Politics
PIB: North’s Undevelopmental Stance
The Petroleum Industry Bill (PIB) currently awaiting legislative assent in the hallowed chambers has become an enigma of sort. The reason is simple: from being one of the most democratic phenomenons ever thought of in Nigeria, it has become what is capable of disintegrating the most populous African nation.
Ridiculously, and ironically too, the root cause of the present imbroglio is encapsulated in what George Orwell meant when he said in the book, “Animal Farm” that “in a time of deceit, telling the truth is revolutionary.”
Interestingly, there is hardly any Nigerian, who disagrees, openly, that the country’s petroleum industry needs deliverance, in its entirety. The primary reason is that the industry is the backbone of the country. Therefore, if corruption thrives in it as much as have been variously alleged, the PIB couldn’t have come at a better time, even as many feel it is belated.
Obviously, this reasoning seems to be what guided proponents of the bill over a decade ago, prominent among which was Dr. Rilwanu Lukeman, former Minister of Petroleum Resources, who conceived the idea in 2000.
The PIB is based on the report of the Oil and Gas Reform Implementation Committee (OGIC) set up by the Federal Government in 2000 to carry out a comprehensive reform of the oil industry. The OGIC was charged with making recommendations for a far-reaching restructuring of the oil and gas industry. The committee was chaired by Lukman, who was then the Presidential Adviser on Petroleum and Energy.
According to Lukeman, the PIB constitutes a reform legislation designed to encapsulate the legislative and administrative instruments governing the petroleum industry in one omnibus legislation, establishing clear rules, procedures and institutions for the industry.
In a presentation at a stakeholders’ session in 2009, Lukman said: “The Nigeria Petroleum Industry Bill is a remarkable document, which contains most of the legal requirements that will apply to the petroleum industry in Nigeria.
“The PIB combines 16 different petroleum laws in a transparent and coherent document. This is the first time that such a large scale consolidation has happened anywhere in the world. Good governance is promoted through the removal of much of the confidentiality as well as creating transparency.
“Confidentiality encourages corruption. The best way to fight corruption is to remove confidentiality from all procedures, contracts and payments. Every Nigerian, including stakeholders, should have the right to know what is going on. The bill removes confidentiality on a scale not seen in the world before. Nigeria will move in one step from one of the most opaque petroleum nations in Africa, to one of the most open and transparent in the world.
“The texts of all licenses, leases and contracts and any of the changes to such documents will no longer be confidential. Payments to the government of Nigeria will be public information. All petroleum geological, geophysical, technical and (oil) well data will be accessible for all interested persons in a national data base.
“The proposed bill will result in a significant increase in transparency. From now on, petroleum prospecting licenses and petroleum mining leases can only be granted by the Minister through a truly competitive bid process. Such process will be open and accessible to all qualified companies.
“Every company involved in the upstream petroleum industry will be subject to the same system of rents, royalties and taxes, depending on whether they operate in the onshore, shallow or deep offshore or inland areas.
“This means it will not be possible under the bill to treat certain companies more favourably than others. Nigerians can only fully benefit from their petroleum resources, if there is a sound petroleum administration,” he said.
In spite of this anticipated Eldorado, major companies involved in oil and gas exploration and exploitation, mostly multinationals, were the first to pick holes in the bill. They kicked against the perceived contentious provisions in the bill, especially the fiscal terms, claiming that the benefits the government wants from operations are so high that if the bill is passed in its present state, they would be running their business at a loss.
Other issues in the bill that operators frown at include undue powers conferred on the Minister of Petroleum and some conditions attached to acreage leases to oil firms. These and other issues that border on downstream sector are what the Federal Government was trying to resolve before Northern lawmakers recently joined the fray.
The Chairman, Senate Committee on Housing, Sen. Bukar Abba-Ibrahim (ANPP-Yobe) gave an insight into the North’s opposition to the PIB, saying it is lopsided. He said the clause in the PIB, which allots additional 10 per cent revenue for oil producing communities was unacceptable.
Abba-Ibrahim, a former Governor of Yobe State, said, “This issue of oil producing communities getting 10 per cent of whatever is gotten from oil in addition to all sources of revenue for the oil producing states which has now divided the country into two, with oil producing states having more than what they need and squandering the oil riches, and the non-oil producing state, which are more in number, hardly surviving, hardly paying salaries and hardly doing anything has to stop.”
The lawmaker continued that the North was also opposed to the PIB because of its failure to make provision for the exploitation of other minerals all over the country.
“We have over 800 million tones of limestone in Gulane, Fune and Guljimba local governments of Yobe, but as a state government, you cannot go and exploit, it has to be Federal Government.’’
He is, however, optimistic that the bill when passed would sanitise the Petroleum Industry and address the issue of corruption in the sector.
A critical analysis of Abba-Ibrahim’s statements reveals that when he said oil producing states where “having more than what they need”, he was inadvertently confirming that governments have always been squandering public funds. Such funds are meant for the development of the populace.
Obviously, if the populace were being developed, the government would not have been accused of squandering funds allocated for development. So, why is he and his Northern brothers against the development of primary recipients of hazards accruable from oil exploration, extraction and exploitation? What difference will it make to the communities when such fund is deposited in the national treasury?
Democracy has clearly been so misconstrued that people are often so blind with their own version of patriotism that they find it difficult to face reality. They thus forget that wrong is wrong, no matter who does it or says it.
The Northern stance is thus a quest for the status quo of squandering public fund to remain. It is another way of saying that it is wrong for the hitherto devastated oil producing communities to be developed.
The North should rather take a cue from the popular television presenter, Oprah Winfrey, who once said, “Challenges are gifts that force us to search for a new centre of gravity. Don’t fight them. Just find a new way to stand.”
Since they have confirmed that they are rich in limestone, for instance, the right thing to do to avoid the division of the country over benefits accruable to host communities of mineral resources is to exert such energies as they expend on fighting for oil proceeds on the Federal Government to commence exploration of alternative mineral resources in their various states through legislation.
With the exploration and exploitation of such mineral resources in their states, they will also get into the groove of enjoying the proceeds. To do otherwise will amount to repeating the same mistake made during the pre and post colonial era when educationally developed states were made to wait for the less developed ones to catch up. This is against the principle of democracy.
In addition, if they are truly concerned about the development of Nigeria, they should concern themselves more with coming up with laws that would check financial impropriety at all levels of governance. This is what the PIB seeks to do in the petroleum industry.
The Tide source reports that Prof. Akinoso was elected alongside 38 other executive members of the party at the congress held on Saturday.
Other executive members are Dr Abiola Olaonipekun, who emerged as Secretary, Alhaja Latifah Latifu, Women Leader and Mr A. Adeleke, elected as Youth Leader.
It was learnt that the congress, which took place at the Obafemi Awolowo Stadium, Oke Ado in Ibadan, was attended by representatives of the Independent National Electoral Commission (INEC), the Police, other security agencies and prominent members of the party.
The election was supervised by electoral committee members, among whom were Prince Diran Odeyemi, who served as Chairman, Hon. Awoniyi Tolulope, Mr Babatunde Gbadamosi, Queen Stepheine Oyechere, Alhaji Yusuf Abidakun, Mr Olumide Aguda and Dr Phillips Adeniyi, who served as Secretary.
Prof. Akinoso, in his inaugural address, urged members of the party to set aside intra-party differences.
He advised them to concentrate their resources on the promotion of the party, saying, “The primary responsibilities of party executive members are to coordinate party activities, ensure harmony among members, and ensure party victory during general elections.
“Our immediate assignments are to key into INEC released 2027 general election time-tables. As directed by the National Caretaker Committee of PDP, our party e-membership registration starts next week. We must be fully involved and do a membership drive.
“A political party is only relevant and benefits its members if it wins the election. This is our goal. We should set aside intra-party differences; concentrate our resources towards the promotion of the party. We will make necessary consultations and dialogue to actualise this”.
President Tinubu disclosed this during an interfaith breaking of fast with senior journalists and media executives at the Presidential Villa in Abuja on Saturday.
He also disclosed that his administration had opened up on the principles of true federalism to the extent that local governments now get direct allocation from the Federal Government.
“There’s no morning that I ever leave my house without going through the newspapers. It’s an addiction. I read all of you.
“It might not be in full detail, but headline, the one that would hit me and the ones that won’t.
“At the beginning of this administration, I was just a little bit stubborn, looking at opportunities to correct things and make life more easier for the downtrodden.
“We’ve opened up the principle of federalism to the extent that local governments are now getting their money, but how they use it is in your hands. So, don’t bombard me alone,” President Tinubu said.
The ruling party said the ADC had turned criticism of the APC-led administration into its operating manifesto instead of presenting concrete solutions to Nigeria’s economic challenges.
In a statement issued on Saturday by the APC National Publicity Secretary, Mr Felix Morka, the party dismissed the ADC’s interpretation of a report presented at a policy dialogue organised by Agora Policy which suggested that the country’s poverty rate had risen from 49 per cent to 63 per cent.
Mr Morka said the opposition party’s reaction to the report as a “damning verdict” on the government’s economic policies reflected either ignorance of economic realities or deliberate political mischief.
“The African Democratic Congress’ attempt to spin a recent report presented at the Agora Policy dialogue indicating a rise of poverty rate of 63 per cent from 49 per cent as a damning verdict on this administration’s economic policies speaks either to its shocking ignorance of economic policy or its wilful blindness to the justification for, and transformative impacts of, ongoing economic reforms,” he said.
The APC spokesman noted that the report itself recognised the necessity of reforms aimed at correcting long-standing structural distortions in the economy.
According to him, the ADC had failed to present any credible alternative policy direction for Nigerians.
“Clearly, the ADC does not recognise itself as a political party. The ADC has not articulated a single alternative policy position or prescription of benefit to Nigerians. Condemning the APC and its policies has become its operating manifesto,” Mr Morka said.
He explained that major economic decisions taken by President Bola Tinubu, including the removal of fuel subsidy and the unification of multiple foreign exchange windows, were necessary steps to rescue the country’s economy from collapse.
Mr Morka said the subsidy regime had for years placed a heavy burden on public finances, consuming trillions of naira annually while encouraging corruption, fuel smuggling and inefficiencies in the system.
He added that the reforms had helped redirect national resources to key sectors such as infrastructure, healthcare, education and social development.
The APC spokesman acknowledged that economic reforms often come with short-term hardship but stressed that the measures were essential to build a stronger and more resilient economy.
“Economic reform is never cost-free anywhere in the world. The transient hardship experienced by Nigerians was an inevitable cost of reforms meant to build and guarantee a better future for all Nigerians,” he said.
Mr Morka maintained that the country’s economic outlook was already improving, citing recent growth figures and stronger external reserves.
“Our economy has rebounded and is expanding steadily. The country’s Gross Domestic Product grew by 4.4 per cent last year and is projected to expand by 5.5 per cent this fiscal year, with foreign reserves now exceeding $50 billion,” he stated.
He also pointed to government initiatives designed to cushion the effects of economic adjustments on citizens, including cash transfer programmes, student loan schemes and the rollout of compressed natural gas (CNG) initiatives to reduce transportation costs.
Mr Morka reaffirmed that the APC-led administration would remain focused on rebuilding the economy and expanding social investments to support vulnerable Nigerians.