- Host communities get 3% in funding
- Exploration in Basin areas to gulp 30% from NNPC
- Gas prices to be determined by market forces
The National Assembly has passed the much anticipated Petroleum Industry Bill (PIB). The passage of the PIB has been stalled for 12 years and over threes administrations. The PIB will grant host communities 3% funding for community development, and 30% of the Nigerian National Petroleum Corporation (NNPC) revenue will be used in oil and gas exploration. According to the PIB, petroleum and gas pricing will now be determined by market forces.
Speaking on the development, the Speaker of the House of Representatives, Femi Gbajabiamila, said, ”I want to underscore how big, what this committee has just done because this has been going on for 20 years. I want to commend the 74 wise men whose work product has now become the work product of 360 men. I want to commend these men and women for their commitment, industry and scholarship in producing this 318-section law. This 9th Assembly will be recorded on the right side of history”.
The passage of the PIB did not go without some drama, as the representatives from the Niger Delta opposed the 3% allocation for community development. They previously demanded a 5% allocation which was rejected.