Sylva Under Fire Over 3 Percent Equity, Buhari Begs

President Muhammadu Buhari, yesterday begged host communities of the Niger Delta to accept the three per cent equity allocated to them in the new Petroleum Industry Act, PIA, saying the country lost an estimated $50 billion worth of investments in ten years as a result of non-passage of the Petroleum Industry Bill, PIB, lack of progress and stagnation in the petroleum industry.

The President’s plea came barely twenty-four hours after the Minister of State for Petroleum Resources, Timipre Sylva, said the three per cent equity allocation to the host communities was a fair deal.

It will be recalled that stakeholders in the Niger Delta, especially the host communities, had been up in arms with the National Assembly for approving the three per cent equity and 30 per cent of of the annual profit of the Nigerian National Petroleum Corporation, NNPC, as Frontier Basin Funds, and called on the President not to sign the PIB containing this approvals into law.

However, the Pan-Niger Delta Forum, PANDEF, Host Communities of Nigeria Producing Oil and Gas, HOSTCOM, and other stakeholders of Niger-Delta, yesterday, rejected the President’s plea to accept the three per cent, saying it was too small, and lambasted the Minister of State for Petroleum for insisting that the three per cent provision for Host Communities Development Trust Fund, HCDTF, is a fair deal for the Niger-Delta.

This is even as governors elected on the platform of All Progressives Congress, APC, yesterday expressed support for the new PIA, contending that the President did the right thing in asseting to the PIB.

‘Oil sector stagnated over non-passage of PIB’

But speaking on the passage of the PIA, which preceded the Federal Executive Council, FEC, meeting at the Presidential Villa, Abuja, President Buhari said non-passage of the PIB stagnated the growth of the economy, citing lack of political will on the part of past administrations to actualize the needed transformation.

“The Petroleum Industry Act 2021 creates a regulatory environment that would ensure efficiency and accountability across the oil and gas value chain and reposition NNPC to a commercially-driven National Petroleum Company that is accountable to the Federation.

“The Act also provides for a direct benefit framework that will enable sustainable development of host communities. I appeal to the host communities to look carefully at the contents of the bill which its implementation will bring real and lasting benefits to them.”

President Buhari in a statement issued by his Special Adviser on Media and Publicity, Chief Femi Adesina, said assent of the Petroleum Industry Bill on August 16, 2021, marked the end of decades of uncertainty and under-investment in the petroleum industry.

The President, who also approved implementation steering committee on the PIA, led by the Minister of State for Petroleum, Mr. Timipre Sylva, said further: “We are all aware that past administrations have identified the need to further align the industry for global competitiveness, but there was lack of political will to actualize this needed transformation.

“This lack of progress has stagnated the growth of the industry and the prosperity of our economy. In the past ten years, Nigeria has lost an estimated US$50billion worth of investments due to uncertainty created by the non-passage of the PIB.

“This administration believes that the timely passage of the Petroleum Industry Bill will help our country attract investments across the oil and gas value chain.

“In view of the value our nation and investors will derive from a stable fiscal framework for the oil and gas industry, our administration has found it necessary to work with the two chambers of the National Assembly to ensure passage of the PIB.”

President Buhari noted that signing of the bill was part of the administration’s commitment to building a competitive and resilient petroleum industry that will attract investment, improve the nation’s revenue base, create jobs and support its economic diversification agenda.

He said as a “nation that depends on oil resources for the development of other sectors, Nigeria runs a Petroleum Industry that is governed largely by laws enacted over 50 years ago, such as the principal legislation; the Petroleum Act of 1969 and other obsolete legislation.”

‘Signing PIA is new beginning for oil sector’

He said the Presidential assent to the bill marked the beginning of the journey towards a competitive and resilient petroleum industry that would attract investments to support the nation’s Economic Recovery and Growth Plan, ERGP.

According to him, the Petroleum Industry Act 2021 creates a regulatory environment that would ensure efficiency and accountability across the oil and gas value chain and reposition NNPC to a commercially driven National Petroleum Company that is accountable to the federation.

“The Act also provides for a direct benefit framework that will enable sustainable development of Host Communities. I appeal to the host communities to look carefully at the contents of the Bill which its implementation will bring real and lasting benefits to them.

“Furthermore, the Act provides for deliberate end to gas flaring which would facilitate the attainment of Nigeria’s Nationally Determined Contributions of the Paris Agreement through a funding mechanism to support gas flare out project in host communi-ties,” Buhari noted.

He said the administration believed that the timely passage of the Petroleum Industry Bill would help the country attract investments across the oil and gas value chain.

While directing immediate implementation of the framework for the Petroleum Industry Act, he urged all relevant stakeholders to comply and reposition for full activation within 12 months.

The President said the Minister of State for Petroleum Resources, Timipre Sylva, will head the implementation team, and urged all Ministries, Departments and Agencies, MDAs, to adjust to the transition designed to reposition the economy.

He said: “To consolidate the commitment of this administration to delivering the value proposition of this law, I have approved an implementation framework commencing immediately to ensure the industry envisaged in the new law begins to take shape.

“The implementation process to be headed by the Minister of State, Petroleum Resources is hereby tasked with the completion of the implementation of this Act within 12 months. I am, therefore, directing all relevant Ministries, Departments and Agencies of government to fully cooperate in ensuring the successful and timely implementa-tion of this law.”

President Buhari commended the leadership of the 9th Assembly for their continued pursuit of national aspiration and demonstration of mutual harmony with the Executive in the pursuit of patriotic outcome in passage of PIB.

“I also commend the entire team in the executive that worked tirelessly to ensure the delivery of this strategic legislation for our country. I thank Nigerians and other industry stakeholders for their contributions and support in achieving this historic landmark,” he said.

Other members of the steering committee are the Permanent Secretary, Ministry of Petroleum Resources; Group Managing Director, NNPC; Executive Chairman, FIRS; representative of the Ministry of Justice; representative of the Ministry of Finance, Budget and National Planning; Senior Special Assistant to the President on Natural Resources, Barrister Olufemi Lijadu as External Legal Adviser, while the Executive Secretary, Petroleum Technology Development Fund, will serve as Head of the Coordinating Secretariat and the Implementation Working Group.

The ceremony was attended by the Senate President, Dr. Ahmad Lawan, Deputy Senate President, Ovie Omo-Agege, Deputy Speaker Hon. Ahmed Idris Wase and other lawmakers, members of the Federal Executive Council, FEC, and Group Managing Director of the NNPC, Mele Kyari.

‘3% for oil communities miserly’

But reacting to the President’s plea and statement of the Minister of State, the Pan-Niger- Delta Forum, PANDEF, Host Communities of Nigeria Producing Oil and Gas, HOSTCOM, and other stakeholders of Niger-Delta, dismissed what they described as miserly three per cent allocated to host communities, urging the President to stop taking decisions that would escalate tension in the oil-rich region.

Very sad remark –PANDEF

In their reactions, the regional group in a statement by the National Publicity Secretary, Ken Robinson, National President, Host Communities of Nigeria, HOSTCOM, Chief Benjamin Style Tamanrebi and former Provost Marshal, Nigeria Army, Brigadier-General Don Idada Ikponmwen, retd., said it is ridiculous that President Buhari, who disregarded the passionate supplication of people of Niger-Delta to increase host communities’ three per cent to 10 per cent, is seeking their support after he had signed the PIB.

PANDEF, noticeably peeved by Sylva’s continued defence of three per cent for host communities, declared: “Though, he (Sylva) is a bona fide and illustrious son of the Niger Delta, people need to understand that he is an appointee of President Muhammadu Buhari. With the President being his direct boss as substantive Minister of Petroleum, he would do and say what ‘they’ want him to do and say, unless he wants to lose his job.”

“Suffice to say that there is nothing satisfactory about the paltry three per cent provision for the Host Communities Development Trust Fund. Besides, with the overwhelming powers given to the ‘settlors’ on administration of the Trust, the Act obtrudes servility on host communities,” the group said.

On Buhari’s request to stakeholders, PANDEF noted: “The signing of the PIB into law by Mr. President, despite protests from the people of the Niger Delta, is insensitive and remains unacceptable to all well-meaning Niger Deltans.

“PANDEF considers it a clear message to the Niger Delta people that how they feel and what they say do not count at all in the schemes of the Nigerian project.”

We’re shocked–HOSTCOM

HOSTCOM National President, Chief Tamanrebi, who maintained that three per cent was offensive to the host communities producing oil and gas, said: “We are the ones pleading with President Buhari to consider the host communities by rejecting the three per cent for Host Communities Development Trust Fund in the PIA. He should not be asking us to accept three per cent when he knows that our demand is 10 per cent.”

“Host communities and the entire Niger-Delta made the demand for him to increase this three per cent to 10 per cent before he signed the PIA. Mr. President should have listened to our plea before signing the Act.”

Chief Tamanarebi completely frowned on the statement by Chief Sylva that three per cent is a fair deal for host communities.

He said: “He does not know what he is saying. How can they be coming to our house and did not involve us in what they are coming to do? How will it work? Who will show them round the house they are coming into? Do you just come to somebody’s house and start sauntering around on your own?

“We are actually surprised that Sylva who is from the Niger Delta is talking this way because, today, he is working for government. How can he be talking about such an important issue affecting the people of Niger Delta where he comes from without availing himself of the true feelings of the people?

“He is not telling the truth. Is the $500 million he is saying will accrue to the host communities from the three per cent static? Is it going to be coming yearly? That is the question. The other day, the managing director of NNPC said $16 billion is the operating cost. How did they come about that? We, as host communities, do not know how they came about that.

“We are saying as host communities, we should be part of the business so that we know what is really happening. For instance, all of us will go to the forest like a fisherman will go to the river, we do the fishing together, whatever we have caught, we know and nobody gives a conflicting account.

“If we are part and parcel of the system, we would know what is happening and not the present situation of things shrouded in secrecy.

“If we are losing, we will know we are losing and if we are gaining, we know we are gaining. How can you tell us that funds from gas that is poisoning us should be transmitted midstream. Is that a fair deal that we, the communities, should not benefit from gas flare fund and some other persons will be managing the fund? I ask again, is that a fair deal?”

Quite irritating, says Ikponmwen

In his reaction, former Provost-Marshal, Nigerian Army, Brigadier-Gen Ikponmwen, retd., said the plea to accept three per cent got more vexatious when juxtaposed with the 30 per cent for exploration of oil from non- oil areas.

“Both the executive and National Assembly must take the blame for this mindless move that appears to have turned a blind eye to the hazards faced daily by oil communities and the grave damage to the environment of the oil producing communities.

“It may still be pertinent to advise the President Buhari administration that there is compelling need to avoid decisions likely to escalate tension and agitation in already volatile communities.

“Oloibiri provides a striking insight as to the neglect that awaits oil communities in Nigeria in the foreseeable future. One would have thought that those in power at the centre would see the imperative jump-starting the rebuilding and replenishing our depleting oil communities even now,” he added.

Buhari getting wrong advice — Amadhe, Isoko leader

Reacting yesterday, frontline leader of the Isoko nation and immediate past President General of Isoko nation, Chief Iduh Amadhe, stated: “He (Sylva) is our son and he is supposed to know what we are suffering. We are our own problem. If we have a son like Sylva in government, he is supposed to protect our interests if there is an uproar and agitation that what we are talking about is not enough.

“If he had given advice to the President on the need to make addition to what we have been given, that would have been more suitable than the comment he made. It shows that he does not have the interest of the Niger Delta at heart.

“The President is not aware of the pains we are passing through because his people are not advising him appropriately. How are we going to blame the. President when our own son is saying what we have been given is fair enough?

Our leaders failed us –Unagha, APC stalwart

Similarly, former All Progressives Congress, APC, presidential aspirant, Alhaji Mumakai Unagha, told Vanguard: “The Minister of State for Petroleum, Chief Timipre Sylva, is in government, therefore, he must protect the government he is serving for his take home package.

“After he leaves government, his vision will now be clear, seeing what we are complaining about. I do not know from the angle he is talking or seeing issues. There are so many defects in the PIB which was passed to serve certain interest groups, not oil producing areas.

“What is three per cent? If we cannot be considered for 20 per cent, at least five per cent, I would not want to trade words with the minister, let him advise the President on the Warri and Port Harcourt Refineries. Not too long, before 2023, he and those representin us in the National Assembly will realise the enormity of what they have done to their region.

“Perhaps Bayelsa State does not need five per cent, others need it, Urhobos need it for the age-long neglect. Let me appeal to our conscience, especially those representing us, to do away with sentiment for the sake of the people as their constituency is more paramount before Nigeria.

“They should take a cue from their northern counterparts, otherwise, the spirit of late Adaka Boro, Ken Saro-Wiwa and many others that died in the cause will continue to go after them. However, let me advise our people not to be violent, but engage in intellectual and diplomatic struggles in driving our point home.”

‘It’s robbing Peter to pay Paul’

Also, President of Egbema Voice of Freedom, EVF, in Rivers and Imo states, Evaristus Nicholas, stated: “Part 3 of the PIB, Section 242, talks about three per cent of the oil proceeds allocated the host communities. First, there is no clarity as to how this three per cent is to be shared in the host communities, either by the way of the percentage of oil production to the host.”

“It is not good for us to create a law that will cause communal crisis. For example, OML 61 operated by NAOC/Eni where communities in Rivers, Imo and Delta states are part of the host communities, there is no clear distinction on how these communities will benefit.

“Three per cent is too small for the host communities, knowing too well that the communities are the hens that lay the golden eggs. If you go beyond this you will also begin to question why the Act will prescribe that oil firms will be part of the people to select who should be represented in the Community Trust.

“It should not be so. Right now, if you look at it, you will see clearly that the multinationals prefer those who work in their favour in the community. Most times, they pitch tent with the leadership of the communities to ensure they have their way.

“If this is not changed, the host communities would be made to look like beggars in the Act. The three per cent is an indirect way of sending 30 per cent oil revenue to the North instead of the South.”

Crisis imminent –Effiong, activist

Constitutional lawyer and human rights activist, Inibehe Effiong, said: “The leaders of the region were corrupted and irresponsible, that is why the bill was passed. What the assent entails is that the Niger Delta will suffer for it, because three per cent for the host communities is insufficient to address the issue of environmen-tal degradation.

“The way it is going, it may result in agitation. When people are talking and you do not listen, it may result in other ways of communication. It seems Nigeria only listens to violence. What the National Assembly and Federal Government are saying is that they cannot listen to Niger Delta people, except they resort to violence.”

Buhari insincere –Usoro, Eket leader

Akwa Ibom community leader and member, Board of Trustees, Eket Integrity Forum, Chief Usoro Usoro, who faulted Chief Sylva’s standpoint that three per cent to host community fund was a fair deal, said: “We are saying three per cent cannot compensate for the negative effect of oil exploration Niger Deltans are going through.

“Three per cent is not a fair deal; it is not okay at all, because already Niger Deltans have suffered so much as a result of oil exploration. And the President is not sincere to us, he is not considerate enough..

“If he was considerate enough, if he was trying to be just to the people of Niger Delta, he would not have signed that bill into law, because it does not represent what we want.

“Well, Timipre Sylva is only talking like somebody who is in government, so we are not surprised that that is coming from him. Right now, he is on the side of government and not on the side of the people. And you are now saying you are taking 30 per cent to explore oil that you are not even sure you would find in those areas.”

Chief Usoro also faulted the arguments that the governors have not been able to utilize the 13 per cent derivation properly.

“That may be true, but let the Federal Government do its own part; let the Federal Government be just to the people that are going through these problems, then, eventually the people will now hold the governors responsible,” he said.

Let’s seek amendment –Ambakederimo

However, Joseph Ambakederimo, an indigene of Agbere, a host community in Sagbama council area of Bayelsa State and Convener, South South Reawakening Group, said: “Yes, it is a fair deal for now, in view of the circumstances surrounding the geopolitics of oil and also for the need to attract investors to the sector.

“It is only when investors come we can talk of assured percentage of any value. The most import-ant thing right now is for all stakeholders and government to provide the enabling environment for investors and their investments to thrive without which nothing will accrue to the communities. The continued flow of the needed investment to the sector is key.

“The law is not cast in stone, we can seek amendment anytime, even today we can begin to start the process of amending the portions that are in contentious. At least, democracy affords us this opportunity.”

APC govs back Buhari on PIA

Meanwhile, APC governors yesterday threw their weights behind President Muhammadu Buhari in signing the PIB into PIA.

The governors in a statement signed by chairman of Progressive Governors Forum and governor of Kebbi State, Abubakar Atiku Bagudu, said the President’s action is a demonstration of the party’s commitment to economic restructuring.

The statement recalled how President Muhammadu Buhari had on Monday, assented to the Petroleum Industry Bill PIB, noting that by so doing,he had restructured the operations and management of the Nigerian oil and gas industry.

The statement read: “With the coming into law of the new Petroleum Industry Act, our party under the leadership of President Buhari has demonstrated unwavering commitment to change Nigeria democratically.

“After more than two decades of endless national debates and stalemate, there is today a new Petroleum Industry Act in the country, which has provided six months transition for the emergence of new institutional framework for the operations of oil and gas industry in the country.

“The Progressive Governors Forum PGF commends the President for this historic feat of moving the nation forward to a new democratic era of governance and business management of the oil and gas industry.

“With Nigeria National Petroleum Corporation, NNPC, now unbundled, and in its place, three new structures – Nigerian Upstream Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority and Nigerian National Petroleum Comp-any Limited – stronger accountability structures, each with a board draw-ing representation from stakeholders in the oil and gas industry is instituted.

“The monopoly status of the old NNPC, which vested it with both the powers of regulating the industry as well as extraction and sales of crude oil in both the upstream, midstream and downstream has been abolished.”

The governors explained that with the new Act, the task of regulation would be vested in the two regulatory bodies created by the law.

“The extraction and sales of crude will now be undertaken by both the new Nigerian National Petroleum Company Limited and other private companies in both the upstream, midstream and downstream, in line with regulatory standards respectively provided by the Nigerian Upstream Regulatory Commission and Nigerian Midstream and Downstream Petroleum Regulatory Authority created by the Act.

“In addition, the Act also created a Host Communities Development Trust to be managed by Board of Trustees. As provided by the Act, 3% of profit from the operations of oil and gas businesses will be used for the development of the host communities.

“It is noteworthy that this is in addition to the existing 13% derivation to oil producing states and funds allocated to Niger Delta Development Commission NDDC, which the President has continuously emphasised that all the resources must be put to judicious use for the benefits of the people in the oil producing areas.

“Similarly, Part III, Section 9 (4) and (5) of the Petroleum Industry Act provides for the creation of ‘a Frontier Exploration Fund which shall be 30% of NNPC Limited’s profit oil and profit gas as in the production sharing, profit sharing and risk service contracts’.

“This is a provision made to ensure that NNPC Limited transfer 30% to the Frontier Exploration Fund dedicated for the development of oil exploration activities in all parts of the country subject to appropriation by the National Assembly. This provision will guarantee exploration activities in the country beyond discretionary decisions of the management of the new NNPC Limited.

“We join all Nigerians to celebrate this important achievement in the operations and management of Nigerian oil and gas sector. We also want to use this opportunity to congratulate members of the two chambers of the National Assembly for the successful passage of the PIB.

“Without the cooperation of members of the National Assembly, in particular the leadership, with all the discordant voices around the debate leading to the passage of the PIB, the new law would have been aborted, as was the case in the past.

“The new Petroleum Industry Act present a convincing credential of the commitment of our party, All Progressives Congress, APC, to restructure Nigerian economy through democratic process in line with provisions of the 1999 Nigerian Constitution as amended.

“Inspired by our leader, President Muhammadu Buhari, we are confident that democratic engagements based on strategic considerations of legislative proposals in the National Assembly to make or review existing laws, the Nigerian economy will be fully restructured.

“Even critics of our party, APC, and our governments cannot ignore the fact that the coming into law of the Petroleum Industry Act is an important democratic milestone. It signposts the commitment of our party and our government to develop the oil and gas sector and resolve all the challenges associated with the operations of the sector.

“With the new Act, there should be remarkable improvement in revenue collection from the oil and gas sector. This is expectedly the Next Level governance initiatives our party has promised Nigerians during the 2019 campaigns.

“The PGF congratulates the President for achieving this important milestone. We pledge our commitment to support the process of transition to the new era of oil and gas operations and management as provided by the new Petroleum Industry Act 2021.

“We remain committed to a democratic process of negotiating the reform of our Republic to make it more responsive to the needs of Nigerians. Similarly, we are indeed more confident that the ongoing process of constitutional amendment in the National Assembly will produce more reforms of the structures of the Nigerian economy.

“Accordingly, the PGF would continue to collaborate with the National Assembly and the Federal Government to mobilise public understanding to accelerate the process of change in the country. Through our engagements with the leadership of the National Assembly, we would also continue to provide all the needed support to enhance the already existing synergy between both the executive and legislative arms of government.

“We will continue to draw lessons from President Muhammadu Buhari’s leadership and take all the necessary steps to replicate it in our respective states.”

By Vanguard.