Senate Also Passes Oil Industry Bill, With 3% Of Profits Going To Host Communities

July 01, (THEWILL) – Following the footsteps of the House of Representatives, the Senate on Thursday passed the Petroleum Industry Bill and approved 3 percent for the host communities

However, the Senate’s approval of 3 percent for the host communities sailed through despite protests from South-South lawmakers, who demanded 5 percent.

The PIB passed third reading after Mohammed Sabo, Chairman of the Joint Committee Petroleum (Upstream and Downstream) and Gas, presented a report and its clauses were put to voice voting.

While presenting the report on Thursday, Sabo said the legislation is aimed at “promoting transparency, good governance and accountability in the oil and gas sector.”

The Chairman said the committee recommended that 30 percent of the Nigeria National Petroleum Corporation (NNPC) profit from oil and gas should be used to fund exploration of frontier basins.

The committee Chair said: “The various obsolete laws currently in operation in the country have been updated and consolidated in this chapter to meet global competitiveness and best practices.

“A total of 355 amendments were recommended to this chapter while others were retained.”

The Senate had before then held a closed session with the Minister of State for Petroleum, Timipre Sylva, and the Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari.

Senate President Ahmad Lawan, congratulated the lawmakers and said the Ninth National Assembly has achieved one of its fundamental legislative agenda.

“The demons (of PIB) have been defeated in this Chamber. We have passed the Bill,” he said.