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New PIB: Oil Firms Get Powers Over Host Communities’ Mgt
The new Petroleum Industry Bill (PIB) is seeking to give enormous powers to oil and gas firms operating in the country in the setting up of the proposed host communities development trust, appoint key members of the trust, determine its membership and criteria for their appointment.
In the bill currently before the National Assembly, the oil and gas firms are also to be empowered to suspend or remove members of the Board of Trustees to be set up for the host communities development trust, determine procedures for their meetings and provide regulations guiding their finances, among others.
According to the bill, the objectives of the host communities’ development trust included to finance and execute projects for the benefit and sustainable development of the host communities; undertake infrastructural development of the host communities within the scope of funds available to the Board of Trustees for such purposes; and facilitate economic empowerment opportunities in the host communities among others.
The PIB also requires that a fund, called the ‘host community development trust fund’, be set up, where the settler, also called the oil and gas firm, would contribute annually, an amount equal to 2.5 per cent of its actual operating expenditure in the immediately preceding calendar year in respect of all petroleum operations affecting the host communities for which the applicable host community development trust was established.
The new PIB is seeking to empower oil and gas firms, also called ‘settlers’ in the bill, to incorporate the trust for the benefit of the host communities for which the settler is responsible and also appoint and authorise a body trustees, to be called the ‘Board of Trustees’.
The Board of Trustees, according to the PIB, shall apply to be registered by the Corporate Affairs Commission as a corporate body under the Companies and Allied Matters Act, while its constitution shall contain provisions requiring the settler to determine the Board’s membership and the criteria for their appointment.
However, it added that the membership of the Board of Trustees of the host communities’ development trust shall be subject to the approval of the Nigerian Upstream Regulatory Commission or the Nigerian Midstream and Downstream Petroleum Regulatory Authority, as the case may be.
“The settler shall, in the determination of membership of the Board of Trustees, include persons of high integrity and professional standing, who may not necessarily come from any of the host communities,” the bill said.
The bill further stipulates that the settler shall determine the selection process, procedure for meeting, financial regulations and administrative procedures of the Board of Trustees; the remuneration, discipline, qualification, disqualification, suspension and removal of members of the Board of Trustees; and other matters other than those relating to the operation and activities of the Board of Trustees.
However, it noted that the Commission or the Authority, as the case may be, shall make regulations on the administration, guide and safeguard the utilisation of the trust fund; and have the oversight responsibility for ensuring that the projects proposed by the board of trustees are implemented.
It said: “Each member of the Board of Trustees shall serve a term of four years in the first instance and may be reappointed for another term of four years and no more. The Board of Trustees shall have a secretary, who shall be appointed by the settler to keep the books of the Board.”
Highlighting the duties and functions of the Board of Trustees, the PIB is also proposing that the Board of Trustees shall be responsible for the general management of the host communities’ development trust.
It stated that the Board of Trustees shall be responsible for: “determining the criteria, process and proportion of the host communities’ development trust fund to be allotted to specific development programs; approving the projects for which the host communities development trust fund shall be utilised.
“Providing general oversight of the projects for which the host communities development trust fund shall be utilised; approving the appointment of fund managers for purposes of managing the reserve fund; set up the management committee of the host communities development trust and appoint its members; and determining the allocation of funds to host communities based on the matrix provided by the settler.”
President Bola Tinubu has approved the nomination of four new members to the Governing Council of the Nigerian Content Development and Monitoring Board (NCDMB).
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, in a statement yesterday, said the appointment is to fill existing vacancies and strengthen the board’s capacity.
The statement said the approved nominees are Mr. Olusegun Omosehin of the National Insurance Commission and Engr. Wole Ogunsanya of the Petroleum Technology Association of Nigeria.
Tinubu also endorsed the nomination of Sam Onyechi, who represents the Nigerian Content Consultative Forum and Barrister Owei Oyanbo from the Ministry of Petroleum Resources.
The President encouraged the new members to leverage their expertise and dedication to enhance local content development within Nigeria’s oil and gas industry.
It added, “The nominations arose from the exit of previous institutional representatives from the Governing Council.
“The NCDMB Governing Council, established under Section 69 of the Nigerian Oil and Gas Industry Content Development Act, 2010, comprises representatives from key institutions.
“These include the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian National Petroleum Company Limited, the Petroleum Technology Association of Nigeria, the Council for the Regulation of Engineering in Nigeria, the Nigerian Content Consultative Forum, and the National Insurance Commission.”
The Niger Delta Development Commission (NDDC) has announced plans to construct additional hostels, rehabilitate roads, and enhance power supply in the University of Port Harcourt (UNIPORT).
NDDC’s Managing Director, Dr Samuel Ogbuku, disclosed this during a visit to the commission’s headquarters in Port Harcourt, yesterday by a delegation from the UNIPORT’s Governing Council.
Ogbuku stated that the NDDC had committed to upgrading facilities at UNIPORT as part of efforts to foster partnership with educational institutions across the Niger Delta.
According to him, the implementation of additional projects at the university forms part of a broader strategy to improve education standards in the region.
“Aside from the construction of new hostel blocks and installation of a 300 KVA solar inverter system, the NDDC will also facilitate more projects in the university.
“The commission will also deploy its engineers to assess the condition of UNIPORT’s roads and hostels for potential rehabilitation,” he said.
Ogbuku noted that upon completion, the projects would add to various initiatives previously undertaken by the commission at the university.
“These and other projects reflect our commitment to actualising President Bola Tinubu’s Renewed Hope Agenda in the Niger Delta region,” he added.
He reaffirmed the NDDC’s dedication to fostering development and strengthening partnerships across the region.
Earlier, Sen. Mao Ohuanbunwa, Chairman of UNIPORT’s Governing Council, who led the delegation commended the current leadership of the NDDC for its achievements in accelerating development in the Niger Delta.
He highlighted the university’s infrastructural challenges, noting that it lacked adequate facilities to accommodate its growing student population, and appealed for the NDDC’s support in addressing the shortfall.
“Currently, UNIPORT has a total student population of about 50,000, while its hostel accommodation capacity can only cater for 5,000 students.
“We therefore urge the NDDC to assist in the construction of additional hostels, improve transportation facilities, and facilitate the acquisition of gas turbines to enhance power supply for our students,” Ohuanbunwa pleaded.
The Vice Chancellor of UNIPORT, Prof. Owunari Georgewill, commended NDDC for its impactful projects across the Niger Delta and extended an invitation to the commission to participate in the institution’s forthcoming 50th anniversary celebrations.
The Senate has rejected a motion to rename the Independent National Electoral Commission (INEC) headquarters after the former chairman of the defunct National Electoral Commission, late Prof Humphrey Nwosu.
Nwosu presided over the June 12, 1993, presidential election, which was truncated by the former military President, General Ibrahim Babangida (rtd).
The election which was won by the late business mogul, Chief MKO Abiola, was adjudged to be the freest and fairest in the electoral history of Nigeria.
The motion to rename INEC after Nwosu was re-sponsored by Senator Enyinnaya Abaribe yesterday after lawmakers threw it out last Wednesday.
Abaribe called for posthumous national honours to be conferred on Nwosu in recognition of his role in Nigeria’s democratic evolution.
However, the proposal sparked a heated debate once again, with lawmakers deeply divided over Nwosu’s legacy.
Senator Osita Ngwu acknowledged that Nwosu operated under a military regime, which restricted his ability to announce the results.
He argued that “there was no way he would have announced the results with a gun to his head. That doesn’t change the fact that some of us see him as a hero.”
Senator Austin Akobundu, however, described it as most uncharitable for lawmakers to dismiss Nwosu’s contributions, insisting that he deserved a place in Nigeria’s hall of honour.
On the other hand, several senators like Senator Jimoh Ibrahim dismissed the idea outright, questioning why the Senate should honour someone who failed to announce the results insisting that “nothing should be named after him”.
Senator Cyril Fasuyi argued that history does not reward efforts, but only results.
“As long as he did not announce the result, whether under duress or not, I am against naming INEC headquarters after him,” he submitted.
Also, Senator Sunday Karimi criticised Nwosu for lacking the courage to speak out, while Senator Afolabi Salisu warned that immortalising him would undermine the memory of MKO Abiola, the widely accepted winner of the June 12, 1993, annulled election.
“Any attempt to do anything beyond a one-minute silence is to rubbish Abiola’s legacy,” he tendered.
After intense deliberation, most senators rejected the motion through a voice vote.
They, however, agreed to honour him with a one-minute silence and extend condolences to his family, effectively dismissing the other prayers to immortalise Nwosu.