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Proposed PIA amendment: HOSTCOM suggests areas for alteration
As the National Assembly is set to amend the Petroleum Industry Act (PIA),
the Host Communities Producing Oil and Gas (HOSTCOM) have suggested some areas in the Act to be altered in the interest of robust oil and.gas industry that has been the yearning of the federal government.
The host communities who claimed that they have been excluded in the current legal instruments when it was passed into law in 2021, called on President Muhammadu Buhari to send the PIA back to the National Assembly as an executive bill for amendment.
In the memorandum which was seen by CAPITAL POST on Thursday, and signed by the National President of HOSTCOM, Dr. Benjamin S. Tamaranebi lamented that the exclusion of host communities during the inauguration of the Steering Committee as well as the appointment of the various governing boards of NNPC LTD, the Nigerian Upstream Regulatory Commission and the Nigeria Midstream and Downstream Regulatory Authority was unfortunate to the much desired oil industry.
According to the memorandum, Chief Tamaranebi explained that the host communities were supposed to be first in hypothetical order in terms of appointments, hence, they were calling on the parliament to correct the anomaly.
“We recommend that section 11 subsection 2 be amended to read “The Board of the Commission shall consist of:-One non-executive chairman, two non-executive commissioners, the chief executive officer of the commission (in this Act referred to as “the Commission chief executive ”
“Also two other executive commissioners who are responsible for finance and accounts and exploration and acreage management and one representative of the Authority not below the rank of Director
Continuing he said one representative of the Ministry not below the rank of Director and one representative of the Ministry of Finance.
“We therefore recommend that section 28 subsection 2 be amended to read “the commission shall indemnify the commission chief executive, commissioners or any officer of the commission for any liability incurred as a result of willful misconduct or gross negligence.
He said section 240 subsection (2) should be amended to read
“Each proponent or operator, where applicable, shall make an annual financial contribution to the applicable host communities development trust fund of an amount equal to 3% of its annual operating expenditure of the proceeding financial year in the upstream petroleum operations,not less than 5% of the OPEX and CAPEX of the company or 5% of the maintenance/(construction) cost payable into the trust account annually from the midstream petroleum operations.
This he said should not be less than 5% of the actual annual (Opex and Capex) of the Operating Company’s preceding year expenditure be paid as contribution to the fund from the downstream petroleum operations affecting the host communities for which the applicable host communities development trust fund was established to ensure transparency, efficient legal framework, good governance, accountability and Host Communities sustainable development for a favorable working environment.
He recommended that section 104 (2) should be amended to read “money received under this section shall be paid to the Host Communities Sustainable Development Trust Fund” since section 104 subsection (4) has clearly stated that “money received from gas flare penalties by the Commission under this section, shall be for the purpose of environmental remediation and relief of the Host Communities of the settlor on which the penalties are levied.
“Section 257 should be amended as HOST Communities are not contractors to any company or responsible for any negligence for any contract but only will be responsible if the surveillance contract is given to the Host Communities.
He said they felt worried about Section 240(2) on how industry players carefully removed down stream and midstream from remittance, which is the major issue in spillages and soot.
“We recommend that Section 52 (7d) be amended to read “money received from gas flaring penalties by the Commission under section 104 of this Act shall be transferred to the Host Communities Sustainable Development Trust Fund for the purpose of environmental remediation and relief of the Host Communities of the settlor on which the penalties are levied:”
He recommended that section 51 subsection 2 be amended to read “the Authority shall indemnify the Authority chief executive, director or any officer of the Authority for any liability incurred as a result of willful misconduct or gross negligence.
He recommended that, “Section 52 (7d) be amended to read “money received from gas flaring penalties by the Commission under section 104 of this Act shall be transferred to the Host Communities Sustainable Development Trust Fund for the purpose of environmental remediation and relief of the Host Communities of the settlor on which the penalties are levied:”
They also recommended that section 52 subsection 8 be amended to read, “The Authority shall ensure the prompt payment of all such sums directly into the Host Communities Sustainable Development Trust Fund’s account.
“We recommend that section 59 Subsection (2) The Board of NNPC Limited shall be appointed by the President and composed of a non-executive chairman, the chief Executive of NNPC Limited, the Chief Financial Officer of NNPC Limited, a representative of the Ministry of Petroleum not below the rank of a director
“Also a representative of the Ministry of Finance, not below the rank of a director; and six non-executive members with at least 15 years post qualification cognate experience in petroleum or any other relevant industry with at least 15 years post-qualification experience.
The national president recommended that section 103 subsection (1) be amended to read as follows,
“Financial contribution for remediation to environmental damage must be in compliance with the clean development mechanism (CDM) ghg project development cycle criteria which shall be clearly stated out in the Project development methodology and demonstrated in the Project Design Document (PDD).
He said, Since the Host Communities are the direct recipients of the impact and negative effect of exploitation and exploratory activities, it would then be morally right that the environmental mitigation and remediation fund for environmental damage be transferred to the Host Communities Sustainable Development Trust Fund.
“We recommend that section 104 subsection (2) be amended to read “money received under this section shall be paid to the Host Communities Sustainable Development Trust Fund” since section 104 subsection (4) has clearly stated that “money received from gas flare penalties by the Commission under this section, shall be for the purpose of environmental remediation and relief of the Host Communities of the settlor on which the penalties are levied.
“We recommend that section 115. Compensation for acquisition of land be amended to read:
“A Permit shall be issued subject to compliance by the applicant with the provisions of the Land Use Act Cap L5 Laws of the Federation of Nigeria 2004 in respect of compensation for acquisition of land for midstream and downstream petroleum operations.
“The Governor of a State of which land is required for carrying out operations or activities shall issue a permit subject to a licence or permit from the regulatory Commission or Authority as the case may be pursuant to the Land Use Act in respect of the land and in accordance with existing state law.
“Or section 115 subsection 1 and 2 completely expunged.
“We recommend that Section 216 subsection 2 be amended to read ” the stakeholders to be consulted for any particular regulation shall be lessees, licensees, permit holders and the Host Communities that may be impacted by the regulations and such other persons that may be interested in the subject matter of the proposed regulation.
“We recommend that Section 216 subsection 5 be amended to read “Notwithstanding the provisions of subsection (1), the Commission or Authority may, in national interest and exigency of the situation, issue a regulation after conducting stakeholders consultation in accordance with subsection (3). Or be expunged.
The Rivers State chapter of the All Progressives Congress (APC) has declared that it has been vindicated by recent revelations from the state’s former Head of Service, Dr. George Nwaeke.
The Rivers APC Chairman, Chief Tony Okocha, stated this in a statement he personally signed and made available to journalists on Wednesday.
The former Head of Service, who recently resigned had alleged that the suspended Governor, Siminalayi Fubara, was directly responsible for the political crisis in the state and the bombing of the State House of Assembly.
In response, the Rivers State APC asserted that Nwaeke’s testimony aligns with the party’s long-held position, as frequently stated by Chief Okocha, that the suspended governor was the architect of the state’s political crisis, including masterminding the October 29, 2023, bombing of the State House of Assembly.
Chief Okocha further emphasized that Nwaeke’s account, given his high-ranking position in the state, cannot be dismissed as mere speculation.
He said attempts to discredit the former Head of Service will not deter him from exposing the alleged corruption and misconduct that the APC has repeatedly highlighted.
“What is most interesting to the APC in Rivers State as a responsible political party is that Dr. George Nwaeke’s revelations and testimonies of how suspended Governor Siminalayi Fubara and his squad bombed the Rivers State House of Assembly is an eye witness account.
“Again , it has clearly vindicated the APC in Rivers State as the only visible and viable opposition political party in the State, and has cemented the love for the party in the heart of well meaning Rivers people as the voice of the voiceless, and the hope for a better Rivers State.
“The revelations made by the former Head of Service in Rivers State has further positioned her as a political party with high level of integrity, and the hope of Rivers people for a viable alternative to produce the Governor of Rivers State in 2027.
“The verbal attacks staged against the resigned Head of Service will not deter him from exposing the corruption within Sim Fubara’s administration, which we have consistently highlighted as the opposition party. On this matter, the APC shall function as watchdogs”, the party stated.
Chief Tony Okocha expressed confidence that security agencies would thoroughly investigate the matter.
“The APC in Rivers State strongly believes that the relevant security agencies will be professional enough to get to the root of the matter and make their findings public”, he said.
A coalition of civil rights organizations, the Centre for Credible Leadership and Citizens Awareness (CCLCA), has called for an immediate and thorough investigation into the allegations leveled against suspended Rivers State Governor, Siminalayi Fubara, by Dr. George Nwaeke, the former Head of Service of the state.
During a press briefing in Abuja on Wednesday, Dr. Gabriel Nwambu, Director General of the CCLCA, urged the Nigerian Police Force (NPF), Department of State Services (DSS), and the Economic and Financial Crimes Commission (EFCC) to take swift action in probing the allegations. He emphasized that if proven true, these claims pose serious risks to governance and democracy.
The coalition, comprising 30 civil society organizations, stands in solidarity with Dr. Nwaeke, who has expressed willingness to provide evidence of alleged corruption and constitutional breaches involving Governor Fubara and his Chief of Staff, Mr. Edison.
“We collectively urge the relevant authorities to act swiftly and transparently. Addressing these allegations is critical to restoring public confidence in governance at both the state and national levels,” Dr. Nwambu stated.
He commended President Ahmed Bola Tinubu for his intervention in Rivers State, which led to the declaration of a state of emergency, a move he described as crucial for stabilizing the region.
Dr. Nwaeke’s accusations against Governor Fubara include:
Arson and Sabotage: Allegedly instructing his Chief of Staff to burn down the Rivers State House of Assembly to prevent impeachment proceedings, a violation of Section 14(2)(b) of the 1999 Constitution.
Corruption and Financial Misconduct: Claims of large sums of money being used for personal and illegal activities, contravening Section 15(5) of the Constitution.
Threats to Public Safety: Alleged plans to sabotage state infrastructure, potentially inciting public disorder, which falls under Section 1 of the Terrorism Prevention Act (2011).
Collusion with Militant Groups: Alleged meetings between the governor, his Chief of Staff, and militant leaders, posing a threat to national security and violating Section 43 of the Constitution.
Suppression of Labour Rights: Alleged attempts to bribe labour leaders to silence dissent, contravening Section 40 of the Constitution, which guarantees freedom of assembly.
The coalition has urged law enforcement agencies to ensure a thorough, transparent, and expedited investigation into these allegations.
Deputy Speaker of the House of Representatives, Rt. Hon. Benjamin Okezie Kalu has appointed Sam Ifeanyi Hart, Esq. as his new Chief of Staff (CoS).
Hart replaces Hon. Toby Okechukwu who was recently appointed Executive Director, Projects of the newly established South East Development Commission (SEDC).
Prior to his appointment, Hart served as Special Adviser to the Deputy Speaker on Public Affairs and has an extensive background in training and consultancy.
Hart also previously served as Director-General, Abia State Marketing and Quality Management Agency from 2019 to 2023 after occupying other appointive positions.
He was also a member of National Institute for Policy and Strategic Studies (NIPPS), Kuru where he attended the Senior Executive Course 45, serving as Course Secretary-General.
He has also served on the Boards of several corporate and non-governmental entities.
Hart brings a wealth of knowledge and experience to his new role, with a distinguished career spanning law, leadership, and public service.
A lifelong learner, he holds multiple academic qualifications, including a Master’s Degree in Environmental Law (LLM) and a Bachelor’s Degree in Law (LLB) from Abia State University.
The new Chief of Staff is also currently pursuing a Doctorate Degree in Law.
A seasoned professional, Hart has attended prestigious institutions, including the GOTNI Leadership Centre, National Institute for Policy and Strategic Studies (NIPPS), and the School of Politics, Policy and Governance (SPPG).
He is also a member of several professional bodies, including the Chartered Institute of Directors of Nigeria (M.IoD), Nigerian Institute of Chartered Arbitrators (ACIArb), and the Nigerian Bar Association (NBA).
As Chief of Staff, Hart will provide strategic guidance and support to the Deputy Speaker legislative activities, leveraging his expertise to drive policy initiatives and promote good governance.
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