Petroleum Industry Bill (PIB) as outlined by the two chambers of the National Assembly is being debated for overlooked issues in the current PIB as well as a new introduction to restrict petroleum products importation license to certain entities.
It has become critical, especially to host communities that the PIB considers all community, economic and environmental issues, and eliminate the oppressive practices of oil companies who exploit the areas.
More so, there is likely going to be a restriction of petroleum products importation to only two entities – Dangote Refinery and the NNPC. The PIB will further restrict licences for small importations.
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Host community on the PIB
As part of its development benefits structure and set-up, the PIB designates a petroleum development trust for host communities.
The provisions further state that the oil companies operating in the area will be liable for the establishment and governance of the trust. It also empowers them to pick the members of the trust and other governing parties.
Host communities further argue the ramifications in the method saying that it hoists the role of oil companies.
More so, the method clearly indicates that the PIB isn’t ready to eliminate the oppressive customs of oil companies.
The demands for the PIB
Activists who have raised their voice for the cause of the host communities on the PIB includes;
- Home of Mother Earth Foundation (HOMEF)
- Corporate Accountability and Public Participation Africa (CAPPA)
- We The People and the Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN)
They are demanding the establishment and governance of the Host Communities Trust by members of the same communities.
The PIB license for petroleum products importation
The arguments of the host communities hold amidst the report that the current design of the PIB will unlikely proffer petroleum importation permits for smaller imports.
More so, the permit for petroleum products importation into Nigeria will be limited only to those who actively own refining licenses, as well as the Nigeria National Petroleum Corporation Limited, NNPC and the Dangote refinery.
Dangote refinery comes into operation in 2022 and the bill will most likely already be passed into law. This would make the group the only license holder to import petrol in high volumes.