New PIB: Stalemate as Senators refuse to shift ground •Nigeria loses $30bn over non-passage of bill
Our Reporter March 6, 2013 No Comments »

The fragile truce between northern and southern Senators over the new Petroleum Industry Bill (PIB) suffered a setback yesterday as both camps stuck to their pre-conceived positions during the second reading at the Senate chamber yesterday. The north, through the Public Accounts Committee Chairman, Ahmad Lawan, spoke of how the Niger Delta allegedly squandered N11.3 trillion revenue and should not be allowed to waste further national resources in the guise of granting 10 per cent of net profit of oil companies to host communities.

Indications on how the chamber would debate on the bill emerged when Senate President David Mark specifically gave preference to lawmakers from Borno and Yobe states to make their contributions first. Senate Leader Victor Ndoma-Egba (SAN), led the debate on the second reading. He listed the numerous benefits that would accrue to the country if the new PIB becomes law, urging his colleagues to support President Goodluck Jonathan’s reforms in the oil sector. His words: “Given the mono-cultural nature of our economy, and its almost total dependence on oil, the bill has understandably elicited deep local and international interests given the global outlook of the oil industry in terms of technology, expertise and economics.

The bill, when passed, will fundamentally alter the legal, fiscal and proprietary dynamics and regime of the oil sector. It will harmonize and consolidate about 16 diverse and disparate laws that today govern and regulate the sector. It is easily one of the most important bills to be considered by this distinguished and hallowed chamber. “The bill was first introduced in the sixth Senate, but legislative action on it could not be concluded then, because it seemed several versions of it were in circulation in the chamber and elsewhere. “As already indicated, the bill seeks to harmonize and consolidate the several disparate legislations that govern and regulate the oil industry, thus, making its legal framework more user-friendly.

The bill further seeks to: enhance exploration and production of petroleum resources through robust production allowances in both oil and gas. “This will increase our revenue base, ensure favourable fiscal for low producers and develop or drop lease administration mechanism; to promote the Nigerian content by promoting indigenous participation in the petroleum sector and favourable lease administration where international oil companies (IOCs) will explore or relinquish part of their blocs; to create a petroleum host community fund to increase freedom to operate by including host communities as stakeholders.” Thereafter, Mark yielded the floor to Senator Alkali Jajere from Yobe State.

He opposed the 10 per cent grant to host communities as well as the sweeping powers conferred on the Petroleum Resources Minister. Jajere urged the Presidency to immediately commence oil exploration in the “entire Chad Basin, Benue Basin and Sokoto” as “they are places where oil can be discovered. These issues have to be addressed. The powers given to Mr President have to be curtailed. We are not saying this bill shouldn’t pass, but we want these issues addressed.” Lawan spoke next: His contribution almost tore the chamber apart. He detailed how Nigeria had lost so much resources and that section 9 of the new PIB does not address the concerns of Nigerians about the oil industry.

“I support any legislation that would bring improvement in the way and manner we run this country; in the way and manner we generate revenue and make life better for Nigerians. “I’ll support this bill with massive reservations. Most Nigerians, even those in government, don’t know how much oil Nigeria sells; even the Auditor-General of the Federation doesn’t know how many accounts the NNPC has! I take exception to a clause in the bill with the Public Procurement Act… “Why the bill appears controversial is because it’s oil that generates the revenue for Nigeria…I think we should go in search of oil and gas wherever we can find them…” To buttress his argument, Lawan cited Section 53 (2) of the Senate Standing Orders and quoting figures from documents, told the chamber that governments in the Niger Delta states had in the last 13 years, allegedly wasted N11.3 trillion.

An angry Senator James Manager from Delta State sought to stop him through a motion but Mark ruled him out of order. Taking it up from there, Water Resources Committee Chairman, Heineken Lokpobiri, came vide Order 56 ( of the Senate Standing Orders. He said that Lawan was reading from newspapers which was not allowed in the chamber. Again, Mark ruled him out of order. Lawan continued: “Over 13 years, the Niger Delta got N7.3 trillion from the Derivation Fund; N2.7 trillion went to the NDDC in over 10 years, between 2007 and 2012, Ministry of Niger Delta got N50 billion, Amnesty Programme (N250 billion) from the Excess Crude Account alone, Rivers State got N53 billion, more than what the states combined got, and another N72 billion from the presidential initiative on the Ecological Fund.

“Most of the leaders have failed to deliver to the host communities. Injustice to one is injustice to all. It’s my submission that we re-work the 13 per cent derivation. Nigerians, those of us who don’t have oil are tired. As a federation, the oil belongs to everybody,” said Lawan. He also faulted a situation where the Federal Government allegedy spent N700 billion from the Solid Minerals Fund without developing the sector. But Petroleum Resources Committee (Upstream) Chairman, Paulker Emmanuel, countered that Nigeria has lost over $30 billion due to non-passage of the first PIB introduced by late President Umaru Yar’Adua. He said that more than $30 billion would have accrued to Nigeria in terms of revenue from investments in the sector if the National Assembly has approved the PIB in 2010.

“We must have legislation that would reflect the dynamics of the industry. Non-passage of the PIB has kept the industry in a limbo since 2010. In fact, $30 billion would have accrued to Nigeria if we had passed the bill then…We are presently in a limbo. There’s no exploration in that industry presently. We will make history if new PIB is giving accelerated hearing. “The PIB is intended to unbundle the NNPC into three companies, with one of those companies dealing directly with the Joint Venture (JV) partners.” Other Senators, including Isa Galaudu, Mohammed Gobir and Danladi Sankara, however, wondered how a minister would have the powers to hire and confirm appointments of heads of the new oil companies, particularly the National Oil Company (NOC) without the knowledge and input of the National Assembly.

Deputy Senate President Ike Ekweremadu, who later presided over the session, commended the quality and maturity of the debate. After plenary, the Southern Senators’ Forum (SSF) went into another round of meetings where the day’s debate was reviewed and contributions taken from the consultant commissioned on the PIB. Sources present at the meeting said members have resolved to “continue to interface with our colleagues from the North.” “We are confident that the bill will scale the crucial second reading,” another ranking member told Daily Sun. The debate continues today. Recall that the he bill was re-introduced in the seventh Senate as an executive bill with franking measures introduced to ensure that only one version was before this Senate as against our aforementioned previous experience. It was read the first time on September 19, 2012.

SOURCE: http://sunnewsonline.com/new/cover/new-pib-stalemate-as-senators-refuse-to-shift-ground-%E2%80%A2nigeria-loses-30bn-over-non-passage-of-bill/

Well the Southern Senators should lobby the Northern Senators, especially Senators from the North Central. The Govs of oil producing states should be willing to fund the Lobbying move and they should even lobby the Governors of NC states if need be.

The President should also send a Solid Minerals Industry Bill akin to what we have in Ϯh℮ PIB so that the Solid Minerals rich North will have something to gain at the end of the day.
Or better still Ϯh℮ President can pass a Resource Control bill.South African coal industry is worth Billions of Dollars, AustRalia have not been adversely affected by Global recession partly because of their Solid Minerals

Better still GEJ should send a Resource control Bill to the NASS

PIB should be passed @ whatever cost ASAP because the price of Oil will go down in no distant future and if it does I bet you guys that this same Northerners will be the ones championing for Resource Control or they'll secede

The communities whose farmlands and rivers have been destroyed due to oil exploration should have something to gain before value of their God given wealth goes below $10 per barrel.

The north has put up a strong battle to kill this bill. This bill under debate is modified to remove certain clauses and language from the version presented and then withdrawn in December last year. The norther senators have taken time and done due dilligence to study and understand every bit of the bill in order to formulate opposition to it. This is how congress is supposed to function. If the senate body attend to every bill with such vigor most of our laws will be pristine and people friendly.

There is a particular bill to be soon introduced to the floor and I suspect it's in commitee chambers already. In its draft form it's called "Act to provide for the establishment of the National Grazing Reserve and Stock Routes". This bill if passed and becomes an act will give Federal Government irreversible authority to carve out lands in each state of the federation, from existing private lands, to form a network of reservations for pastoralists to graze cattle and sheep. A notice is given to the state governor who then has to resolve the land disposession with farmers and likewise install security to protect pastoralists using reserves within his/her state.

Senators in the South need to contain this bill and restrict the reserves to the North, no grazing reserves should be allowed below Niger/Benue. Relations between farmers and pastoralists is bad as it is, it would get worse with this act. It is unconstitutional to disposess people of their land but eve moreso highly immoral to convert the disposession for the use of a protected group or trade.

This bill should be killed in the committee and blocked frim floor debate. There is a challenge faced with the 2/3 roll call. There are senators in the plateau and benue areas who already are in dissent. The 2/3 north majority can be broken and the bill killed or restricted.

And thus it continues...

Meanwhile the nation is losing revenue like a punctured overhead water-tank. While the debate drags on, royalties due the FG is happily dancing azonto away to foreign EnP company accounts.

Young experienced engineers - like me humble self - dying to set up small servicing coys, smile and swallow ire when we see easily executed contracts go to mushroom firms and expatriates flown in from France, Netherlands, UK, and the US.

These expats with little or or no tertiary education are suited up in shiny coveralls and awarded bumper paychecks for high-school-level jobs that ought to go to hundreds of unemployed nigerians. And when the poor naija guy finally gets the job - prolly through one oga that has greased palms and snapped the contract through the back-door - he is paid peanuts for the same job an expat is paid solid USDs.

Of course, the real question is, will the PIB when finally passed (if ever!) rectify these problems? What does the PIB even contain right now? I wonder...