Editorial

PIB: Supporting 10% Trust Fund

Published

4 years ago

March 31, 2021

Arising from their last meeting held earlier this month at the Government House in Port Harcourt, the Rivers State capital, governors of the South-South region bared their mind on the Petroleum Industry Bill (PIB) currently receiving legislative attention at the National Assembly.
Addressing newsmen at the end of the meeting, Chairman of the South-South Governors’ Forum and governor of Delta State, Dr Ifeanyi Okowa said the governors had rejected the provision of 2.5 per cent contribution into the Host community Trust Fund as contained in the bill and instead demanded a 10% contribution.
According to the Chief Executive Officers of the oil bearing states, the 2.5 per cent proposal was grossly inadequate and incapable of addressing the issues it is meant to resolve in the overall interest of all stakeholders in the oil exploration and exploitation activities including the nation, the impacted communities and the oil companies.
“We took up the issue of the PIB, the Petroleum Industry Bill which is already before the House (National Assembly) and having compared notes with ourselves, we are of the view that while we welcome the Host Community Trust Fund, we do believe that the 2.5 per cent that is appropriated in that bill for the purpose of host community fund is inadequate.
“We have discussed with our people and collectively as leaders of the people in our various states and as leaders standing in on behalf of our people, we urge that the National Assembly should increase the provision in the host community fund from 2.5 per cent to 10 per cent in the best interest of our communities, in the best interest of our nation”, they said.
The governors expressed the firm belief that the provision of adequate funding to cater for the needs of the host communities to compensate for the adverse effect of the hydrocarbon industry upon their lives and livelihood was the sure way to securing a stable, secure and crisis-free atmosphere and environment for the industry that sustains the nation.
“And the peaceful environment that would be seen in the various oil communities would enable us to have greater production and a seamless production in which we do not have any form of disruption in our oil productions going into the future”, they stressed.
The Tide endorses and supports the governors on this well-considered and modest demand as it faithfully represents the yearnings and aspirations of the deprived, dehumanised, neglected, environmentally devastated, economically strangulated and physically exposed to certain painful death by instalment inhabitants of the region.
It is a truism that adequately fed and well tended cows yield the most milk and healthiest meat. The same is true of poultry where the quality and quantity of eggs produced by the birds is directly derived from the quality and quantum of feed and other requisite treatment given. To receive more from the God-given wealth to the people of the Niger Delta, the Federal Government should have no difficulty making appropriate investments into the lives and environment of the people in order to reap bountiful and sustainable benefits for the nation.
Against this backdrop, The Tide urges the governors not to shift grounds on their demand. In the same vein, we urge the National Assembly to see the position of the people of the region as expressed by the governors as service to the nation and therefore brook no reluctance to accede to the patriotic call for an upward review of the earlier proposed 2.5 per cent contribution to 10 per cent.
We are not unmindful of the general principle of the bill and its intendment to find lasting solution to the perennial conflicts between oil bearing communities and the oil multinationals that have had dire consequences for accruable revenues to the national treasury, social stability and environmental preservation. As captured in the bill: “The objectives of the host communities development trust shall include; to finance and execute projects for the benefit and sustainable development of the host communities within the scope of funds available to the Board of Trustees for such purposes; facilitate economic empowerment opportunities in the host communities as well as advance and upgrade educational development for the benefits of members of the host communities”.
It is to take care of the above that the bill provides that “Each settlor, where applicable through the operators, shall make an annual contribution to the applicable host community development trust fund of an amount equal to 2.5 per cent of its actual operating expenditure in the immediate preceding calendar year in respect to all petroleum operation affecting the host communities for which the applicable community development trust fund was established”.
The simple point being made by the people through the governors is that the proposed contribution to fund the objectives of the bill will not be sufficient to deliver on the mandate and therefore needs to be increased. This, in our view, is not asking for too much if the Federal Government truly and sincerely wishes to permanently put to rest the devastating issues of militancy, economic sabotage, environmental pollution, youth restiveness and related matters, and uplift the condition of the people, giving them a sense of belonging and guaranteeing them a safe, secure, productive and healthy existence.
To this end, we urge the National Assembly to leave no stone unturned in ensuring that this time around, the PIB does not suffer the fate of its predecessors and is passed into law without further delay. In this regard, we rely on the commitment already made by the President of the Senate and Chairman of the National Assembly, Senator Ahmad Lawan. We believe that a timely passage of the bill will not only bring the desired sustainable development in the petroleum industry but will save lives and secure the future of Nigerians.
On the part of the Federal Government, we expect President Muhammadu Buhari to expeditiously sign the bill into law as soon as it gets to his table and muster the political will to enforce its provisions and ensure compliance from recalcitrant, negligent and out rightly dubious oil giants who would stop at nothing to sacrifice the blood of the people for filthy lucre. The federal authorities must not hesitate to invoke the relevant sections of the bill which prescribe the revocation of the licences of errant companies whenever it becomes necessary to safeguard the sanctify of the law and uphold the interest of the people.
Finally, we sincerely hope that the people of the Niger Delta region will not only ask to receive without a corresponding willingness to assume the attendant responsibility. As it is, the bill already provides that where in any year, an act of vandalism, sabotage or civil unrest occurs that causes damage to petroleum and designated facilities or disrupts production activities within the host community, the community shall forfeit its entitlement to the extent of the cost of repairs of the damage that resulted from the activity. The people must therefore realise that a crisis-free and more conducive atmosphere for oil production activities directly translates to more development projects and better life for them. This message must accompany the demand of the governors.

Editorial

No To Political Office Holders’ Salary Hike

Published

3 days ago

September 22, 2025

Uchechukwu Okwum

Nigeria’s Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has unveiled a gratuitous proposal to increase the salaries of political and public office holders in the country. This plan seeks to fatten the pay packets of the president, vice-president, governors, deputy governors, and members of the National and State Assemblies. At a time when the nation is struggling to steady its economy, the suggestion that political leaders should be rewarded with more money is not only misplaced but insulting to the sensibilities of the ordinary Nigerian.

What makes the proposal even more opprobrious is the dire economic condition under which citizens currently live. The cost of living crisis has worsened, inflation has eroded the purchasing power of workers, and the naira continues to tumble against foreign currencies. The majority of Nigerians are living hand to mouth, with many unable to afford basic foodstuffs, medical care, and education. Against this backdrop, political office holders, who already enjoy obscene allowances, perks, and privileges, should not even contemplate a salary increase.

It is, therefore, not surprising that the Socio-Economic Rights and Accountability Project (SERAP) has stepped in to challenge this development. SERAP has filed a lawsuit against the RMAFC to halt the implementation of this salary increment. This resolute move represents a voice of reason and accountability at a time when public anger against political insensitivity is palpable. The group is rightly insisting that the law must serve as a bulwark against impunity.

According to a statement issued by SERAP’s Deputy Director, Kolawole Oluwadare, the commission has been dragged before the Federal High Court in Abuja. Although a hearing date remains unconfirmed, the momentous step of seeking judicial redress reflects a determination to hold those in power accountable. SERAP has once again positioned itself as a guardian of public interest by challenging an elite-centric policy.

The case, registered as suit number FHC/ABJ/CS/1834/2025, specifically asks the court to determine “whether RMAFC’s proposed salary hike for the president, vice-president, governors and their deputies, and lawmakers in Nigeria is not unlawful, unconstitutional and inconsistent with the rule of law.” This formidable question goes to the very heart of democratic governance: can those entrusted with public resources decide their own pay rises without violating the constitution and moral order?

In its pleadings, SERAP argues that the proposed hike runs foul of both the 1999 Nigerian Constitution and the RMAFC Act. By seeking a judicial declaration that such a move is unlawful, unconstitutional, and inconsistent with the rule of law, the group has placed a spotlight on the tension between self-serving leadership and constitutionalism. To trivialise such an issue would be harum-scarum, for the constitution remains the supreme authority guiding governance.

We wholeheartedly commend SERAP for standing firm, while we roundly condemn RMAFC’s selfish proposal. Political office should never be an avenue for financial aggrandisement. Since our leaders often pontificate sacrifice to citizens, urging them to tighten their belts in the face of economic turbulence, the same leaders must embody sacrifice themselves. Anything short of this amounts to double standards and betrayal of trust.

The Nigerian economy is not buoyant enough to shoulder the additional cost of a salary increase for political leaders. Already, lawmakers and executives enjoy allowances that are grossly disproportionate to the national average income. These earnings are sufficient not only for their needs but also their unchecked greed. To even consider further increments under present circumstances is egregious, a slap in the face of ordinary workers whose minimum wage remains grossly insufficient.

Resources earmarked for such frivolities should instead be channelled towards alleviating the suffering of citizens and improving the nation’s productive capacity. According to United Nations statistics, about 62.9 per cent of Nigerians were living in multidimensional poverty in 2021, compared to 53.7 per cent in 2017. Similarly, nearly 30.9 per cent of the population lives below the international poverty line of US$2.15 per day. These figures paint a stark picture: Nigeria is a poor country by all measurable standards, and any extra naira diverted to elite pockets deepens this misery.

Besides, the timing of this proposal could not be more inappropriate. At a period when unemployment is soaring, inflation is crippling households, and insecurity continues to devastate communities, the RMAFC has chosen to pursue elite enrichment. It is widely known that Nigeria’s economy is in a parlous state, and public resources should be conserved and wisely invested. Political leaders must show prudence, not profligacy.

Another critical dimension is the national debt profile. According to the Debt Management Office, Nigeria’s total public debt as of March 2025 stood at a staggering N149.39 trillion. External debt obligations also remain heavy, with about US$43 billion outstanding by September 2024. In such a climate of debt-servicing and borrowing to fund budgets, it is irresponsible for political leaders to even table the idea of inflating their salaries further. Debt repayment, not self-reward, should occupy their minds.

This ignoble proposal is insensitive, unnecessary, and profoundly reckless. It should be discarded without further delay. Public office is a trust, not an entitlement to wealth accumulation. Nigerians deserve leaders who will share in their suffering, lead by example, and prioritise the common good over self-indulgence. Anything less represents betrayal of the social contract and undermines the fragile democracy we are striving to build.

Editorial

No To Political Office Holders’ Salary Hike

Published

3 days ago

September 22, 2025

The Tide

Editorial

Rivers’ Retirees: Matters Arising

Published

3 weeks ago

September 8, 2025

The Tide

The Rivers State Government deserves commendation for the manner in which it conducted the last biometric exercise for pensioners in the state. For the first time in many years, the verification process was not only efficient but also humane, a development that has brought relief to a category of citizens that often bears the brunt of neglect.

Unlike previous verification exercises that left pensioners exhausted and unattended, the latest exercise set a refreshing precedent. Retirees were given proper and sumptuous meals, and in addition, the government paid the sum of N10,000 into their accounts to cushion their transportation costs. Such gestures go a long way in demonstrating that those who had laboured for the state are not forgotten in their twilight years.

The measure was particularly necessary given that some pensioners had to travel long distances to reach their verification centres. For elderly men and women, such journeys come with physical and financial strain. By recognising these realities and easing the burden, the government has shown that pensioners deserve dignity, not disdain.

Beyond this laudable act of consideration, the authorities must reflect on the very structure of pension verification. The era of compelling retirees to be physically present for routine verification should be reconsidered. With digital tools and innovation, the government can adopt systems that capture and confirm data without the stress of physical assembly. This is crucial for pensioners residing in other states or even abroad.

While we acknowledge the importance of verification in cleaning up pension records, we cannot ignore the darker side of the matter. It is regrettable that some allowances continue to be paid to deceased pensioners, with relatives fraudulently collecting the funds. The latest biometrics, thankfully, exposed some of these sharp practices. The exercise, therefore, is not only about order but also about justice.

We urge families of deceased pensioners to be patriotic enough to inform the government of the deaths of their loved ones. It is deeply shameful that in some instances, individuals attempted to impersonate late pensioners during the biometrics. Such behaviour undermines the spirit of honesty and deprives genuine retirees of their due entitlements.

The exercise also revealed another important area of concern: the health of pensioners. It is reassuring to learn that the state government has reportedly promised to take over the medical treatment of some retirees who arrived for the biometrics in critical condition. This is a step in the right direction. Elderly citizens, after years of service, should have access to special health care facilities in the state. Setting aside hospitals or designated centres for the aged is not just desirable but necessary.

While pension payments in Rivers State have remained consistent, attention must now be directed towards gratuities. Senior citizens deserve to receive their retirement benefits without the bureaucratic hitches that have often marred the process. After years of loyal service, nothing is more demoralising than to see retirees languish for want of their gratuities. Every worker, as Scripture reminds us, is worthy of his wage.

Retirement, in any civilised society, should not be reduced to a sentence of suffering. In dealing with pensioners, government must consistently wear a human face. The humane manner displayed during this verification exercise should not be a one-off. It must become the norm in all dealings with retirees. Measures must continually be put in place to ensure that they do not feel abandoned by the state they served.

One welcome innovation has already been introduced. The Sole Administrator of Rivers State, Vice Admiral (Rtd) Ibok-Ete Ekwe Ibas, has altered the method of gratuity payment. Pensioners now receive their monies directly into their bank accounts, eliminating the cheque-based system that for years served as fertile ground for corruption. This reform is both pragmatic and forward-looking. Similarly, the implementation of the N32,000 pension harmonisation is also commendable.

Direct payments gratuities ensure transparency and drastically reduce the possibility of diversion of funds. More importantly, they restore confidence in the system and assure pensioners that their entitlements will reach them without interference. In this way, the government has not only safeguarded the process but also upheld the principle of accountability.

Seamless gratuity payment has a ripple effect on the workforce as a whole. When workers are confident that retirement will not plunge them into hardship, the temptation to falsify age in order to remain in service is eliminated. Such reforms, therefore, enhance efficiency, honesty, and productivity in the public service.

In sum, the Rivers State Government has struck a refreshing chord in its handling of pension verification. It has shown empathy, innovation, and accountability. However, the momentum must be sustained, and the focus must shift towards modernising verification methods and prioritising retirees’ welfare in health, gratuity, and dignity.

When retirees are treated with compassion and fairness, the message to those still in service is clear: faithful service to the state will not go unrewarded. The humane verification exercise, though a single event, offers a hopeful glimpse of what governance can look like when people, especially the elderly, are placed at the heart of policy.