revenue Sharing Review, Proposes New Pay
-
Maritime3 days agoNAGAFF Petitions IGP Over Alleged Maritime Police Harassment
