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

Charge Before New Rivers Council Helmsmen

Published

7 hours ago

September 29, 2025

The Tide

On the 30th of August, Rivers people trooped out to participate in local government elections conducted across the state. These elections, which produced new chairmen and councillors for the 23 local government areas (LGAs), were organised by the Rivers State Independent Electoral Commission (RSIEC). The exercise has ushered in a new crop of grassroots leaders whose shoulders now bear the responsibility of steering the affairs of their respective councils. With the polls concluded and winners duly announced, the time has come for the newly elected officials to roll up their sleeves and begin the hard work of governance.

According to the results declared by RSIEC, the All Progressives Congress (APC) secured a dominant lead, winning chairmanship seats in 20 of the 23 local government councils, while the Peoples Democratic Party (PDP) clinched the remaining three. This outcome not only reflects the current political dynamics in the state but also places a significant weight of expectation on the shoulders of the APC-led councils to justify the confidence reposed in them by the electorate. It is imperative that political rhetoric now gives way to tangible development, especially at the grassroots level where government is felt most directly.

Following the elections, the successful chairmen were officially sworn into office by the former Sole Administrator of Rivers State, Vice Admiral (rtd) Ibok-Ete Ekwe Ibas. The solemn ceremony marked a transition from campaign promises to the reality of public service. With their inauguration complete, the time for celebration has ended; the time for delivery has commenced. The electorate now awaits meaningful action that reflects the hopes and aspirations of the voting public.

As helmsmen of their various LGAs, these leaders must quickly settle down to work. Their constituents expect them to provide direction, formulate policies, and execute programmes that will uplift communities long neglected. The local government tier is closest to the people and, as such, must rise above politicking to meet the everyday needs of the citizenry. It is not enough to occupy office; they must make their impact visibly and positively felt across their domains.

The Supreme Court ruling mandating direct allocation of funds to local governments—although not yet fully implemented—is a welcome development that underscores the autonomy of the third tier of government. Once this is operationalised, the excuses often cited for underperformance will no longer hold water. With funds directly accessed from the Federation Account, council administrations will be better empowered to meet the developmental needs of their localities, if only they manage resources judiciously and prioritise the right projects.

The onus is now on the chairmen to contribute meaningfully to the broader development of Rivers State. The state government cannot and should not be expected to do everything. Local government councils have defined responsibilities—ranging from rural infrastructure, primary healthcare, and basic education to waste management and local security—that must be adequately addressed. It is high time they stopped passing the buck and started acting as the elected leaders they are.

We extend our congratulations to all who emerged victorious in the elections. However, with this victory comes great responsibility. It is no longer about party affiliations or electoral campaigns; it is about governance. The chairmen must launch people-centred projects that will genuinely improve the lives of the rural populace—projects in water supply, road maintenance, school renovation, and youth empowerment, among others. Let their tenure be remembered for its impact, not its slogans.

Central to their mandate should be the welfare of workers. Council employees form the engine room of local governance, and their morale significantly affects service delivery. The new chairmen must ensure regular payment of salaries, staff training, and a conducive working environment. Neglecting this vital aspect will only hinder whatever grand plans they may have for their LGAs.

It is also essential to institute a robust peer review mechanism. The new LG officials should not operate in isolation; rather, they should learn from one another, share ideas, and compete constructively in a bid to outperform each other in service delivery. Healthy competition among council areas will drive innovation and foster accelerated development. Such a system will also help the public identify high-performing councils for emulation.

Given the typically short tenure of council administrations, it is crucial that they focus on projects that are realistic and impactful. Time and resources should not be wasted on white elephant ventures that are neither sustainable nor beneficial to the people. Instead, chairmen should pursue programmes that match their timelines and address immediate community needs.

Peace and security must remain a cardinal objective for all council steersmen. Regardless of who facilitated their election or what political loyalties they hold, they must ensure peace reigns in their areas. Development cannot thrive in an atmosphere of tension and distrust. These leaders must work closely with traditional rulers, youth groups, and civil society organisations to maintain law and order.

A critical understanding must also prevail—that chairmen are leaders of the people, not just leaders of political parties. They must conduct themselves as impartial administrators serving all constituents, irrespective of political affiliations. Additionally, they must work harmoniously with the state governor, who remains the leader of the state. Petty rivalries and political infighting serve no purpose in the development agenda.

Now that the elections are over and governance has begun, it is essential for these chairmen and councillors to adopt an inclusive approach. They must carry everyone along—party members and opposition alike—in their development plans. Creating division or playing favourites will only fracture communities and stall progress. Leadership at the grassroots demands fairness, equity, and a listening ear.

Rivers people have played their part by coming out to vote. The baton has now been passed to the new council helmsmen. They must seize the opportunity to leave lasting legacies in their communities. History will not judge them by the number of rallies they held or the speeches they gave, but by the quality of life they brought to their people. Let them not squander this moment.

Editorial

No To Political Office Holders’ Salary Hike

Published

7 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.