The Senate on Tuesday finally opened debates on the contentious Petroleum Industry Bill (PIB) admitting allegations that South-South Governors in the last 14 years squandered over N11trillion derivation funds.
The deliberations on the Bill which will span three plenary day sessions towards its passage to second reading, saw a first day of intense arguments pitching northern Senators against their southern counterparts.
However of the 364 clause in the Bill only three contentious provisions in the bill that tore the senators apart in their deliberations, which included the financial accommodation of the host communities captured as a
10 percent derivation, the national oil frontier exploration and excess powers of the minister of petroleum.
Earlier attempts at deliberating on the bill in this Senate was resisted especially by northern senators even as their southern counterparts had met several times behind closed doors over the bill.
Reacting to the 10 percent provision in the clause for host communities, Senator Ahmed Lawan (ANPP Yobe North) recommended that it should be removed on the basis that over N11tn paid as derivation in the last 14 years has not be felt in those communities.
He pointedly accused governors of the all producing states in the country saying they cannot account for the over N11trillion derivation funds given to them within the last 14 years
Sen. Lawan, noted that if the provisions of 10% Host community Development fund continues, it will amount to passing the burden of failure of governance in the oil producing areas of the country on other states of the federation whose meager monthly allocations will be further depleted in favour of an over pampered area.
“It is unconstitutional for anybody or bill drafters to come up with a smuggling idea of providing for any other form of derivation fund for oil producing communities in Nigeria when the need for that had been addressed with the 13% derivation fund as enshrinshed in the 1999 constitution apart from other accruing funds to them for the same purpose through the NDDC, the Niger Delta Ministry and even the 2009 amnesty programme which has not ended up till now, all totaling over #11trillion.
“For how long shall we continue to fund development not allowed to take place in certain communities just because they happen to be oil producing communities today.
“It is my submission that the contentious provision of the host Community Fund should be discarded in the bill because other parts of the country are tired of the excessive funding without any corresponding development taking place…”
To buttress his point Sen. Lawan cited a newspaper report which quoted former Information Minister and Niger-Delta, Chief Edwin Clark, lamenting the none existence of development in host communities inspite of the huge derivation funds that has accrued to the communities over the years.
However moves by Senators James Manager (PDP Delta South) and Heneken Lokpobiri (PDP bayelsa south), to water down Sen. Lawan arguments via separate points of order were ruled out by the Senate President, David Mark, who stated that Lawan’s reference to Edwin clark’s comment on wasted oil derivation fund in the Niger Delta published in some of the Newspapers was in order.
Lawan further argued that the National oil Exploration frontier provided for in the bill should be made to be a stand alone independent oil organization in the country and not just a unit of one of the National oil Companies proposed for establishment in the bill.
According to him, making the proposed National Oil Exploration Frontier an independent oil searching or exploratory outfit outside the control of sitting Minister of Petroleum resources will make the required search or exploration of oil in other parts of the country , more effective with high probability of positive result.
Other Senators like Ali Ndume (PDP Borno South), Isah Galandu (PDP kebbi north), Ibrahim Gobir (PDP Sokoto East), Danladi Sankara (PDP jigawa North West) etc, also toed the line of argument of senator Ahmed Lawan by kicking against the 10% Host Community Development Fund in the bill as well as alleged excessive powers given the Minister of Petroleum Resources and the need to make the proposed National Oil Exploration Frontier an independent oil searching body.
In a counter argument however, senator Ifeanyi Okowa said the 10 per cent Host Community development Fund proposed in the bill is not meant to be drawn from the federation account like the 13 per cent derivation but from the net profits of oil companies in the affected oil producing communities.
“ On the controversial 10 per cent host community development Fund provided for in this bill, it is very important that we get better information on it. The right information already obtained by me in thios regard is that the 10 per cent Development Fund will not be given to the affected communities from the federation account but from the net profits of oil companies operating in such communities, meaning that there was no need for the contentions being displayed on the particular provision”.
“We need to allow the Bill pass second reading so that it go for Public hearing where necessary amendments can be made”,he added.
He was strongly backed by Senator Benedict Ayade who maintained that host communities should not be deprived the 10 percent on account of governments failure to go after corrupt leaders who squander the funds.
Senators like Bassey Out from Cross rivers , Nkechi Nwaogu from Abia State, Helen Esuene from Akwa Ibom state, Bukola Saraki from kwara State, all supported the need for the bill to pass the second reading where necessary amendments can be effected.
Senator Saraki said if there is need to carry out reform in the oil and gas sectors in Nigeria to pave way for transparency, accountability, efficiency, optimal productivity etc, then , there is need for the bill to be considered. He advised those opposed to the bill on the grounds of some contentious issues to think Nigeria first before any other thing
Opening the debate earlier the Senate Leader, Victor Ndoma Egba said the bill when passed, will fundamentally alter the legal, fiscal and propriety dynamics and regime of our oil sector. He said it will harmonize and consolidate the diverse and disparate laws, about sixteen of them, that today govern and regulate the sector.
“This bill is easily one of the most important bills to be considered by this distinguished and hallowed chamber. The bill was first introduced in the sixth Senate but legislative action on it could not be concluded as it than that seemed several versions of it were in circulation in the chamber and elsewhere..”
However, midway into the hot debate on the bill, the Senate president, David Mark, left the deliberation for reasons not stated. His deputy Ike Ekweremadu took over the presiding of the Bill.
Further deliberations on the bill continues on the floor of the senate on wednesday and Thursday.