PANDEF fumes, North to get 30% oil profit share as Buhari assents to PIB

By AdvocateNews on 16/08/2021

Share on facebook Yahoo mail icon Gmail icon

Views: 668

President Muhammadu Buhari
President Muhammadu Buhari

…Using Southern oil money for exploration in Sokoto, others fraudulent, says Edwin Clark-led group

The quests for oil in the Northern region and other parts of the country have received a significant boost with the signing of the Petroleum Industry Bill 2021 into law by President Muhammadu Buhari on Monday.

However, the Pan Niger Delta Forum lambasted the President for assenting to the PIB without the amendment of some controversial sections, adding that the move was a way to siphon oil money from Southern Nigeria to the North.

By assenting to the bill which legislation was stalled for about 20 years before it was recently passed by the 9th National Assembly, the President approved at least 30 per cent of the profit to be generated by the proposed Nigerian National Petroleum Company Limited to go to the exploration of oil in ‘frontier basins’, according to Section 9 of the PIB.

Section 9(4) of the PIB reads, “The frontier exploration fund shall be 10 per cent of rents on petroleum prospecting licences and 10 per cent on petroleum mining leases; and 30 per cent of NNPC Limited’s profit oil and profit gas as in product sharing, profit sharing and risk service contracts. The fund shall be applied to all basins and undertaken simultaneously.”

Section 9(5) adds, “NNPC Limited shall transfer the 30 per cent of profit oil and profit gas to the frontier exploration fund escrow account dedicated for the development of frontier acreages only.”

The PIB also makes provision for the establishment of a Nigerian Upstream Regulatory Commission which will be responsible for the technical and commercial regulation of upstream petroleum operations and also promote the exploration of frontier basins in Nigeria.

The frontier basins include Chad Basin, Gongola Basin, Sokoto Basin, Dahomey Basin, Bida Basin, Benue Trough, Anambra Basin, amongst others.

At the moment, crude oil is obtained from eight states in the Niger Delta region which include: Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers States.

The 19 northern state governments had in 2016 intensified their search for oil and gas in the region with the appointment of a British firm to carry out the exploration activities which was sequel to Buhari’s directive to the Nigerian National Petroleum Corporation to increase the tempo of the crude oil find in the North-East.

With Monday’s presidential assent to the PIB, which would regulate all matters in the oil sector, the oil exploration move of the 19 northern governors had received a huge boost.

But the group led by elder statesman, Chief Edwin Clark, told The PUNCH that the President, by signing the PIB into law without the amendment of some clauses, showed that he had no feeling for the people of the Niger Delta who continue to suffer the environmental degradation which has been the consequence of oil exploration in the zone.

PANDEF spokesman, Ken Robinson, said this in a chat with The PUNCH on Monday.

The group described as outrageous and fraudulent, the allocation of 30 per cent for the exploration of oil in the frontier basins, noting that oil business is a private affair and that investors should use their resources in the search for oil anywhere in the country.

PANDEF said it is a very “sad and bad day” for Nigeria that despite the overwhelming outcry of the people of the South-South zone, the President still went ahead and signed the PIB into law.

PANDEF had insisted that the equity share must be 10 per cent for host communities and rejected the 3 per cent allocated for host communities in the just signed Petroleum Industry Act.

The group’s spokesman said, “It is very unfortunate that in spite of the outcry and the condemnation that greeted the paltry 3 per cent provided for the development of the host communities and the outrageous 30 per cent of the NNPC limited profit allocated for the exploration of oil in the frontiers, Mr President has gone ahead to endorse the bill into law.”

On the allocation of 30 per cent for oil exploration in the frontier basins, Robinson said, “It is an outrageous provision, it is fraudulent, it is a way of siphoning Nigeria’s money. When you allocate 30 per cent of profit for exploration. The oil exploration in the Niger Delta was not carried out with Nigeria’s money. The oil industry is a business and if anybody wants to explore oil, they should spend their money, they should invest their money.

“All that the government needs to do is to create the right environment, the enabling environment for investors to go there to explore oil. If they find oil, fine; if they don’t, that’s business.

“That’s what happened in the Niger Delta; Nigeria did not spend money to explore oil. So, when you take our money, 30 per cent of the supposed profit of the NNPC, it is fraudulent conduit pipe to siphon Nigeria’s money for whatever purposes they have set out for themselves.”

The spokesman said the injustice in the country was one of the reasons the group has been demanding the restructuring of Nigeria.

“These are the reasons why PANDEF and other regional organisations are insisting on the restructuring of the Nigerian state. The structure of this country, the present constitution of Nigeria is fraud and very skewed against Southern Nigeria, not just the Niger Delta people, and we will continue to insist that Nigeria must be restructured.

“Let the federating units, states or whatever control the resources and give taxes to the federal or central government. We can’t continue in this fraudulent process, it is robbery of the Niger Delta people,” he said.

The 17 Southern governors in the country, had at their July meeting in Lagos, rejected the allocation of 30 per cent for the exploration of oil in the frontier basins. (Punch)

Posted 16/08/2021 9:04:57 PM


Share on facebook Yahoo mail icon Gmail icon


You may also like...
Keyamo kicks off campaign, says Buhari fit for...

Students threaten mass action over fuel price hike...

Afenifere to FG: Your plan to establish 109...

IPOB not responsible for most attacks in Ebonyi...

Gunmen murder Imo lawyer Darlington Odume

Insecurity: Gov. Wike reacts as gunmen attack police...

N20B Kogi salary loan diverted, EFCC moves for...

COVID-19: I didn’t dare govt, police over closure...

Igbo responsibilities have fallen on Kalu and myself...

Lagos: Properties worth millions of Naira destroyed as...

May 29: Army alleges plot to end democracy...

Herdsmen: IPOB, Oduduwa Volunteer Force form alliance, train...


Latest News 2023: Return secretariat to PDP, Atiku advises Umahi Fayemi’s Ex-SSG emerges Ekiti APC Governorship Candidate Man arrested for advertising fake eggs on social media Ikoyi Building Collapse: All victims died before rescue operations began – LASEMA NIPOST launches banking platform, e-debit card Randy man, 37, bags life imprisonment for raping 13-year-old girl sent on errand Mortuary for kidnapped victims uncovered in Rivers State Tension as soldier kills revenue agent at Onitsha bridgehead 2023: Okorocha writes Senate, declares for Presidency ENUGU 2023: Why Nwobodo, Nnamani, Onyia support Nkanu-East Money laundering: US court to sentence Hushpuppi on Valentine’s Day Okonkwo seeks government support for investors in Enugu State


Most Read Full Text of Governor Ifeanyi Ugwuanyi’s 2016 Budget Speech (265,829 views) Ebonyi bans embalming of corpses in homes (265,827 views) Ex-Heads of State will protect Jonathan from persecution —Kukah (265,827 views) FG sends new directive to banks, schools as Buhari extends lockdown by four weeks (265,827 views) I’ve no Coronavirus, govt wants to kill me – Anambra Index case (265,826 views) Ugwuanyi commends FG’s siting of ICT University in Enugu (265,825 views) Sickle cell support group seeks government intervention (265,825 views) Fleeing ex-DG Imo Broadcasting Corporation who stabbed wife to death arrested (265,825 views) ASUU strike: Senate intervention ends in deadlock (258,662 views) HUSHPUPPI: CRIMINALS HAVE NO TRIBE. THEY SHAME ALL OF US... (257,522 views) All you need to know about Peter Obi, PDP VP Candidate (199,520 views) DEMOCRACY DAY: President Muhammadu Buhari’s full speech (197,905 views)






There are no video entries posted yet.