Senator Seriake Dickson has raised concerns over the approval of 3% host community allocation in the PIB.
Speaking to the media after walking out, Senator Dickson said his privilege had been breached as his views were not accommodated.
Senator Seriake Dickson said, “First of all you were all here today during the consideration of the conference report and the observations and interjections that I made by which the Senate President permitted me under privileges to make some comments and I made it clear that the three percent ab initio is unacceptable, it is insensitive. It does not serve the national interest because the opportunity cost that this two percent difference will make in terms of security management of the region and of the communities is not helpful to investment inflo that people are portraying.
“In any case this is not coming from the Federal Government that is why I cannot understand the basis. This money is to be taken out of the operation cost by the IOCs, and the IOCs are not complaining. Yet this National Assembly and this Senate pegged it at three percent. There was a time we went into conference and they still upheld the three percent.
“This morning I drew the attention of the Senate President and the Senators that in all good conscience to what has happened to the community fund, we will not sit down with them during consensus and I worked out.
“I walked out with some colleagues initially the very day this was passed and as I informed the Senate President even during the President’s dinner when we were seated there to honour the President, and we got the report of this conference committee, I walked out, a number of senators also left.
“And today, we left because I don’t want history to record us on the wrong side. Some of the Senators who followed me, I thank all of them.
“We don’t want history to record that we were part of this obnoxious decision against the producing communities and our people. It is also a decision that is not helpful to the national cause. This is a story that has just started and I hope that it ends well for Nigeria.”
The host community allocation was one of the clauses left in consideration after the National Assembly passed the PIB earlier this month.
The PIB is expected to transform Nigeria’s oil industry.
The three percent is different from the 13 percent derivation fund which is paid to oil-producing communities from the federation account.
Instead, the three percent allocation will come from an entity’s actual yearly operating expenditure of the preceding financial year in the upstream, midstream and downstream sectors.
All contributions will be deposited in a trust fund for host communities.
According to a draft of the PIB, the trust fund will enhance peace and cordial relationship between oil companies and host communities.
