PIB: Reps Step Down Conference Committee Report …As Senate Passes Harmonised Version Amidst Protests

The House of Representatives, yesterday, in Abuja, stepped down the report of the National Assembly conference committee on Petroleum Industry Bill (PIB).
The report was earlier scheduled for presentation, but was stepped down for reason that may not be unconnected with percentage due to host communities.
The Chairman, Committee on PIB, Rep. Mohammed Monguno, was billed to present the report before it was stepped down.
The report was on the Conference Committee on a Bill for an Act to provide legal governance, regulatory and fiscal framework for the Nigerian Petroleum Industry and the development of host communities.
The House had hurriedly dissolved into an executive session to iron out some grey areas on the PIB that was deemed unacceptable to some lawmakers.
Some of the lawmakers, mainly from the oil producing states, had earlier gotten wind of the conference report that recommended three per cent for the host communities.
The lawmakers, therefore, engaged in a shouting match before commencement of plenary to consider the Electoral Act Amendment Bill and the conference report on PIB Bill.
Rep. Chinyere Igwe (PDP-Rivers), Rep. Boma Goodhead (PDP-Rivers) and Bede Eke (PDP-Imo) were seen visibly angry, and shouting that they were not going to accept the three per cent for host communities.
The trio and other lawmakers insisted that it must be five per cent or nothing.
The House had earlier agreed on five per cent while the Senate agreed on three per cent, but the conference committee report via harmonisation settled for the three per cent.
This, however, did not go down well with the lawmakers, which resulted in shouting match and eventually snowballed into a rowdy session.
The Senate had earlier recommended three per cent for the host communities.
However, sequel to the row, the Speaker of the House of Representatives, Hon Femi Gbajabiamila, and other principal officers walked into the chamber without the usual announcement.
Gbajabiamila immediately dissolved the House into an executive session.
Meanwhile, the Senate, yesterday, passed the harmonised Petroleum Industry Bill which was produced by a conference committee of both chambers of the National Assembly, last week.
The harmonised version of the PIB was submitted for consideration by the federal lawmakers, yesterday at plenary.
Prior to the approval of the proposed legislation through voice votes, senators from the South-South geopolitical zone protested against the proposed three per cent equity share for the oil host communities.
President of the Senate, Dr Ahmad Lawan, however, prevailed on Senator Seriake Dickson to back down on his threat to lead his colleagues to stage a walkout.
It would be recalled that the Senate had argued during the consideration of the report, that the three per cent amounted to half a billion dollars.
Explaining why the five per cent was reduced to three per cent shortly after the plenary, the Chairman of the Senate Committee on Petroleum Resources (Downstream), Senator Sabo Mohammed Nakudu had explained that the earlier percentage which was 2.5 was increased to five per cent.
He had added that it was reduced after the Group Managing Director of NNPC, Mele Kyari, explained that five per cent was a huge amount of money.
He had said that “the three per cent amounts to half a billion dollars.”
He had added that the enabling environment needed to be created to attract investors because fossil oil was fast going out of fashion.
Also, the Senate spokesperson, Senator Ajibola Bashiru had said, “On the three per cent that was approved for the upstream operating expenditure, from the projection made by the NNPC GMD, who briefed us, it will amount to $502.8million for the host community development fund.
“That is a huge amount of money that we believe the host community will definitely benefit from.
“So, the three per cent operating expenditure will annually amount to $502.83million.
“The initial projection was 2.5 per cent and it was increased to 3 percent. The caveat is that we can always amend the bill as time goes on.”