Lawmakers in the House of Representatives have declared their intention to negotiate a higher share for host communities from 3 percent to 5 percent, as enshrined in the Petroleum Industry Act (PIA).
In an interview with Vanguard, one of the reps members representing Obio/Akpor Federal Constituency of Rivers State, Kingsley Chinda, described the PIA as a “bad law”.
Chinda said that the definition of what a host community is should not be left to operators, adding that there should be a yardstick that would serve as a standard definition of the term.
He said, “We have consistently condemned the PIA, which is one of worse laws in recent time. Our position is justified by the hurried need to amend same.
“Any law that will not make for peace in the country is a bad law and contrary to Section 4 (2) of the Constitution that empowers NASS to make laws for the peace, order and good governance of the country.
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“The PIA will cause crises in the Country and therefore is a bad law. Aside the devilish 3% for host Communities, how do you leave the definition of host communities to the discretion of the operators? There must be some clear yardstick.
“How can you punish host communities for any sabotage on oil facilities? Who has the responsibility to protect the oil facilities?
“I hope that the amendment sent to NASS will afford us the opportunity for a holistic amendment to take care of all or most of the anomalies in the Act. I pray the leadership of NASS will see reason to allow reason prevail this time”.
Prior to the passage of the PIA at the National Assembly in July, the Senate has suggested a 3 percent share for host communities while the House of Representatives suggested 5 percent.
However, a joint committee involving members of the Senate and the House settled on 3 percent, causing a divide in opinions on the allocated equity.
