The Federal Government has launched an elaborate move to woo northern Senators and members of the House of Representatives opposed to the Petroleum Industry Bill (PIB).
The northern members of the National Assembly and their governors however remained adamant in their opposition to the bill which they claim is skewed in favour of the oil producing states.
Their fear stems largely from the possibility that the bill may be used to jack up the statutory 13.5 per cent derivation for oil producing states to between 45 and 50 per cent.
They are bent on throwing out the provision for Host Community Fund which stipulates 10 per cent of the profit of oil companies for oil producing states and communities.
The northern lawmakers have the backing of the International Oil Companies (IOCs) who may pull out of new investments in the country on account of the bill.
Investigation by our correspondent showed that about three lobbying groups raised by the Ministry of Petroleum Resources and other oil-related parastatals have been reaching out to Senators and Representatives from the north.
It was gathered that the selling points of the group are that the bill would ensure more transparency in the oil sector; Nigerians can own equity in the new National Oil Company and the National Gas Company; mass employment; the nation would earn more revenue; and the management of the oil sector will have enhanced indigenous outlook than the present dominance by foreigners.
But northern Senators and Representatives have not bought the arguments of the lobbyists.
A high-ranking Senator, who spoke in confidence, said: “The PIB is a booby-trap for the north. We have all resolved to oppose the passage of the bill into law and we are at a comfortable advantage because we have the majority in the two chambers.
“Our main grouse borders on the establishment of Host Community Fund which we want removed from the bill because that will indirectly shoot up the derivation from 13.5 per cent to 45 to 50 per cent for oil producing states. We have commissioned a study and done our calculations.
“Going by what is computed in the PIB, oil states and communities will enjoy about 29.5 per cent derivation. But we know that there are other inherent advantages which cumulatively could lead to 45 to 50 per cent derivation for oil producing states.
“What has assisted us is that we have the backing of our colleagues from the South-West and some from the South-East. When Cocoa, groundnuts, palm oil and other commodity products were fetching revenue for the nation, nobody spoke of Host Community Fund.”
Another Senator said: “What is painful is that the present 13.5 per cent derivation being enjoyed by oil producing states was put in place by past northern Heads of State and Governments. So, no one can accuse the North of ganging up against South-South or oil states’ interest.
“What we want is a united Nigeria where all the Federating units will have equal stake. The padding of the PIB to guarantee more revenue for oil states should not have been when a South-South leader is in charge and when another South-South citizen is manning the Ministry of Petroleum Resources.
Another ranking Senator said: “I told the lobbyists that the bill will set bad precedent because it appears it is politically motivated than economic reasons.
“That is the way some of us from the north see it. We have not been convinced at all. That was why the Presiding Officer at the Wednesday session was tactical in managing the situation.”
A principal officer in the House of Representatives said: “We have referred the PIB to a committee but the truth is that those of us from the north would like the recommendation for Host Community Fund expunged because the derivation policy is there to protect their interest.
“If in future we see the need to increase the derivation percentage, we will do so without any backdoor approach.
“We have listened to some of the lobbyists but we will put the nation first and ensure justice.”
Another high-ranking member of the House said: “The engagement of a consultant has opened the eyes of Northern leaders, Northern Governors’ Forum, Senators and House members to the dangers in the PIB for the North.
“We are ready to sit down with the Executive, make our claims and find alternatives to our grievances.”
Another House member said: “Do you expect us to pass a bill which will leave the determination of royalties payable by oil companies to the discretion of the Minister f Petroleum Resources? We are sliding into a situation whereby a Minister will be more powerful than the President and Commander-In-Chief of the Armed Forces.
“We will rather opt for a functional system than pass a bill that will cause chaos in future.”
The northern governors, Senators and House members had rejected the PIB for containing some provisions which will short change the region.
The grouse of the north are contained in a document prepared for the Northern Governors Forum, Northern Senators Forum and Northern Caucus in the House of Representatives.
The document indicated that the PIB’s provisions could “lock the people of the region out” of ownership of oil and gas resources.
The document reads in part: “On top of the 13.5 per cent statutory derivation from the Federation Account, the mandatory Federal budgetary allocation to the Ministry of Niger Delta, the Niger Delta Development Commission (NDDC) levy of 3% of oil operations and the massive amount of Federal funds being spent on the Niger Delta Amnesty programme, the new PIB is adding 10% of the profit of al Oil and Gas companies to the Niger Delta States and Communities.
“Currently, without this new addition, four states (Akwa Ibom, Bayelsa, Delta and Rivers) earn more than the 19 northern states combined. One wonders what kind of federation we would end up with if this situation is escalated by the new PIB. In any case, what really is the constitutional standing of this particular provision in the Bill?
“These and many more other issues are in the Petroleum Industry Bill need very close scrutiny by the Northern Governors Forum. Without this exercise, it is very possible for the states in the region to be legally short-changed through the process of legislation despite having the majority membership in the two chambers of the National Assembly.”
On plans to divest equity in the proposed new National Oil Company and the National Gas Company, the northern leaders said there is no provision for safety net to protect the interest of the region.”
They said the PIB ought to protect the north’s right to invest in these two companies because of its low participation in the Nigerian Stock Exchange.
The document said: “The plan to divest equity in the new National Oil Company and the National Gas Company is not in itself an issue, the problem is to implement this provision of the law without any safeguards for equity and national spread.
“The communities and businesses in the northern states are not very active players on the Nigerian Stock Exchange. In this regard, simply off loading the equity of these national assets on the stock market could lock the people of the region out of ownership of these critical resources.
“The region must therefore insist on legislating guarantees for equity and national spread on whatever divestment plans there are for oil and gas assets.”
As at press time, it was learnt that the IOCs are uncomfortable with the PIB.
A highly-placed source said: “Some of the IOCs have concluded plans to divest from our oil sector if the bill is passed in its present form.”
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