President Muhammadu Buhari has asked the Senate to amend certain provisions of the controversial Petroleum Industry Act.
The joint National Assembly committees that worked on the PIB had proposed a five per cent equity share for the development of the host communities but the Senate led the campaign for its reduction to three per cent while the House of Representatives approved the panel’s recommendation.
The conference committee set up by the presiding officers of both chambers in their recommendation, fixed the equity share at three per cent and was invariably approved by the National Assembly.
The development generated into controversy with senators from the South-South geopolitical zone kicking against it and asked Buhari to resolve the impasse by seeking amendment to increase the equity share to five per cent.
However, the new amendments proposed by the President did not address the concerns of the South-South stakeholders.
Rather, Buhari’s fresh request centred basically on the need to review the administrative structure of the Upstream Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
Buhari is seeking the senators’ approval to increase the numbers of the non-executive board members of each of the regulatory agencies from two to six, in order to capture the six geopolitical zones.
He said, “The Petroleum Industry Act 2021 provided for the appointment of two non executive members for the board of the two regulatory institutions.
“I am of the view that this membership limitation has not addressed the principle of balanced geopolitical representation of the Country.
“Therefore, I pray for the intervention of the 9th Assembly to correct this oversight in the interest of our national unity.
“Needless to add that this amendment will provide a sense of participation and inclusion to almost every
section of the Country in the decision making of strategic institutions such as oil industry.
“if this amendment is approved, it will now increase the number of the non executive members from two to six that is one person from each of the six geopolitical zones of the Country”
The President also removed the Ministers of Finance and Petroleum Resources from the board of the two agencies.