BREAKING: Host Communities Highlights Loopholes In Amended Petroleum Industry Act, Calls For Senate Intervention -

Coastal News

The Host Communities Producing Oil and Gas (HOSTCOM) has proposed parts of the Petroleum Industry Act (PIA) that they want modified as the Senate prepares to modify the Act.

They were also concerned about being left out of the picture following the adoption of the Petroleum Industry Bill into law.
On Wednesday, the Senate requested that President Muhammadu Buhari send a bill to the National Assembly amending the PIA, claiming that petroleum subsidies were not included in the 2022 budget after June.

The change will continue the fuel subsidy program, which was also sought in the 2022 Appropriation Act modification.
In a memorandum filed to the Senate Joint Committee on Petroleum Industry’s public hearing on the 2021 PIA (Amendment) Bill, HOSTCOM outlined the gray areas.

According to a memorandum presented by Dr. Benjamin Tamaranebi, the National President of HOSTCOM, his members were not included in the inauguration of the steering committee and the appointment of the various governing boards of the Nigerian National Petroleum Company (NNPC) Limited, Nigerian Upstream Regulatory Commission, and Nigeria Midstream and Downstream Regulatory Authority.

Tamaranebi stated that no attention was paid to concerns impacting host communities during the meetings, as they decried the isolation of the host villages, who are meant to be the first in line for hydrocarbon investment and thus the first key stakeholder.

“We propose that Section 11(2) be revised to read: ‘The Board of the Commission shall consist of one non-executive chairman, two non-executive commissioners, and the commission’s chief executive officer (referred to as ‘the Commission chief executive’ throughout this Act).’ There should also be two more executive commissioners in charge of finance and accounts, as well as exploration and acreage management, and one authority representative not below the rank of director.

“Among other things, Section 28(2) should be revised to read, ‘The commission shall reimburse the commission’s chief executive, commissioners, or any official of the commission for any responsibility incurred as a result of deliberate misconduct or gross negligence.'”