Politics
Reps Okay Bill To Plug Revenue Leakages In Oil Sector
The House of Representatives, last Wednesday, passed a bill seeking to help plug leakages in government’s streams of income in the oil sector for second reading.
This followed a motion by the Deputy Majority Leader, Ahmed Wase, at plenary, presided over by Speaker Yakubu Dogara in Abuja.
Moving the motion, Wase (APC-Plateau) noted that as a result of lack of amendment of the Act, government has lost 21 billion dollars since 2008 when its review was due.
“Government loses about 8 million dollars daily as a result of lack of review,” he said.
According to him, a Bill for an Act to amend the Deep Offshore and Inland Basin Production Sharing Contracts Act, 1999, will help to provide more efficient methods of computing accruable revenue of government.
“It will improve the revenue of the government of the federation.
“Such additional revenue can adequately fund part of our budget deficit, boost the economy and improve living conditions of Nigerians.
“It will improve the petroleum industry governance,” he said.
According to the lawmaker, the bill seeks to effect an amendment in the Principal Act (Deep Offshore and Inland Basin Production Sharing Contracts Act, 1999) in order to plug leakages in government revenue streams and ensure the Federal Government maximises sufficient royalties from Production Sharing Contracts (PSC) between NNPC and International Oil Companies (IOCs).
“PSC was widely introduced in 1993 to address some of the issues faced by the Joint Operating Agreement (JOA) between the NNPC and IOCs and also to provide a suitable agreement structure for encouraging foreign investment in offshore acreage.
“Under these arrangements, the NNPC is the holder of the concession while the IOC is the contractor.
“In 1993, the NNPC entered into PSCs with eight IOCs and Nigeria is believed to have attracted much needed additional foreign investment as a result.
“These new PSCs attracted IOCs due to their favourable fiscal and legal regimes, as IOCs were given a higher profit share for the more marginal and high risk projects off shore,” he explained.
Wase said in 2000, eight new deep water licenses were offered, of which the terms of the PSC were considered to be tougher for IOCs.
He said the reduced risks involved in finding larger deep water reserves was the main reason for tougher profit oil splits in the 2000 PSC terms.
“In 2005, 14 deep water licenses were offered, of which certain alterations were again made to the PSC model contract,” he said.
He said Sections 16 of the Principal Act was amended by adding a new subsection (3) immediately after subsection (2) of the Principal Act.
Wase pointed out that: “Section 16 (3) In accordance with the provisions of subsection (1) stipulated that a royalty rate by price of 50 per cent should be for the additional revenue in the contract area of the Production Sharing Contracts under this Act.
“And the additional revenue shall be determined by the product of the volume of crude oil or condensate sold and the difference between the actual nominal sales price of the oil or condensate and the nominal value of $20 per barrel, (1993 real terms), at the time of sales, provided that the value of $20 per barrel (1993 real terms) shall be determined based on relevant US All Items Consumer Price Index (CPI) as published by the US Bureau of Labour Statistics,” he said.
He said the amendment was imperative to improving government’s revenue for the overall interest of the people.
“I therefore urge this Honorable House to consider it for passage,” he enjoined.
After a debate on the motion, the speaker, put it on a voice vote and the lawmakers unanimously supported it.
He then referred the bill to the House Committee on Petroleum Upstream for further legislative action.
A grassroots organisation known as Sir Siminalayi Fubara Peace Initiative, Friends For Good Governance, has passed a confidence vote on the Rivers State Governor, Sir Siminalayi Fubara over his development strides in the state within a short time in office.
Apart from the numerous development projects embarked upon by the governor in the state, the body expressed delight over the recent payment of N85,000.00 minimum wage to civil servants in the State to reduce the economic burden of workers and their dependants.
Spokesperson of the organisation, Chief Felix Ologara, who addressed newsmen in Bori, headquarters of Khana Local Government Area described Governor Fubara’s administration as the most compassionate, peace-loving and labour-friendly in Nigeria.
Coordinator of the NGO, Comrade Felix Nnaa, also lauded the governor of Rivers State for staying focused on the development of the state despite the challenges by detractors of his administration.
The NGO also commended the newly elected local government chairmen in the state, particularly the chairman of Khana LGA, Hon Martin Nwigbo and his Tai counterpart, Hon Mathew Dike for modelling their leadership style after Governor Fubara’s in providing essential services to the people.
On his part, the Chairman of Khana Local Government Area, Hon. Martins Nwigbo, who also spoke with the press assured that his administration will give priority attention to the development of Khana, particularly in providing security, economic empowerment, human capital development and restoration of power in the area.
Former President of the Ijaw National Congress (INC), Professor Atuboyedia Obianime, has called for a people centred governance in Nigeria.
Prof. Obianime said this at the Rivers Liberation Summit and Awards organised by the Ijaw Wari Initiative Worldwide in Port Harcourt.
He said projects execution are good but government must come up with policies that will create employment opportunities for the people.
The former INC president particularly urged the Rivers State Governor, Sir Siminialayi Fubara, to revive all moribund industries with the view to creating jobs for the teeming unemployed youths in the state and stressed the need for the revamping of the agricultural sector in the state.
Also speaking, a former chairman of the Rivers State Independent Electoral Commission (RSIEC), Dr Sam Sam Jaja, said the Ijaws will never surrender their rights for any reason.
“We know where we come from and we know where we are now; we know the battle we fought and we know the battle we are still fighting and one thing is very important among us, we will never surrender our rights for any reason”, he said.
Dr Jaja said the Ijaws have been known to fight against oppression and marginalisation and commended the Ijaw Wari Initiative for complementing the INC.
“What we are doing today is to honour Ijaw sons and daughters who deserve to be honoured and of course we have one of our elderly sons to tell us what we have done in terms of pursuing leadership”, he added.
He also described the Ijaws as symbols of leadership, adding: “it starts from us and it will continue to remain with us for a long time”
Dr Jaja also declared that with an Ijaw man at the saddle of leadership in the State, the people will see a new phase of governance, adding that areas neglected will be touched, while expressing optimism that the event would equip the participants to face the challenges ahead.
In his welcome address, the president of Ijaw Wari Initiative Worldwide, Somina Wokoma, said the event was to “commemorate the October 30th, 2023, failed attempt to impeach our dear Governor which marked a turning point in our democratic journey”.
“As we converge on this epoch making occasion, we celebrate the triumph of democracy, people oriented leadership and the resilience of Rivers people”, he said.
John Bibor
A non- governmental organisation in Rivers State, the Niger Delta People’s Volunteer Force ( (NDPVF), Opobo/Nkoro Chapter, has tasked Chairmen of the 23 Local Government Areas of the State to urgently focus on aggressive infrastructural and human capital development projects.
This is contained in a statement released by the group in Port Harcourt shortly after her Chapter Executive Council ( CEC) meeting in Opobo Town, and signed by its Coordinator, Commander Idawari Brown; Secretary, Comrade Success Dinne Ebranga and Public Relations Officer, Comrade Lucky Ubani.
The group urged the chairmen and councillors to be proactive in the discharge of their assignment of dispensing quality service delivery in their areas of jurisdiction and admonished them to follow the leadership example of Governor Siminalayi Fubara.
“There is need for the Chairmen of various Councils in the state to ensure that they emulate the leadership style of the governor by building bridges of transformation, human capital development and youth inclusiveness in governance of their LGAs”, the statement said.
The group further admonished the chairmen of the various councils and their Councillors to put in their best in the leadership of their local areas for the well-being of the people.
“The people are in dire need of your contributions for better development bridges in terms of even distribution of development projects and programmes that will have direct- bearings on the people’s welfare and lives.
“They should include those who have what it takes to develop the areas through their contributions to move the area forward developmentally.
“We urge the chairmen of various councils and their councillors not to appoint anybody on political patronage in order to siphon the treasury of the councils.
“We would not tolerate this lackluster attitude from any council chairmen Councillors. The real thing should be done through those with leadership expertise and are ever ready to join forces with them to build a pleasant and virile Local Government Areas administration for posterity.
By: Bethel Toby