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Host Community Tranche Of PIB Scales Second Reading …Senate Adjourns To Sept 19
A Bill for an Act to provide a framework relating to petroleum producing host community’s participation, cost and benefit sharing among government, petroleum exploration companies and petroleum host communities, has passed second reading at the Senate.
The bill, which passed second reading following an unanimous adoption by the lawmakers through a voice vote at plenary, yesterday, was sponsored by Sen. Kabiru Marafa (Zamfara-APC) and members of the Joint Committee on Petroleum Resources.
The bill, which is one of the tranches of the Petroleum Industry Bill (PIB), scaled first reading on December 8, 2016.
Leading debate on the bill, Marafa said the bill was structured to bring direct funding for the development of host communities.
He said the bill recognised the pitfalls of past efforts and is structured to bring direct funding for the development of the petroleum host communities under the direction and control of the communities themselves.
According to him, when enacted into law the bill will create the much desired harmony and partnership among various stakeholders in the petroleum operation process.
He added that it would engender huge cost savings, extensive investment and overall transformations of the Nigeria oil and gas industry.
The lawmaker further said that the passage of the bill would help in curbing restiveness, by assuaging the fears of petroleum host communities and providing a veritable regime of compensation directly to the communities.
He noted that it would enable the host communities develop their local infrastructure, educate their people, access health care and earn a livelihood.
He added that the development would enable them cope with the devastated environment foisted on them by the poorly managed petroleum producing activities of the oil companies.
Marafa pointed out that the bill sought to establish a pool of funding for development of petroleum host communities and specifies the sources of this funding.
He maintained that the pool would be funded through a direct contribution from petroleum producing companies.
The senator also said that the bill defined petroleum host communities that would be beneficiaries of the fund.
According to him, the bill also provides reciprocal responsibilities on the part of communities by creating grounds for deductions for repair of any damaged oil facilities resulting from sabotage.
“The bill also sets out the requirements for account and audit of fund paid to petroleum host communities,
“Agitation for participation for host community in petroleum business and the conferment of financial and other benefits of the industry on such communities is as old as the petroleum industry in Nigeria.
“In fact this has been a critical issue of deliberation at several national forums and even here in the National Assembly.
“Over the years government has attempted to address this issue by providing forms of palliatives to the host communities but this has always fallen short of the expectations of the people in the manner in which it was conceived.
“This bill is presented in line with the perspective of this 8th Senate to split the PIB into smaller partitions to allow for easier consideration and where necessary further amendments,’’ he said.
He said the financial implications of the bill would result from the registration of Petroleum Host Communities Associations and National Committee on Petroleum Host Communities.
He said cost of registration of Petroleum Host Communities Associations would be borne by relevant communities.
He added that the running cost of National Committee on Petroleum Host Communities would be deducted from funds payable to petroleum host communities by petroleum producing companies.
“No funds are needed to be appropriated by the National Assembly for funding Host Communities Associations and National Committee on Petroleum Host Communities.’’
The lawmaker noted that the bill would provide the requisite succour to host communities that had borne the brunt of oil production activities, ensure peaceful co-existence and substantial investment to the Nigerian oil and gas industry.
Contributing, Sen. James Manager (PDP-Delta), said the 8th Senate had made history for the level of achievement with regard to the ensuring the passage of the Petroleum Industry Bill that had lingered for long.
He commended the sponsor of the bill for an extensive job that would be of benefit to all stakeholders in the industry, particularly the host communities.
According to him, “when passed into law, petroleum host communities will heave a sigh of relief.’’
The President of the Senate, Dr Bukola Saraki, referred the bill to the Joint Committee on Upstream, Downstream and Gas for further legislative action after putting it to a voice vote.
The joint committee was mandated to report back in four weeks.
Similarly, the Senate, yesterday, passed the Nigerian Financial Intelligence Agency (NSIA) Bill as a central body in Nigeria responsible for receiving, requesting, analysing and disseminating financial intelligence reports and other information to law enforcement agencies.
This followed the consideration of the report of the Committee on Anti-Corruption and Financial Crimes presented to the Senate by its chairman, Sen. Chukwuka Utazi during plenary.
The Bill, which was only read for the first time, penultimate Thursday, passed second reading last Tuesday and was approved by the upper legislative chamber on Thursday, exactly one week after.
With the passage of the Bill, the risk of Nigeria being expelled from the Egmont Group has been reduced by half as the bill is just waiting for presidential assent to become law.
The Egmont Group is a network of national financial intelligence units and the highest inter-governmental association of intelligence agencies in the world, with 154 member countries including Britain and the U.S.
Nigeria is currently serving a suspension from the group arising from the non-establishment of the NFIA as a unit standing autonomously.
The group accused the Acting Chairman of EFCC, Ibrahim Magu of interfering with the affairs of the unit and sharing information that should be confidential to the unit with others including the media.
The group had also threatened to expel Nigeria permanently by January 2018 if the Nigerian government failed to grant the unit the autonomy it required to be a member of the EGMONT group.
It is in a bid to save Nigeria from being expelled that the Senate gave accelerated passage to the Bill without conducting a Public Hearing.
It would be recalled that the NFIA, if given the Presidential assent, would act as the central body in Nigeria responsible for requesting, receiving, analysing and disseminating financial information to law enforcement agencies.
Speaking further on the Bill, Sen. Chukwuka Utazi, said the proposal sought to make the unit, which is currently domiciled under the EFCC an autonomous and independent body.
He said that the unit was the backbone of the EFCC but had to be made autonomous as pre-requisite of being a full member of the Egmont Group.
Under the passed Bill, the NFIA would now be domiciled in the Central Bank of Nigeria (CBN) and also report to the National Assembly.
The unit, which represents Nigeria at the global body, is charged with tackling money laundering and monitoring financial flows, a task made easy by its membership of the EGMONT Group.
In his remarks, the Deputy President of the Senate, Ike Ekweremadu, who presided over the plenary, thanked all the senators for ensuring they expedited the process leading to the passage of “this very important bill.
“We believe that this is a major contribution in the fight against corruption in Nigeria and believe the international community will take us more seriously for taking the step today.
“I hope that Egmont Group will also take the decision to lift the suspension on Nigeria because of this step we have taken today.
“The fact of relocating the agency under the CBN will give other agencies sufficient access to the job of this agency in such a way that there will be no control of the NFIU that will not lead Nigeria to another round of suspension.”
He said that the Senate had taken the right step especially when it considered that they had was in consonant with what was done in other countries of the world where they had similar agencies.
Meanwhile, the Senate adjourned sitting to September 19 after deliberations on the two bills.
However, as the 8th Senate winds its second session, the upper chamber has approved amendments of the Niger Delta Development Commission (NDDC), to clear certain ambiguities in the extant law.
The Senate also condemned, “non-transparent process” being adopted by the Ministry of Petroleum Resources and the Nigerian National Petroleum Corporation (NNPC) in concessioning of the Port Harcourt Refinery to ENI/AGIP and OANDO.
The lawmakers, therefore, resolved that every the process of the deal henceforth be stopped while advertisement and open bidding for transparency should be adopted for every maintenance of the refinery.
In the new amendment to the NDDC Act, “an indigene of an oil producing area” to be appointed into the NDDC Governing Board has been clarified to read “an indigene of an oil producing local government area”.
Three PIB related bills, Bill for an Act to Establish a Fiscal Framework, A Bill for an Act to provide for Administrative Framework for the Petroleum Industry and the Host Community Bill passed second reading in the Senate chambers.
The host communities’ bill, provides for Petroleum Host Community Associations (PHCA) “to be funded through a direct contribution from petroleum producing companies”.
The Bill also provides for National Committee on Petroleum Host (NCPHC) Communities designed solely to be “a small advisory body which provides support to the Petroleum Host Community Associations when required”.
According to the provisions of the bill, the cost of Registration of the PHCA will be borne by relevant communities, while the running cost of the NCPHC will be deducted from the funds payable to the communities.
The bills would be subjected to Public Hearings before final passage by the National Assembly when Senate resumes plenary Sitting (after annual recess) on September 19, 2017.
Nneka Amaechi-Nnadi, Abuja
Rivers State Governor, Sir Siminalayi Fubara, has described the ongoing construction of the brand new 13.52-kilometre Ngo-Atlantic-Oyorokoto Road as a bold and visionary effort by his administration to open up the coastal region for economic growth and harness the full potential of the state’s blue economy.
The Governor made this remark during an inspection visit to the project site in Andoni Local Government Area. The road, being constructed by Monier Construction Company (MCC), cuts through challenging coastal terrain and leads to a newly identified beachfront facing the Atlantic Ocean.
Governor Fubara explained that while the original plan was to construct a road leading to Oyorokoto Town and its popular beach, his administration decided to expand the project to create an entirely new route that would open access to another pristine beachfront.
“We are doing another inspection today. This particular one is a virgin road, 13.52 kilometres of a new pathway to the blue economy,” Governor Fubara stated.
“Initially, we were constructing a road to Oyorokoto Beach, one of the finest tourist centres in this area. But as we progressed, we discovered another beach directly facing the Atlantic Ocean. It became clear that we shouldn’t limit development to just one site. We want to harness this new beach front as part of our broader plan to develop the blue economy.”
The Governor emphasised that the project, once completed, will not only improve access to coastal communities but also stimulate tourism and economic activities, boosting revenue for Rivers State.
Describing the area’s difficult terrain as challenging, he commended the contractor for its dedication, and expressed confidence that the road would be completed and commissioned by March next year.
“You can see for yourself, it’s a brand-new road in a very difficult terrain, just like the one we saw yesterday. But I strongly believe we will overcome it. From what we’ve seen today, the contractor, MCC, is doing their best, and by next year, hopefully by March, we’ll have the cause to commission this project and give God all the glory,” the Governor affirmed.
Governor Fubara also visited Opobo/Nkoro Local Government Area to assess the progress of work on the Epellema axis of the ongoing 5.2km Kalaibiama-Epellema road project featuring a 450-meter bridge.
Rivers State Governor, Sir Siminalayi Fubara, has expressed satisfaction with the level of progress recorded on the ongoing Trans-Kalabari Road project, revealing that about 75 percent of the critical piling work has been completed.
Governor Fubara made this known while addressing journalists after an on-the-spot inspection of the 12.5-kilometre road project, which will connect the state capital to several Kalabari communities across the sea.
The Governor rode on a boat from a jetty at Rumuolumeni in Obio/Akpor Local Government Area through the rivers and creeks on the project route during the inspection.
The project was awarded to Lubrik Construction Company Limited, on May 15, 2024, with an initial 32-month completion timeline.
The Governor said the visit was aimed at verifying reports from the Ministry of Works regarding the project’s advancement. He commended the contractors for their dedication, and described the progress as “a true reflection of hard work and commitment to excellence.”
“The first phase of the project takes us to Bakana, and features four major river-crossing bridges and nearly five deck-on-pile structures. The terrain is difficult, and the engineering work required is complex. But to the glory of God, I can confirm that the reports I’ve been receiving are accurate. Almost 75% of the piling job, which is the most critical part of the project, has been achieved,” Governor Fubara said.
He emphasised that the Trans-Kalabari Road is one of the most technically demanding infrastructure projects in the state due to its challenging marine terrain but reaffirmed his administration’s resolve to deliver it on schedule.
Governor Fubara highlighted the strategic importance of the road in connecting the Kalabari Kingdom to Port Harcourt, and stimulating economic growth across riverine communities.
“This is a key project that will turn around the lives of the Kalabari people immediately it is concluded. By the grace of God, in the next six months, if we return here for inspection, we might be driving across the bridge,” he said.
Governor Fubara assured Rivers people that his administration remains focused on delivering transformative infrastructure projects that will improve lives and bring lasting development to rural communities.
“We have made a promise to our people to embark on projects that will change lives and bring development, and this is a testament to that commitment,” he added.
The Governor of Rivers State, Sir Siminalayi Fubara, says that the impact of flooding and erosion on the inhabitants of Rivers State, especially those living in coastal communities, are of great concerns to the government.
Governor Fubara lamented the consequences of flood on both human and biotic life, which sometimes lead to loss of life, property, and degradation of the environment.
The Governor made the remark in Port Harcourt during the launch of a book titled, ‘Coastal Zone Flooding And Erosion in Developing Communities, Principles, Cases and Strategies,” written by Emeritus Prof. Wiston Bell-Gam.
According to the Governor, who was represented by the Secretary to the State Government, Hon. Benibo Anabraba, his administration, would continue to undertake and encourage adaptation strategies to combat flooding.
In his words: “The Rivers State Government will continue to undertake and encourage adaptation strategies, such as construction of seawalls and breakers, canals and channels, restoring coastal ecology and ecosystem for coastal resilience and where necessary, the relocation of communities on the coastline.
“These issues are currently receiving the much needed attention and intervention by the recent approval of the construction of shoreline protection along the coastlines of more than five communities in Ogba/Egbema/Ndoni and Opobo/Nkoro LGAs respectively.”
“It is important that as stakeholders in the protection and preservation of marine environment, we all act and advocate for mitigation strategies such as reduction in emission of Green House Gasses that causes climate change and rise in sea levels. Let us promote the use of clean energy and against fossil fuel.
Governor Fubara further cautioned residents to desist from building on waterways.
“We also need to encourage our people to stop developing buildings on and along natural water courses, indiscriminate sea mining and dredging activities on our coastline without consideration for mangroves and swamps,” he stressed.
He appreciated the author for his advanced contributions to the body of knowledge in both Rivers State and globally.
Also speaking, a former Military Governor of the old Rivers State and Amayanabo of Twon Brass, King Alfred Ditte-Spiff, who was Royal Father at the Event, stated that the book was timely to enable stakeholders manage the challenges of global warming.
“Global warming is real. If it’s not addressed globally, a time will come coastal areas will find themselves under water. The coastline of Nigeria is shocking with many mangroves gone,” he noted.
The Reviewer of the Book, who is also the Vice Chancellor of Olusegun Agagu University of Science and Technology, Ondo State, Prof Temi Ologunorisa, explained that the 14-chapter book is timeous as it fills literary gaps between desire and available knowledge on coastal flood and erosion in developing communities.,
“A major beauty of the book that sets it apart is the detailed consideration of flood and erosion control from around the world,” he stated, adding that the book is based on detailed field investigation.