The Nigeria National Petroleum Corporation (NNPC), Mele Kolo Kyari, boss may have incurred the wrath of oil communities by asking the National Assembly to peg at 2.5 percent oil profit payable to host communities, according to the Petroleum Industry Bill.
Both chambers are scheduled to meet this week to harmonise the two bills before it is passed for President Buhari’s signature.
But Kyari at a forum in Abuja on Monday, urged the National Assembly to lower the share of oil producing communities to 2.5 percent.
“It was a very, very considered proposal from the executive that we should make it 2.5%,” Kyari told an oil summit in Abuja, adding that it makes business sense and would be “sufficient to deliver value to these communities”.
“We are at the verge of losing them. That is the truth,” he said of the oil majors.
Senator Sabi Abdullahi, speaking on behalf of the Senate president, said the two chambers would agree on a finalised package before recess this month.
“It is not possible for us to abandon this before we go on vacation,” Abdullahi said.
Chief Edwin Clark, leader of the group, whose speech was delivered in Abuja, described the PIB, satanic, unjust and embarrassing to Niger Delta.
He said it has dashed the hope of the people of the Niger Delta region.
Clark said the provision that allocated a huge 30% of profits for further frontier oil exploration in the north was a source of concern.
He said it is an absurd provision especially in a fast changing world as investment shifts away from fossil fuel.
Clark declared that the region has had enough of the post-colonial oppression and will be resisting it.
He said the bill does not reflect the long clamour by the people of the region for equity, fairness and justice.
“Given the depth of ingratitude expressed and delivered after decades of exploitation and neglect of the region, the entire people of the Niger Delta region, for and on behalf of the host communities, vehemently reject the following aspects of the bill: the 3% and 5% of Operating Expenditure granted to the Host Communities; the fraudulent and provocative 30% provision for the Frontier Exploration Fund.
“And now demand: the PIB must be reversed, reviewed and amended to ensure that the Oil-Bearing Communities must now receive not less than 10% of Operating Cost.