From Victor Osula, Abuja
President of the Senate, Ahmed Lawan
After much lobby by stakeholders, campaign against by oil companies and controversy over its benefit to host communities and the oil and gas sector in the country, the Senate on Thursday passed the Petroleum Industry Bill and approved 3 per cent for the host communities.
The Executive bill, which sought to reform the oil and gas sector and ensure its governance met with best global standards was introduced in 2000 and had since then suffered a lot of setbacks.
Achieving that approval for host communities was a major feat that almost toppled the passage of the bill itself as Senators from the Southsouth insisted on the original 5 per cent for the host communities until President of the Senate, Ahmed Lawan appealed for reason and unison returned to the house
The PIB passed third reading after Mohammed Sabo, Chairman of the Joint Committee Petroleum (upstream and downstream) and Gas, presented a report and its clauses were put to voice vote.
While presenting the report on Thursday, Sabo said the legislation is aimed at “promoting transparency, good governance and accountability in the oil and gas sector.”
The chairman said the committee recommended that 30 percent of Nigeria National Petroleum Corporation (NNPC) profit from oil and gas should be used to fund exploration of frontier basins.
“The various obsolete laws currently in operation in the country have been updated and consolidated in this chapter to meet global competitiveness and best practices.
A total of 355 amendments were recommended to this chapter while others were retained”, he said
The Senate had before then, held a closed session with the Minister of State for Petroleum, Timipre Sylva and the Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari.
Senate President Ahmad Lawan congratulated the lawmakers and said the Ninth National Assembly has achieved one of its fundamental legislative agenda.
“The demons (of PIB) have been defeated in this Chamber. We have passed the bill,” he said.
