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Group seeks review of Nigeria’s petroleum industry law

A group, Connected Development (CODE) has called for a review of the Petroleum Industry Act (PIA).

Its Chief Executive, Hamza Lawal said the review would advance the development of the communities where oil companies operate.

He explained that the current Act gives enormous powers to the oil companies rather than the host communities.

He disclosed this in Abuja while briefing reporters on the outcome of the project it embarked on with support from OXFAM; ‘Power of Voices Project’.

Lawal explained that the project was targeted at interrogating some communities in the Niger Delta to know how resources are utilized and also know the level of the implementation of the PIA.

Section 257 (2) of the PIA stipulates that oil and gas companies should remit three per cent of their annual expenditure to affected host communities.

Lawal however noted that the provision in the Act gives powers to the oil companies to disburse and utilize the funds.

He said: “From our engagement with government regulators and also engagement with the trustees of the funds, we have seen that the oil companies are creating bottlenecks in disbursement and utilization and most of the communities are aggrieved.

“The PIA is a great tool but the gap is the Host Community Trust Fund. The oil companies are meant to remit monies into the trust fund when it is set up and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is meant to support the value chain, but we are saying that the oil companies should not have powers over the disbursement and utilization of the monies.

“Their role should be to support the set up and also pay a percentage as prescribed by the law. So, we are seeking review so that powers be taken away from the oil companies and given to the host communities.”

He warned unrest and chaos was imminent if the Act is not reviewed.

“If the review is not done, the host communities will take laws into their hands and we don’t want a repeat of senseless killings and barbaric act by young people who think that they have been marginalized and that they can take laws into their hands and in some cases destroy infrastructures in the region,” he said.

He also condemned the action of the oil companies, saying: “In some cases, after undertaking projects, the oil companies refuse to release it. This is making community members aggrieved and they are on the edge of being pushed to the wall. Why would the companies who are currently exploring our natural resources in the Niger Delta want to stop communities from enjoying the dividend that PIA has empowered them to enjoy.

He also said there was a need for the Niger Delta Development Commission (NDDC) and the anti-graft agencies to monitor projects ongoing in the region.

He said: “I think the NDDC should also be reviewed because there are so many abandoned projects carried out by it in the Niger Delta region. There are various funds going to the region but we are not seeing the impact of the money on the communities.

“Our anti-graft agency must also rise to the occasion because it seems there are no consequences and that is why projects are abandoned and monies siphoned by officials who are supposed to use the money to develop the region where we get over 80 percent of our revenue as a country,” he said.

Lawal, while also launching a civic manual for civic clubs established in 18 schools in six states of the country, noted that the club was targeted at building young ones who will ensure that the dividends of oil exploration are enjoyed.