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$50bn Lost In 10 Years Due To Delayed PIB Passage – Buhari

President Muhammadu Buhari has called on host communities to accept the provisions of the Petroleum Industry Act (PIA).

Gatekeepers News reports that Buhari on Wednesday made the appeal in his remarks on the passage of the PIA.

The President signed the PIB into law on Monday.

A contentious issue in the bill is the allocation of 3 percent of oil companies’ operating expenses for host communities — a percentage tagged as insufficient by some stakeholders.

Buhari said the PIA will bring “real and lasting benefits” to the host communities.

Buhari said, “The ‘Petroleum Industry Act 2021’ creates a regulatory environment that would ensure efficiency and accountability across the oil and gas value chain and reposition NNPC to a commercially driven National Petroleum Company that is accountable to the Federation.”

“The Act also provides for a direct benefit framework that will enable sustainable development of Host Communities.

“I appeal to the host communities to look carefully at the contents of the Bill which in the implementation will bring real and lasting benefits to them.”

Mele Kyari, group managing director of the Nigerian National Petroleum Corporation (NNPC), had said that host communities of oil companies in the Niger Delta could get $500 million annually from the new PIA.

Several stakeholders including Seriake Dickson, senator representing Bayelsa west; Douye Diri, governor of Bayelsa state; Edwin Clark, an Ijaw national leader, have argued that three percent is unacceptable.

The Pan Niger Delta Forum (PANDEF) also described the signing of the PIB into law by Buhari as a “callous act”.

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