The Bayelsa State Governor, Senator Duoye Diri, has expressed his disappointment with the three per cent allocation provided for host communities in the Petroleum Industry Act 2022. Speaking at the Nigeria Oil and Gas Opportunity Fair in Bayelsa, the governor’s representative, Dr Ebiere Jones, revealed that the region producing the “golden egg” should not be at risk.
Although Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation, believes that three per cent of operating expenses allocated to host communities was proportionate to the 30 per cent profit share for oil exploration in the ‘frontier basins’, Jones argued that the Petroleum Industry Act failed to recognise the role of state governments in its implementation.
Jones stated that the PIA only mentioned details to be included in regulations, raising concerns over whether those regulations would be superior to the Act itself. This is because the Act’s clauses appeared to disregard the opinions of Niger Delta stakeholders, leading to dissatisfaction over the low allocation (only 3% of overheads) given to host communities compared to (30% of NNPCL) profits that oil and gas exploration in frontier basins will earn.
Despite their dissatisfaction, Governor Diri’s commissioner acknowledged that the Bayelsa State government was keen to promote collaboration between operators and communities in the oil and gas industry. He highlighted that without such cooperation, there would be no prosperity or development, as the oil industry is a crucial component of the local economy.
Jones commended the Federal Government and the National Assembly for passing the PIA but expressed the opinion that its clauses did not bring enough benefits to the Niger Delta. Rather, he called on the government to ensure that any new opportunities focused on addressing Nigeria’s energy needs.
Additionally, Governor Diri’s commissioner stated that Bayelsa State had experienced a relatively peaceful three-year period, attributing that to the state government’s efforts.
In summary, the Bayelsa Governor expressed the need for greater involvement of state governments in the implementation of the PIA, as well as reviewing the clauses, citing the dissatisfaction of the Niger Delta communities key to the oil and gas industry.
