The Nigeria Extractive Industries Transparency Initiative (NEITI) has asked the National Assembly to ensure that the provisions of the proposed Petroleum Industry Bill (PIB) were redrafted to accommodate the interest of the host communities in the ownership of natural resources.
The Chairman of NEITI, Ledum Mitee, who presented NEITI‘s position on the PIB and the proposed host communities fund (HCF) provided for in the draft legislation at the Senate, said the lawmakers should ensure uniformity in addressing the problems of all communities located in mineral producing areas, including those in the petroleum industry.
“NEITI however believes that the preferred option is for the communities to be directly impacted by the funds through a process which pertains in the minerals sector in Nigeria, whereby the communities enter into an agreement with licensee or lease-holder, as the case may be, and agree as to terms and conditions regarding the fund,” Mr. Mitee said.
He reiterated NEITI’s position that the petroleum host communities fund should function according to the same or similar mode provided for under the existing Minerals and Mining Act, adding that there was need for clarity in the mode of administration of the fund to ensure direct impact to the benefiting community.
Mr. Mitee drew the attention of the Senate to a provision in Section 2 of the PIB, which vests in the government of the federation the entire property and control of all petroleum in, under or upon any lands within Nigeria, its territorial waters, or which forms part of its Continental shelf and Exclusive Economic Zone. Read more