PIB: FG To Hold Town Hall Meetings After Presidential Assent — Sylva

The Federal Government is to further engage oil-producing host
communities in the Niger Delta on issues regarding the 3 percent of
operational costs allocated to them in the recently passed
Petroleum Industry Bill (PIB).

Minister of State, Petroleum Resources, Chief Timipre Sylva
disclosed this in Abuja on Friday while playing host to Ijaw
elders, leaders, and critical stakeholders who visited him on the
passage of the PIB after 20 years. Sylva challenged host
communities on effective management of the funds.

He also lamented the situation where communities in the Bonny
Island cannot access funds paid to them by the Nigeria Liquefied
Natural Gas Company NLNG following court cases instituted by some
individuals. The Minister who said he has secured the commitment of
multinational oil firms to relocate their operational headquarters
to the Niger Delta urged the elders to continue to sensitize
communities on the need to secure public assets in their areas.

According to the minister, “We are planning, alongside the
Minister of Information to hold town hall meetings in the host
communities after the presidential assent to the PIB. We need to
have more stakeholders engagement in the 3 percent allocated to the
communities. People need to know that it is from production costs
and not from profit. The production cost is always higher than the
profits. “Today, I can tell you authoritatively that we are on the
last mile of the oil economy. Economies around the world are now
discussing renewable fuel.

“We must understand that very soon we might wake up and find out
that oil is not as valuable a commodity as we thought before. Coal
did not finish before the world moved away from coal. There is
still a lot of coal deposit in Enugu today but if you give some of
it to someone, he might not appreciate it because the world has
moved away from coal. We must support every effort to ensure that
the oil we have today is produced and sold so that we can get the
benefits.

“For the past 20 years we have been struggling to pass the PIB
and that introduces a lot of uncertainties in the horizon because
when you are in the process of amending your laws, investors would
hold on to see what the amendment will be. That was why for the
last 20 years, investments in the sector were on hold. Last year,
there was over $50bn investment in Africa and what came to Nigeria
was $3 billion because of the uncertainty in the sector. Our main
challenge is resource management. If we manage all the money coming
to the Niger Delta, NDDC, 13 percent derivation, 3 percent host
communities funds, and even the one from the amnesty program, we
won’t have some of the issues currently confronting us”, he
added.

Chief Timi Kay Ogoriba, leader of the 33-member delegation
commended the minister for the introduction of unprecedented
massive reforms in the petroleum industry especially the radical
expansion of the gas sector. The delegation lauded the minister for
working with the 9th National Assembly towards its eventual passage
of the Petroleum Industry Bill after about 20 years.

The Federal Government is to further engage oil-producing host
communities in the Niger Delta on issues regarding the 3 percent of
operational costs allocated to them in the recently passed
Petroleum Industry Bill (PIB).

Minister of State, Petroleum Resources, Chief Timipre Sylva
disclosed this in Abuja on Friday while playing host to Ijaw
elders, leaders, and critical stakeholders who visited him on the
passage of the PIB after 20 years. Sylva challenged host
communities on effective management of the funds.

He also lamented the situation where communities in the Bonny
Island cannot access funds paid to them by the Nigeria Liquefied
Natural Gas Company NLNG following court cases instituted by some
individuals. The Minister who said he has secured the commitment of
multinational oil firms to relocate their operational headquarters
to the Niger Delta urged the elders to continue to sensitize
communities on the need to secure public assets in their areas.

According to the minister, “We are planning, alongside the
Minister of Information to hold town hall meetings in the host
communities after the presidential assent to the PIB. We need to
have more stakeholders engagement in the 3 percent allocated to the
communities. People need to know that it is from production costs
and not from profit. The production cost is always higher than the
profits. “Today, I can tell you authoritatively that we are on the
last mile of the oil economy. Economies around the world are now
discussing renewable fuel.

“We must understand that very soon we might wake up and find out
that oil is not as valuable a commodity as we thought before. Coal
did not finish before the world moved away from coal. There is
still a lot of coal deposit in Enugu today but if you give some of
it to someone, he might not appreciate it because the world has
moved away from coal. We must support every effort to ensure that
the oil we have today is produced and sold so that we can get the
benefits.

“For the past 20 years we have been struggling to pass the PIB
and that introduces a lot of uncertainties in the horizon because
when you are in the process of amending your laws, investors would
hold on to see what the amendment will be. That was why for the
last 20 years, investments in the sector were on hold. Last year,
there was over $50bn investment in Africa and what came to Nigeria
was $3 billion because of the uncertainty in the sector. Our main
challenge is resource management. If we manage all the money coming
to the Niger Delta, NDDC, 13 percent derivation, 3 percent host
communities funds, and even the one from the amnesty program, we
won’t have some of the issues currently confronting us”, he
added.

Chief Timi Kay Ogoriba, leader of the 33-member delegation
commended the minister for the introduction of unprecedented
massive reforms in the petroleum industry especially the radical
expansion of the gas sector. The delegation lauded the minister for
working with the 9th National Assembly towards its eventual passage
of the Petroleum Industry Bill after about 20 years.