Editorial

PIB: No To 3% Host Community Fund

Published

4 years ago

July 12, 2021

For about one and half decades, Nigeria has been on a long-drawn-out trip on the Petroleum Industry Bill (PIB), with many assumptions and assurances failing overtime under past National Assembly leadership. However, two years into the Ninth Assembly, the Bill was passed upon adopting all the 318 clauses as put forward by the Committee on PIB following some modifications. With this latest outcome, it seems the Ninth Assembly is set to make history, if the PIB gets President Muhammadu Buhari’s acquiescence.
A presidential committee set up in 2007 to look into the oil and gas sector came up with the concept of the PIB, which intended to advance transparency at the Nigerian National Petroleum Corporation (NNPC) and the Nigeria’s share of oil fund. Later, the Bill was moved to the National Assembly in December, 2008 by the late President Umaru Yar’Adua.
However, the proposed legislation was never passed into law because of criticisms from the International Oil Companies (IOCs) and the NNPC over its compositions. In 2015, the former Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, declared that the PIB was to be amended to facilitate its passage. It was later separated into distinct parts to focus on numerous aspects of the oil enterprise.
Despite the many unsuccessful attempts, the passage of the PIB was one of the preferences specified by the Ninth National Assembly in its legislative calendar. Members of the Senate and the House of Representatives, returning to work after their inauguration on June 11, 2019, pledged to break the ‘jinx’ around the Bill and reform the oil and gas sector.
President Buhari, on September 29, 2020, had passed on the PIB to the federal legislators. The Bill moved through the first and second reading without differing views from the lawmakers, and consequently, an ad-hoc committee was set up by the House for the public hearings, while the Senate Committees on Petroleum Upstream, Downstream and Gas, directed affairs for the Senate.
PIB seeks to get rid of the Petroleum Equalisation Fund (PEF) and Petroleum Products Pricing Regulatory Agency (PPPRA) and supplant them with a new agency to be known as Nigerian Midstream and Downstream Regulatory Authority (NMDRA), which will be responsible for the technical and commercial regulation of midstream and upstream petroleum operations in the industry.
Similarly, the Bill plans the establishment of Nigerian Upstream Regulatory Commission to be liable for the technical and commercial regulation of upstream petroleum activities. It further requests the commercialisation of the NNPC to develop into Nigerian National Petroleum Company to be incorporated under the Companies and Allied Matters Act by the Minister of Petroleum Resources.
The Federal Government had offered 2.5 per cent as royalty for the host communities in the proposed law. But, that was inadequate and consequently turned down by the host people who demanded 10%. But the Senate and the House of Representatives ceded only three and five per cent equity shareholding to the oil and gas producing communities.
While we laud the National Assembly for conducting the PIB through which had been in limbo all these years, we repudiate the preposterous 3% allotted to host communities and maintain that it be re-examined upwards for harmony, justice and equity. The minimum we demand is the 5% limit of the House with a periodic evaluation. The action of the Senate undermines the 65 years of oil discovery and exploration activities in the region and the resultant devastation of the environment.
Of similar concern in the PIB is the 30% share of profit reserved for exploration in the oil basins or frontier states. This is outrageous, fraudulent and provocative and should be expunged immediately. It is unreasonable to set aside that much for the exploration of a product that is shifting away with fading value.
Our stand on the ownership structure of the NNPC is consistent with that of the Southern Governors’ Forum. Although commercialising the Corporation will open it up for competition and make it more profitable, we think that its ownership should be in the trust of the Nigeria Sovereign Investment Authority (NSIA), not the Federal Ministry of Finance, since all tiers of government have interests in it.
It is getting clearer that the beneficiaries of the Nigeria’s flawed federal system are not rushing to shift ground. The governors should impress it on the lawmakers from the South to press home these demands. It is unpardonable to see the unjust laws and policies coming out of the Buhari regime with no serious pushback from Southern and Niger Delta legislators.
These National Assembly representatives, especially from the Niger Delta are disconcerting. How could they observe helplessly their counterparts from other parts of the country appropriate three and five per cent to host communities? Perhaps, they were slumbering and dozing when final considerations on the Bill were on. They have failed their people and are undeserving of a return.
The PIB must be revisited with the views of the host communities and stakeholders in the Niger Delta region considered. It is our opinion that the ongoing constitutional emendation should predate the review and ratification of the PIB, as most of the imbalance and marginalisation discovered in the passage of the Bill are predicated upon the deliberate malignancy in the 1999 Constitution.

Editorial

No To Political Office Holders’ Salary Hike

Published

5 days ago

September 22, 2025

The Tide

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

5 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.