The National Assembly has been criticized for the three percent oil firms’ operating expenditure allocated to host communities in the Petroleum Industry Bill (PIB) passed by the red chamber on Thursday, last week.
Stakeholders who spoke with BusinessDay in Benin City are Godwin Uyi -Ojo, executive director of Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN) and David Ugolor, executive director of Africa Network for Environment and Economic Justice (ANEEJ).
They lamented that the percentage in the bill is not commensurate with the devastating impacts of oil pollution that has ravaged the region and made it inhabitable for residents.
Uyi -Ojo said the three percent allocated, as against the recommended 10 percent by the host communities, is insensitive to the years of suffering for the people of Niger Delta.
According to him, the three percent stake for host communities is unacceptable and it should be 10 percent. The environment of the Niger Delta stands degraded and the people’s livelihoods are destroyed.
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For the 30 percent of profits for the exploration of oil in frontier states, the executive director said it is retrogressive “as the Environmental Rights Action (ERA) continues to pursue a transition from fossil fuel to renewable.
Recommending, he said, “the 30 percent should be immediately reverted to investment in renewable energy generation. Government should stop investment in fossil fuel oil and gas, and channel such resources to developing a new energy system which is solar energy in order to grant more energy access to the population.
“This may help the rural communities in the generation of electricity and meeting national demand on electricity. So, at this moment in time, the world is moving towards a transformation of the energy system from fossil fuel economy to renewable energy economy which is going to be achieved by 2030.
Also speaking, David Ugolor, who was hopeful with the future gains of the bill, however, said some of the issues that the people have been demanding for have not been properly captured.
“But our hope is that whatever that is passed in this current bill will serve as a precedent to continue to move forward. Apart from the money, we should talk about the impact of this industry in the region and resources allocated for restoration because the oil pollution is huge.
“If the environment becomes inhabitable it will be difficult for people to live there because they are not able to survive. So, the earlier the government uses this PIB to demonstrate an opportunity where they can deal with the oil pollution challenge, the better for everybody,” Ugolor said.
