Proposed PIB 2020 Model Will Trigger Tensions – Oil Communities Warn

Following a Two day public hearing by the Nigeria’s House of Representatives, Oil communities in Gbaramatu and Egbema Kingdoms, Delta State, have rejected the recommended governance model under the Petroleum Industry Bill, PIB, 2020 for host communities’ development where oil companies would turn into overlords over oil producing communities, warning it would generate unnecessary anxieties in Niger Delta.

The communities under the Egbema and Gbaramatu Communities Development Foundation, EGCDF, stated this in a memorandum to the Joint Committee on Petroleum Downstream Sector, Petroleum Upstream and Gas on PIB 2020 by the chairman, Jude Ukori.

”Furthermore, the oil companies would take over and determine the leadership structure of their host communities, including appointing people from outside the communities to manage host community affairs. “This is totally wrong, obnoxious and should be rejected by members of the House of Representatives.

Day 2 of the public hearing started with the representative of the Rivers State Government. The second set of presentations was given by the Host Community Association: as the oil community listed the following;

• Host communities as a critical stakeholder should be granted a 10% equity position in all licenses – 5% from the government and 5% from investors;
• Gas flaring fees and penalties should be transferred to the host communities.
• The Bill should ensure that there is host community participation in environmental issues;
• Ensure that the principles of sustainable development is enshrined in the Bill;
• Establish a national body called Oil and Gas Producing Development Commission, which should be replicated at the States and Local Government levels;
• 25% of Royalties from Upstream production should go to the Host Communities;

Oil communities further concluded that these provisions of the bill (existing government policy and the single regulator model would not do the Nigerian oil and gas industry any good other than create needless and avoidable agitations in the oil producing communities.