"Quite frankly, I think as unprecedented as it is, it does not please everybody and that cannot be helped but let us remember the unprecedented reforms that have happened in the oil industry during our time, such as major gas reforms, the Petroleum Industry Bill [PIB], which has been completely revised, reformed and put into the hands of members of the National Assembly where it has languished for two years." : Mrs Diezani Alison-Madueke, Petroleum Minister - The Guardian, April 23, 2015.
That the Honorable Minister of
Petroleum Resources is talking now is somehow unexpected given the fact that
the Minister and NNPC once filed a motion before an Abuja Federal High court,
praying the court through their lawyers to void two 'separate summons issued by
the Public Accounts Committee of the House of Representative, demanding their
appearance and explanations regarding allegations of financial recklessness' -
a motion that was subsequently granted by the presiding Judge on technical
ground (procedural lapses). That's by the way.
With specific reference to the
Petroleum Industry Bill (PIB) and the contentious Host Community Funds clause,
I would like to know the number of instances when you, acting as the Minister of
Petroleum Resources had audience with the local press and interested community leaders with a view to eliciting public awareness
about the nature of the adverse forces that your office contended with while trying
to pass the PIB into law. I would also like to address the same question to the President in light of the fact that he is from the Niger Delta, and especially for the fact that petroleum resources is
the main stay of our economy. There is nothing on record to show that the President was aware of the resistance from the north or conversant with the content of the contentious clause - the Host Community Funds (HCF), which 'seeks to grant a 10 per sent equity advantage to oil-bearing communities from the net profit of oil companies operating in the areas.'
The issue here is not whether the
Minister did or didn't perform in her quest to reforming the energy industry,
but that like the President, the resistance from the northern Senators was poorly managed. The press is not the enemy. The enemies are the timid sycophants masquerading as Special
Advisers who are guilty of persecution complex. They see enemies coming after their boss from different angles. Whereas the most appropriate approach is consistent coaching of the "ogas" focused on spirited and cordial engagements with
the media and the general public.
A President Obama, facing similar
Congressional gerrymandering as was the case with PIB in the Nigerian Senate,
will go on the offensive - hitting the road, meeting the press and talking to
the American people about the obstructions from Congress and vested interests
(cabals) hampering actions on the Bill. From all indications, the Obama style
is, without any doubt, alien to President Jonathan and his Advisers.
The Facts of the Matter:
My concern here is not politically
influenced. It is simply economic and environmental related. I am from Edo
State, one of the oil producing states in Nigeria. Be that as it may, I do not
support having the Ministry of Niger Delta, the Host Community Funds and the
NDDC, all catering to the same region, and for the same purpose. Such a
development is bound to create the type of resistance - reasonable or not -
coming from the northern region.
Its all about performance. If
NDDC perform as mandated, there would not have been unrest in the Niger
Delta, and the need to have a Ministry of Niger Delta would not have arisen.
So, we must point out the major ground for rejection by northerners, and why
the Bill is "languishing in the National Assembly." No doubt, there
were orchestrated maneuvering by global energy concerns to impede or kill the
PIB as written as the Minister rightly stated in her comments. But the major
obstacle to the Bill came from the Northern Senators acting in conformity with
the dictates of the vocal northern political elite over the Host Community
Funds (HCF).
Some prominent public affairs
commentators of northern origin were not comfortable with the HCF and they made
their grievances known to the general public. Surprisingly, there was no
rebuttal from the President, his Energy Adviser or the Minister to set the
record straight. Knowing very well the influence of northern mavericks in our
political system, I knew exactly that northern members of the National Assembly
will not vote or act contrary to the voices and dictates of these vocal
commentators. We did respond though in our little way; praying and hoping that
the Presidency or the Advisers to the Minister stumble upon our piece.
About two years ago, we did
suggest on this Blog in one of our essays, which also appeared on the website
of the Nigerian Village Square that the Federal Government should either
eliminate the Ministry of Niger Delta, or merge it with NDDC. We also suggested
that the Host Community Funds be renamed as Land Reclamation Funds, and should
be specifically designed as a future funds. And in the same piece, we debunked
line by line and point by point all the grounds for rejection of PIB canvassed
by Mr. Anthony Sanni and Governor Aliyu. See "The Petroleum Industry Bill
(PIB): Balancing Host Community Fund with Perverted Indignation - The Way
Forward, January 8, 2014. Sadly, as it is always the case with the Jonathan
Presidency no one was audacious enough or Obama enough to see reason in our
talking points and run with it.
In hindsight, one would have
thought that the fact that the Host Community Funds is funded exclusively from
the net profit of companies operating in the region would have made it easier
for the Minister or the President to make a compelling case before the general
public for the smooth passing of the PIB. We were wrong. As always the case,
the more politically sophisticated northern power clique won in the
misinformation and obstruction war.
The Blame Game:
In my usual commonsense
judgement, I do believe, though I stand to be corrected, that the President and
his Advisers as well as Governors from the oil producing states didn't really
have a good understanding of what PIB entails, especially the contentious
provision - the Host Community Funds. Governor Babangida Aliyu of Niger State,
at the introduction of the Bill said, 'we have little or no knowledge about the
PIB or the Host Community Funds provision. Therefore, we are going to seek the
assistance of expert consultants in the industry to advise us on how to
proceed. And until we do that, we won't be able to tell our Senators on how to
proceed in the deliberations regarding the passing of PIB.' And that was exactly
what they did. Since that profound declaration from the Governor two years ago,
PIB has been languishing in obscurity somewhere in the Nigerian National
Assembly. Did we hear similar pronouncement from the President or Governors
from the oil producing state? No. That is a major issue that those interested
in unraveling the myth known as the Nigerian project must first overcome - the
naivety of southern political leaders in verbal war.
That brazen display of ignorance
is not excusable, because the President is expected to know what he doesn't
know. In addition, he is expected to know who to hire to do he cannot do. And
he is expected to have on his team, a recruiter whose responsibility it is to
help him search for and hire experts or consultants in certain fields to assist
him when he is confronted with difficult challenges.
That's where President Jonathan
has been so wanting in the course of his accidental journey as the President of
Nigeria. As a leader, you don't do well with sycophants surrounding you. The
Governors from the oil producing states are as guilty as the President on the
show of shame that encapsulates the passing of the Petroleum Industry Bill.
They derive pleasure spending the oil money and populating lucrative energy
related positions in their governments with friends and cronies, without
stopping to ponder over the impacts of environmental and ecological decay in
the region. It is not too late to start all over again.
Moving Forward:
The NDDC was established to cater to the interests of the communities in the Niger Delta, but it is of public knowledge that the agency has been an avenue for enriching the pockets of politically connected individuals over the years. Nevertheless, I strongly suggest its retention, but with drastic overhaul, with a viewing to ensuring accountability and effectiveness. In addition, we have to redefine its essence and objectives along with those of the Ministry of Niger Delta in order to expedite integration. Federal Government should embark on a radical restructuring of the agency, eradicate the loopholes in the contracting process, undertake thorough auditing of completed projects as well as ongoing projects - how much has been disbursed, pending disbursements, and mode of disbursement.
The NDDC was established to cater to the interests of the communities in the Niger Delta, but it is of public knowledge that the agency has been an avenue for enriching the pockets of politically connected individuals over the years. Nevertheless, I strongly suggest its retention, but with drastic overhaul, with a viewing to ensuring accountability and effectiveness. In addition, we have to redefine its essence and objectives along with those of the Ministry of Niger Delta in order to expedite integration. Federal Government should embark on a radical restructuring of the agency, eradicate the loopholes in the contracting process, undertake thorough auditing of completed projects as well as ongoing projects - how much has been disbursed, pending disbursements, and mode of disbursement.
Before I proceed further, I would like to call on the stakeholders in the oil industry, the uninformed political leaders from the oil producing states, as well as the influential public affairs commentators and political leaders from the northern region who are fighting to kill the entire Bill as well as those arguing against the retention of the Host Community Fund in the Bill to stop and reflect on what a future without crude oil holds for Niger Delta. And to once again, stop and reflect on the interests of the unborn generations from that region who will, as a matter of fact, have no other land to call their own, but a savagely contaminated waste land.
As a compromise and moving forward, I would rather we eliminate the Ministry of Niger Delta, than removing the Host Community Funds from the Bill. I would like to remind the adversaries of HCF that it is not a fund for the moment, but something for the future - an emergency or a reserved fund in the event of unforeseen catastrophic occurrences as was the case at the Bonga Oil Field and the Gulf Coast of Mexico the United States of America few years ago. A present day energy or natural resources regime without a provision for the host community or a land reclamation funds is not sustainable. We should not forget that in the ongoing debate. That the President, the Minister of Petroleum as well as the Governors from the Oil Producing States were not able to make such commonsense arguments is very unfortunate.
Again, the funding is not from the Nigerian Government, but from companies engaged in exploratory activities in the region. Is that a difficult argument to make? Again, see "The Petroleum Industry Bill (PIB): Balancing Host Community Fund with Perverted Indignation - The Way Forward, January 8, 2014.
Conclusion:
Conclusion:
In the Spring of 2011, I had an offer to attend the Minister's
meeting before the oil and gas industry stakeholders in Houston, Texas, as part of her global tour to sell the PIB to the international community, but I
declined the offer. When the Professor asked to know my reason, given my
interest in the industry and my intended specialization, I told him the trip by
the Minister is an exercise in futility. The Minister cannot sell a Bill to the
outside world, a Bill that the domestic market and stakeholders considered
politically motivated. My position then was that until the PIB is acceptable to
Nigerians at home, it is a no Bill. The Minister and her entourage came back to
Houston again about two years later for the same purpose. Today, the Bill is
almost forgotten. I am right; it was an excise in futility. I know that because
the President and Governors from the oil producing states do not know how to
handle with their fellow law makers from the northern region. Again, I am not
trying to be sentimental here or playing up some ethnic card; truth is,
southern political leaders are not as savvy or partisan as their colleagues
from the north on most national issues. You don't sell a bill like the PIB with
kid gloves. It’s all about iron hands, with a diplomatic touch and noise.
Period. All the northern senators, acting on the instructions from Governor
Aliyu and their expert consultants, united as one indivisible entity to kill
the PIB. The matter was made worst, when, Dr Junaid Mohammed, immediately after the conclusion of deliberations at the National
Conference, lampooned
the Minister of Petroleum Resources, mocking her for not being able to take the
Bill through the obstructions created by his northern senators in the Senate.
And that is sad. The usual argument is that Dr. Junaid Mohammed and those like
him do not speak for the people of the Northern region. Well said. But after
all said and done, their viewpoints always prevail. The 1999 Federal
Constitution, creation of States, creation of local government councils,
educational funding; a Junaid Mohammed had the final say. And that is the
unsolved Nigerian question. Passing the PIB, with the Host Funds intact is a good
start to unraveling the mystery that encapsulates the Nigerian project and preventing it from self discovery. Any contrary proposition will spell doom in the region, for the industry and the Nigeria economy.