Former president of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Peter Esele, has blamed the lack of synergy between governors of oil-producing states and the National Assembly for the controversial passage of the Petroleum Industry Bill (PIB).
Esele, who spoke in an exclusive telephone interview with BusinessDay in Benin City, noted that the lack of symbiotic relationship between the governors and the National Assembly members was responsible for the different recommendations of 3 percent and 5 percent to the oil-producing host communities.
Esele, also a former president of the Trade Congress of Nigeria (TUC), noted that the governors and members of the National Assembly from the oil-producing states should have been interfacing before the PIB final passage.
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While recommending not less than 5 percent for the host communities, he, however, called for a political solution to the controversy.
He also described as uncalled for the formulation of business decisions and policies for the board of directors of the proposed privatisation of the Nigerian National Petroleum Company (NNPC).
“My surprise is that when the bill was in the parliament, the South-South governors were not briefed by the senators representing the geo-political zone. If they were not briefed that is unfortunate and very sad.
“So, that is a major challenge they also have to face. They are being reactive now instead of being a part of making things happen”, he said.
Esele added that he would have commended the National Assembly for the passage of the bill after more than a decade if it wasn’t generating crisis.
The former labour leader opined that the reactions so far seen showed that the National Assembly did not properly tidy up their work.
“So, if lawmakers could not agree on the bill they passed, then, it invariably means that the law has not been passed. You also know that it is not a law yet until the president assent to it.
“But why this PIB is ‘good’ is that at least people who have companies in the sector now know their rights and know what they can do and what cannot be done. Also, they can now make what I called ‘financial decisions’. Should I put the money here or shouldn’t I? So, this is now a legal framework for the industry.
“But if you notice, the argument is right now is the political and emotive sides. On the political and emotive sides where we have the argument is the amount of percentage going to host communities and the frontier basins.
“These are the only two sides we have arguments, and these ones can be solved politically. If we’re able to resolve it politically I think we can move on”, he added.
