Editorial
PIB: Supporting 10% Trust Fund
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.
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Editorial
That Oshiomhole’s Call On FG’s Road Projects
There are moments in the life of a legislature when plain speaking becomes a public service. Senator Adams Oshiomhole provided such a moment on the floor of the Senate when he accused the Minister of Works, Senator David Umahi, of manifestly neglecting critical federal arteries in Edo and Delta States, and implored his colleagues to prevail on the Minister to adopt a more equitable and genuinely national approach to road infrastructure delivery. It was blunt, it was uncomfortable, and it was necessary.
The specifics of his complaint deserve restating. Drawing attention to the recent approval of some 20 new road projects despite the parlous state of existing ones, the former Edo State governor lamented that Nigerians cannot travel from Benin to Warri, Benin to Asaba, Benin to Auchi, or Auchi to Okene without encountering severe distress. He alleged a deliberate omission of these corridors from the national budget in the last three years, save for palliative interventions directed by President Bola Tinubu through tax credit arrangements. His question — “What have we done wrong?” — resonates far beyond the chambers of the National Assembly.
We lend our full and unequivocal support to that call. The Auchi-Benin Road, for instance, has been in a deplorable and near-impassable condition for several years, turning what should be a two-hour journey into an all-day ordeal of broken axles, extortionate fares, and despondent commuters. The media have, on multiple occasions, chronicled the suffering of motorists, traders, and students who ply that route. To describe it as a federal road today is to stretch the meaning of the term beyond recognition.
This pattern of sidelining is not confined to Edo or Delta. Even here in Rivers State, the disposition of the Federal Ministry of Works has left much to be desired, particularly along the Eleme axis of the East-West Road. That road, which ought to be a flagship of federal presence in the Niger Delta, has remained in a wretched state for long. Those who use it daily — workers at the Eleme Petrochemical Complex, the two refineries, Onne Port, and the countless ancillary industries — can attest to its deterioration. Work has proceeded in fits and starts without the sustained urgency such a strategic road demands.
The Eleme stretch is not a mere intra-state byway. It is the gateway to the nation’s economic jugular. According to the Federal Ministry of Works and Housing’s 2023 Highway Condition Survey, only about 35 per cent of the country’s 36,000 kilometres of federal roads are rated as being in good or fair condition, with the remainder classified as poor or very poor. The East-West Road, conceived in the 1970s to bind the entire Niger Delta, remains unfinished in critical sections more than four decades after. If it had been treated as a priority, the perennial gridlock, carnage, and economic loss on the Eleme-Refinery junction would have long been consigned to history.
The irony is as painful as it is glaring. The Niger Delta remains the goose that lays the golden eggs. Data from the Nigeria Extractive Industries Transparency Initiative [NEITI 2023 Oil and Gas Audit] show that the region still accounts for over 78 per cent of Nigeria’s federally collected export earnings and about 65 per cent of total government revenue. The National Bureau of Statistics [NBS Foreign Trade Report Q4 2024] similarly confirms that crude oil continues to dominate export receipts. By every metric of equity and economic logic, a region that sustains the national purse deserves first-rate consideration in the allocation of infrastructure, not afterthoughts and tokenism.
Road infrastructure is not largesse to be dispensed by favour; it is the skeleton upon which commerce, cohesion, and citizenship hang. When contracts are concentrated in one geopolitical zone while other zones are left to contend with craters, it erodes trust in the federation itself. The World Bank’s Nigeria Development Update [June 2023] estimated that poor transport connectivity inflates the cost of moving goods by up to 40 per cent and costs the Nigerian economy an estimated $1.5 billion annually in lost man-hours and vehicle maintenance. If we profess to be one country, then equity must be the compass that guides key institutions before any project is executed. Development must spread round, not pool in one place as though other regions do not matter.
There is also a grave security dimension that can no longer be ignored. The deplorable condition of federal roads has become a veritable enabler of criminality. The NBS Crime Experience and Security Perception Survey reported over 2.5 million incidents of kidnapping-related occurrences nationally, with transport workers identifying bad road spots as prime ambush points. When vehicles are forced to crawl at 10 kilometres per hour through failed sections at Auchi, Sapele Road, or Eleme, they become sitting ducks for armed gangs. Fixing bad roads, therefore, is not merely about convenience; it is about safeguarding lives.
By his intervention, Senator Oshiomhole has hit the nail on the head and reminded Minister Umahi of a fundamental constitutional truth: public office is held in trust. The Ministry of Works is not a personal estate where contracts are awarded according to whim or political convenience. It is a national institution funded by the collective resources of Nigerians, including the oil and gas rents from the very communities whose roads are now neglected. The Minister must demonstrate balance, transparency, and a pan-Nigerian outlook in the distribution of projects that impact the daily existence of citizens. Selective neglect breeds suspicion, and suspicion is corrosive at a time when the nation is preaching unity, oneness, equity, and justice.
Consequently, the National Assembly must go beyond rhetoric and assert its oversight powers with vigour. Sections 88 and 89 of the 1999 Constitution [as amended] empower the legislature to investigate and expose any maladministration in the execution of federal projects. If an office holder is not acting rightly, it is the duty of the Senate and the House of Representatives to call him to order. Oversight must not be reduced to budget approval ceremonies; it must translate to field verification, public hearings, and insistence that the Federal Character principle, as enshrined in Section 14(3) of the Constitution, reflects in road awards.
Let the Auchi-Okene, Benin-Warri, Benin-Asaba, and Eleme East-West gangways be restored to motorable dignity. Let priority be given to completing existing, economically vital roads before embarking on new ones. If those who, through their resources, sustain the federation are sidelined in the distribution of tangible dividends, it tells poorly of our nationhood. Bad roads must be fixed, and they must be fixed now, with fairness as the guiding standard.
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