L
LequteMan
Guest
The new Petroleum Industry Bill (PIB) has handed host community status to some non-oil states according to a report from Daily Trust.
The bill, which was read for the second time at the House of Representatives on Thursday, provides that states where there is a refinery, petroleum depot or where pipeline passes through will draw from the host communities’ funds.
Nigeria has 5000 kilometres of pipeline network and twenty-one (21) storage depots with over 83 depots owned by independent marketers.
The pipeline networks (depending on the product they are conveying) crisscross states in the West mostly Lagos and South Warri, Port Harcourt, East Aba, Owerri down to the North, Kaduna, Kano and Gombe.
The House passed three different bills on the petroleum industry for second reading including the Senate version already passed by the upper chamber last month.
Leading the debate on the Bill, Rep Joseph Akinlaja (PDP, Ondo), said the law provides that there should be a Petroleum Communities Trust Fund as a corporate body for each local government hosting upstream facilities to manage the monies received as payment for hosting petroleum operations.
He said there shall be a board for the fund and that 0.5 percent of the fund would be allocated to local government councils in the affected communities.
He said the federal government shall pay to each fund the following monies: 10 percent of the total amount payable to a state government from its derivation revenue and 20 percent of an aggregate of the total royalties accruing to the federal government to be evenly distributed by all concerned local governments.
Other monies to be paid by the federal government are 50 percent of government receipt from levies for pipelines payable to host communities hosting such pipelines and the local government shall be the general custodian of the monies.
The bill, which was read for the second time at the House of Representatives on Thursday, provides that states where there is a refinery, petroleum depot or where pipeline passes through will draw from the host communities’ funds.
Nigeria has 5000 kilometres of pipeline network and twenty-one (21) storage depots with over 83 depots owned by independent marketers.
The pipeline networks (depending on the product they are conveying) crisscross states in the West mostly Lagos and South Warri, Port Harcourt, East Aba, Owerri down to the North, Kaduna, Kano and Gombe.
The House passed three different bills on the petroleum industry for second reading including the Senate version already passed by the upper chamber last month.
Leading the debate on the Bill, Rep Joseph Akinlaja (PDP, Ondo), said the law provides that there should be a Petroleum Communities Trust Fund as a corporate body for each local government hosting upstream facilities to manage the monies received as payment for hosting petroleum operations.
He said there shall be a board for the fund and that 0.5 percent of the fund would be allocated to local government councils in the affected communities.
He said the federal government shall pay to each fund the following monies: 10 percent of the total amount payable to a state government from its derivation revenue and 20 percent of an aggregate of the total royalties accruing to the federal government to be evenly distributed by all concerned local governments.
Other monies to be paid by the federal government are 50 percent of government receipt from levies for pipelines payable to host communities hosting such pipelines and the local government shall be the general custodian of the monies.
