Nigerian President Muhammadu Buhari has signed into law the Petroleum Industry Bill (PIB) 2021.
According to the bill recently passed by the National Assembly, oil-producing communities in the Niger Delta will receive half a billion dollars annually from the 3% approved for the ‘Host Communities Trust Fund’.
Additionally, the bill could raise investor confidence in Nigeria’s oil and gas sector and create more jobs for youth, women, and men in the region.
Since the need for the Petroleum industry bill was first raised by the former President Olusegun Obasanjo administration, the passage of the bill has proven to be an absolute nightmare for successive administrations.
In 2018, after the national assembly passed the harmonised version of the bill, titled the Petroleum Industry Governance Bill (PIGB), President Muhammadu Buhari declined to sign it due to “legal and constitutional reasons”.
According to the Special Adviser to the President on Media and Publicity, Femi Adesina;
“Working from home in five days quarantine as required by the Presidential Steering Committee on COVID-19 after returning from London on Friday, August 13, the president assented to the bill Monday, August 16, in his determination to fulfil his constitutional duty.
“The ceremonial part of the new legislation will be done on Wednesday, after the days of mandatory isolation would have been fulfilled.
“The Petroleum Industry Act provides legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities, and related matters.
“The Senate had passed the bill on July 15, 2021, while the House of Representatives did same on July 16, thus ending a long wait since the early 2000s, and notching another high for the Buhari administration.”
President Buhari returned to Nigeria after a medical vacation in London on Friday, August 13, 2021.
The Petroleum industry bill contains five chapters, including governance and institutions, administration, host communities development, petroleum industry fiscal framework and miscellaneous provisions in 319 clauses and eight schedules.
The Senate and House made recommendations on July 1 for 3% and 5% for the host community.
This, however, sparked reactions from stakeholders in the oil industry and leaders in the Niger-Delta region.
Seriake Dickson, senator representing Bayelsa west; Douye Diri, governor of Bayelsa state; and Edwin Clark, national leader of the Ijaws, have argued that 3% is unacceptable.
Representatives of the host communities demanded that they be allocated 10 per cent of the funds because three per cent is not enough to improve the standard of living of their people.
