New PIB: North, South-South in fresh battle •North raises review committees •Senators, Reps on board •May block critical sections of bill

 

A fresh battle appears on hand between oil-rich South-South states and the North over the control of Nigeria’s oil resources,    following indications that the Northern political establishment is raising eyebrows over some contents of the new Petroleum Industry Bill (PIB).

Investigations by Sunday Tribune confirmed that different segments of the Northern political establishment have commenced studies on the PIB immediately it was ratified by the Federal Executive Council.

It was also gathered that lawmakers at the upper and lower chambers of the National Assembly have been recruited to carefully study the contents and x-ray areas that are inimical to northern interest.

Early in August, some lawmakers of the Congress for Progressive Change (CPC), who are from different Northern states, briefed the leadership of the party and confirmed that they were keeping close eyes on the provisions of the PIB.

It was gathered that the Northen Senators Forum (NSF), under Senator Umaru Dahiru, had studied the bill and highlighted areas suspected to be inimical to the North for appropriate action.

Sources confirmed that one aspect of the bill found offensive by the North was the section that recommended the setting up of a community fund. This was seen as another form of derivation fund, which could further deplete the earnings of other non-oil producing areas in the federation account. The same issue had formed one of the contentious issues that killed the first PIB.

According to section 118 of the draft bill, every oil company operating in the communities is expected to contribute 10 per cent of its profit to the Petroleum Host Communities Fund (PHCF) which is to directly address issues of environmental degradation and pollution.

Sources close to the thinking of the North, however, said that the move could further reduce the funds available to the federation account and that the North was wary of such provisions.

One of the interpretations given the provision was that it was capable of impoverishing the states, a source said.

It was gathered that the battle over the new PIB would automatically put the North against the South-South as the oil rich communities have welcomed such provisions as progressive.

A source monitoring the development in the North said that the politicians were talking to lawmakers in the two chambers of the National Assembly to carefully study the implications of the PIB.

“I can tell you that one of the things paramount in the North now is the PIB. The second is the search for state police, which is a backdoor agenda of some people. The North is carefully studying these two provisions, one in the constitution and the other an Act of the National Assembly. The North is wary of any provisions that could further impoverish the zone,” a source said on Saturday.

Going by the push from governors of the South-South, it appeared, however, that the zone would also not compromise anything that would reduce the interest of the host communities already protected in the draft bill.

According to a source, the North was of the view that while the nation is still grappling with implications of 13 per cent derivation, adding another percentage to the earnings of the oil rich areas could amount to full resource control.

It is expected that the National Assembly would kickstart the debate of the new PIB after the annual recess, which terminates in the last week of September.