This is not a long essay. I am reproducing the contentious sections from the original version of the PIB that created the gridlock, which marred the passage of the Bill into law at the instance of Northern Political Leaders. I will quote the section and I will reproduce what they said verbatim, the date, and the names of the Newspapers.
The PIB Section116, 117, and 118.
Section 116, Section 117, and Section 118 of the Petroleum Industry Bill covering the Host Community Fund (the PHC Fund):
116. Establishment of the Petroleum Host Community Fund
There is established a fund to be known as the Petroleum Host Communities Fund (in this Act referred to as ‘the PHC Fund’).
117. Purpose of the PHC Fund
The PHC Fund shall be utilized for the development of the economic and social infrastructure of the communities within the petroleum-producing area.
118. Beneficial entitlements to the communities
(1) Every upstream petroleum producing company shall remit every month ten per cent of its net profit as follows -.
(a) for-profit derived from upstream petroleum operations in onshore areas and in the offshore and shallow water areas, all of such remittance shall be made directly into the PHC Fund; and
(b) For-profit derived from upstream petroleum operations in deep-water areas, all of the remittances directly into the Fund for the benefit of the petroleum-producing littoral States.
(2) For the purpose of this section ‘net profit’ means the adjusted profit less royalty, allowable deductions, and allowances, less Nigerian Hydrocarbon Tax less Companies Income Tax.
(5) Where an act of vandalism, sabotage, or other civil unrest occurs that causes damage to any petroleum facilities within a host community, the cost of repair of such facility shall be paid from PHC Fund entitlement unless it is established that no member of the community is responsible.
Chairman of the Northern States Governors Forum, Niger State Governor Babangida Aliyu
“This section will make several billions of Naira available for the development of the Niger Delta, in addition to the funds provided to the Niger Delta Development Commission (NDDC) and the Ministry of Niger Delta. You can see that the country is finished. That bill is meant to take care of the people of the Niger Delta alone. We won’t support it."
“We need to understand how to approach our members in the national and state assemblies. When issues like that come up, we need to discuss it so that the interest of our people who elected us will be protected,” he said.
"Our investigations reveal that one of the sore points for Northerners is the granting of more powers to the Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, which is recommended in the proposed bill. If passed as it is, she will also become the chairman of the boards of plum parastatals in the Ministry, as well as the boards of the Petroleum Technology Development Fund, the National Petroleum Assets Management Corporation, and the Petroleum Equalisation Fund (PEF), over which she will exercise enormous powers to scrap, whenever she likes."
Chief Anthony Sani of the Arewa Consultative Forum. Sunday Punch of July 28, 2013.
“I think those clamouring for such funds must be reminded that we cannot claim one country and live as if we are on different continents. The concept of nationhood presupposes bringing people together to enable them to live up to their synergy for the common good. And that is why the reduction of gaps in development and income is not only good politics but good economics as well.” - Sunday Punch of July 28, 2013.
Chief Anthony Sani of the Arewa Consultative Forum. Sunday Punch of July 28, 2013.
“I think those clamouring for such funds must be reminded that we cannot claim one country and live as if we are on different continents. The concept of nationhood presupposes bringing people together to enable them to live up to their synergy for the common good. And that is why the reduction of gaps in development and income is not only good politics but good economics as well.” - Sunday Punch of July 28, 2013.
Vanguard April 24, 2013. Govs Yero and Kwankwaso reject PIB
Kwankwaso told members of the Adhoc Committee on Petroleum Industry Bill, North-West zonal public hearing held in Kaduna, that the people of Kano State opposed the bill in its totality.
Said Kwankwaso: “The decision that we kick against the bill came after due consultation with stakeholders and the ordinary citizens of Kano State. Northern legislators must not be bought over like during the case of the offshore/onshore debate in 2002. The people of Kano State will not be deceived into endorsing the Petroleum Industry Bill. The South-South region has a Federal Ministry; it has13 per cent derivation; it has an amnesty programme as well as Niger Delta Development Commission, NDDC, against other parts of the country.”
"On his part, Governor Yero who was represented by Permanent Secretary, Kaduna State Ministry of Justice Hajia Hauwa Dalhatu said: “There is also in existence Niger Delta Development Commission and Ministry of Niger Delta, in addition to the autonomous amnesty programme. Creating a host communities fund, therefore, will not only be tantamount to creating a fourth tier of government but also making provisions that will further alienate other parts of the country economically. The term host communities as used in the bill is nebulous."
Governor Rotimi Amaechi was the Governor of River State and the Chairman of the Nigeria Governors Forum at the time. And the irrepressible and multivocal Comrade Adam Oshiomhole was the Governor of Edo State. All the Niger Delta or South-South Governors were at the meeting of the Governors when the decision was taken that all of them should exert pressure on the Legislators to expedite the process of the passage of the Bill into Law.
Governor Babangida Aliyu was the Chairman of the Northern Governors Forum at the time. When he got home from the meeting, he did a summersault and declared that the Northern Governors were suspending action on the passage of the Bill and had communicated such to their legislators pending their consultation with experts in the industry. And Governor Yero of Kaduna State was in alignment with him.
No rebuttal came from Governor Adam Oshiomhole, Mimiko, Imoke, Akpabio, or Rotimi Amaechi. That was the beginning of the end of the passage of the PIB into law. Between 2013 and now, there have been numerous hearings, rehearings, and series of modifications of the Bill, but what has not been modified is the opinion of the powerful stakeholders of the North who do not want another source of Funding for the Niger Delta.
Today, Godswill Akpabio is the Minister of the Niger Delta, he is a Lawyer, and he was the Governor of Akwa Ibom State when his colleagues from the North frustrated the passage of the Bill into Law. Ask him right now to give you a breakdown of what's wrong with the PIB and why it is yet to be passed into law, and I can assure you that he won't be able to tell you anything. And it is the same story today, with all the Governors of the Niger Delta or South-South. I do not know if it is ignorant, or they don't read newspapers, or they simply do not want to be on the opposite side of the views of their Northern colleagues. Now you know why similar pictures from the Niger Delta may never cease to intimidate your sight and why the Ogoni-Clean-up exercise sponsored by the UN is dead and no one is talking.
Finally, I would like to conclude this piece by reproducing my views on the matter following the publication of the Sahara Reporters story of August 27, 2012. Another version of this view is available on Sahara Reporters.
The term "Petroleum Host Community Fund" is a semantic error. I said so long ago. The drafter of the Bill should have categorized that Section as either "Land/Water Reclamation Fund” or “Decommissioning Fund” as the case may be. Such a Fund is a core component of the emerging global trends - an international framework - for the sustainable development of natural resources. It is about the future and the unknown. Given what happened in the Gulf of Mexico, the USA, and the Bonga Oil Spillage in the Nigerian Niger Delta recently, a "Host Community Fund" or “Land/Water Reclamation Fund” or “Decommissioning Fund” is a welcome development. The accompanied environmental devastation and its impacts on human and natural resources in and around the areas make the inclusion of such Fund in PIB morally and economically imperative."
"Most importantly, as always the case in every jurisdiction, this Fund is not a development fund; the specified amount is normally paid into a designated account or a consolidated fund account as the case may be, specifically for unforeseen catastrophic occurrences connected with exploration activities. Also, the fund is required to transplant the land and the surrounding water or river to the natural state that they were before oil exploration - that is at the end of drilling or mining activities as the case may be. So, opposition to this fund within the PIB is without merit and should be rejected by every Nigerian."
"Finally, as a Nigerian and as a professional in the energy industry, I must caution; we should not gamble with that section of the Bill. Without it, the bill is worthless. If members of the National Assembly are willing to abdicate their constitutionally recognized legislative responsibilities due to pressure from a section of the national governors, then we might as well jettison the concept of the Presidential system of government or eliminate the Legislative branch entirely. In that case, the Governors and the President would be able to enact laws and implement or execute them at the same time - the military style. I sincerely hope that is not where the Northern Governors are taking the country."
"On a lighter note, there was this popular saying when I was growing up: “Soldier go, Soldier, come” - the position of Energy Minister is not permanent and it is not hereditary. So why are we digressing on the power wielded or likely to be wielded by the incumbent as if Mrs Diezani Alison-Madueke is going to remain there permanently? It is like Republicans fighting relentlessly to dilute the power and prestige of the Presidency because a black guy is at the Oval Office presently. It could be you the next day. We should focus on the merit of the law, if at all, without regard to the power or influence of Mrs. Diezani Alison-Madueke."
MY COMMENT TODAY, MARCH 02, 2021.
Who is the Minister of Petroleum Resources today? President Buhari, a Northerner.