PIB: FG alledgedly diverted N500 billion paid for development of Niger Delta – Niger Delta leaders

The National Chairman of another faction of Host Communities of Nigeria Producing Oil and Gas Mike Emuh, has accused the Federal Government of diverting Over N500 billion that have been paid by the IOC and the NOC through the DPR to CBN.

He said the money was paid for the development of the host communities but diverted to the federation account which he said is an aberration.

He spoke on the second day of the Public Hearing on Petroleum Industry Bill (PIB) 2020, organised by Senate’s joint Committee on Petroleum Downstream, Upstream and Gas.

He also accused the Federal Government of violating the gas flare trust fund law which is an international law that says when gas is being flared in any community that 1000 standard cubical flared is paid to the host community as result of industrial pollution, corrosion, acidic rain and health hazard. He said that has not been done in Nigeria.

“We are having over 12 groups in the Niger Delta and some are duly registered by CAC and some are not registered. This is a public hearing so any community or group can show up.

“But basically, this is the umbrella body of the whole of the oil producing states in Nigeria.

He said they are also looking at the misuse of the 13 per cent derivation act as amended 1999 section 162 (2) that made 13 per cent derivation as the prerogative of the host community not of the state governors or local governments saying it is supposed to be between the presidency and the host community.

“So in our presentation today, we are saying that they should revisit the act that established the 13 per cent derivation and channel it directly to the host community.

So the PIB, gas flared money should be channeled directly to the host community.
He said pipeline surveillance contract should be given to the host community so that they can employ their children to guard over the pipeline.

“Industrialisation, modular refinery and gas plant licences should be given to the host community. Nobody in the whole Niger Delta that owns an oil bloc which is an error.

“There are individuals in this county that have two oil blocs. But the whole of the Niger Delta, no king, no traditional ruler, not even the Oba of Benin, that owns an oil bloc.

“They should give us an oil bloc. 95 per cent of the economy is being produced by the host community. At least let us be beneficiary of at least 1 per cent.

“On the PIB, we are saying 10 per cent equity was the executive bill that was signed by late Yar’Adua, it should not be less than 10 per cent. We are not taking 2.5 per cent, 5 per cent. 10 per cent equity should be in favour of the host community in the establishment of this law that will create hostcom commission.

“IOC are the six major oil companies: chevron, shell, total. This is the money they paid to DPR, DPR pays to CBN and CBN pays to federation account which is wrong it should end up with the host community account, not the federation account so there should be law guiding that issue.’