Pan Niger Delta Forum (PANDEF); Host Communities of Nigeria (HOSTCOM), and other stakeholders of Niger Delta, recently, disagreed with Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mr Kele Kyari, over his claim that three per cent for Host Communities Trust Fund was higher than 30 per cent for exploration on Frontier Basin in the new Petroleum Industry Act (PIA).
PANDEF’s National Publicity Secretary, Ken Robinson, said: “The statement by Mr Kyari, the Group Managing Director of NNPC, that the three per cent provision for the Host Communities Development Trust in the Petroleum Industry Act is higher than the 30 per cent allocation for Frontier Exploration, is absurd and presumptuous.
According to PANDEF, “How can anyone make such an irrational comparison? It is adding insult to injury, to say the least.
“Oil and gas host communities in Niger Delta bear the brunt of the industry operations. With colossal adverse effects on the region’s hitherto luxurious ecosystem; the indigenous people’s means of livelihood have been grossly degraded, with little, if any, improvement in their standard of living.
“And so, it is awful for anyone to compare, for any reason, the paltry three per cent provision for the Host Communities Trust Fund to the humongous 30 per cent allocation for the nebulous Frontier Exploration Fund. It is baseless and makes no sense.
“Kyari’s expression reflects the uncouth contempt and injustice being carried out against Niger Delta. The nation cannot continue in this trajectory.”
National President, HOSTCOM, Chief Benjamin-Style Tamaranebi, who reacted to the controversy, said: “We keep hearing from Minister of State (Petroleum) and GMD, NNPC, that 30 per cent NNPC profit is lesser than three per cent Host Communities’ operating cost.
“GMD Kyari Mele is entitled to his opinion because we are not privileged to what is happening in the corporation and it is like a cook, who went out to the market to get foodstuff and prepare a meal for guests, the guests only know what was placed before them.
Pere (traditional ruler) of Seimbiri Kingdom in Delta State and former national chairman, Traditional Rulers of Oil Minerals Producing Communities of Nigeria, TROMPCON, Charles Ayemi-Botu, said: “That is arrant nonsense. Kyari should go and tell that to the marines or to Musa. By the way, what is the rationale in making such arrogant statement? No person in his true sense of reason will make such a ridiculous, unguarded and blasphemous statement.
“He should hide his head in shame, for the opportunity in becoming the Group Managing Director of NNPC without knowing the difference between three per cent and 30 per cent. He may best be described as a round peg in a square hole. We are in government of nepotism and winner takes all syndrome.
“Kyari did not expatiate on the details that informed such unguarded, erratic and stupid statement. Host communities are requesting nothing less than 10 per cent allocation to assuage the age long ecological degradation/devastation, environmental hazards, pollution of our only source of livelihood, our ecosystem has been totally destroyed, acid rains as well as the depletion of the ozone layers bring diseases, culminating in infant mortality/premature death, etc.”
An indigene of oil and gas rich, but neglected Oluasiri clan in Nembe LGA of Bayelsa, Iniruo Wills, said: “That is an utterly irrelevant comparison. It is a mechanical attempt at diverting attention from the gross injustice of treating communities as a nuisance factor.
“The real question is how does three per cent of mere operational expenses compare with the 10 per cent equity originally proposed at the beginning of the PIB journey or with the 10 per cent of profits that it was first watered down to by then President Jonathan and oil minister, Diezani Allison-Madueke, before Bukola Saraki’s National Assembly later cannibalised it down to 2.5 per cent of profits, setting the stage for the current crop of executives and legislators to do this final havoc”.
Coordinator, Niger Delta Peace Coalition, Zik Gbemre, said: “The comparison is immaterial, a meaningful distraction. It is extreme corruption for government to fund oil and gas prospecting. That is the reality Kyari would not mention”.
National president, Vanguard for Transparent Leadership and Accountability (VATLAD), Mr Emmanuel Igbini, declared: “From my deep knowledge of the Nigerian upstream petroleum sector, I know that data and figures thrown at Nigerians by the International Oil Companies, IOCs, are not credible at all.”
Minority rights activist, Eric Omare, said: “I do not have the statistics as per the total yearly operational cost of oil operations in Nigeria and the NNPC yearly profit on oil. However, the key point in the GMD’s comment, which is correct is that the criteria for arriving at the Host Communities Trust Fund and the Frontier Areas Fund are not same”.
John Okodi-Iyah, an engineering consultant in Akwa Ibom State, said the NNPC boss was economical with the truth.
“They can deceive some of the people sometime or all the time, but not all the people, all the time,” he said.