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BREAKING: House Of Reps Steps Down PIB, After South-South Lawmakers Agitations

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After an hour-long closed-door session, the House of Representatives has withdrawn the contentious Petroleum Industry Bill.

While the House is on recess, more deliberation is expected on the decision.

Earlier in the day, parliamentarians from the South-South had spoken out against the three percent harmonized PIB distribution to host communities.

On the House floor, legislators were heard yelling “5%,” as opposed to the current three percent.

Despite senators’ complaints, the three percent grant to host communities was approved in the Senate.

The percentage of total operating expenses (OPEX) that oil firms are supposed to contribute to a trust fund established for host communities is in dispute.

The approval has been criticized by two southern senators, George Sekibo and Seriake Dickson.

Senator Sekibo stated that he was not present during the voting on the allocation provision, whereas Senator Dickson stated that his privilege had been violated because his views were not taken into account.

Senate President Ahmad Lawan, on the other hand, responded that the Senate had passed a resolution on the subject and that it could not reverse its decision.

After the National Assembly enacted the PIB earlier this month, one of the issues still under review was the allotment of host communities.

Nigeria’s oil industry is likely to be transformed by the PIB.

The 3% is different from the 13% derivation fund, which comes from the federation account and is given to oil-producing towns.

Instead, the three percent allocation will come from an entity’s actual yearly operational expenditures in the upstream, middle, and downstream sectors from the previous financial year.

All donations will be placed in a trust fund for the benefit of the host communities.

According to a draft of the PIB, the trust fund will help oil firms and host communities maintain peace and good relations.

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