“The Niger Delta region remains dissatisfied with the three percent allocation of operating costs to host communities as stipulated in the Petroleum Industry Act (2022),” stated Governor Duoye Diri of Bayelsa State. He emphasized the need to protect the region that produces the “golden egg” of oil.
As maintained by PUNCH, this statement was made by Dr. Ebiere Jones, the Commissioner for Mineral Resources in Bayelsa State, during the Nigeria Oil and Gas Opportunity Fair held in Bayelsa on Thursday.
While the Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, argued in 2022 that the three percent allocation to host communities exceeded the 30 percent profit share for oil exploration in the “frontier basins,” Jones, representing the governor at the fair, highlighted the oversight of the role of state governments in the Act.
“Authorities have mentioned that the details will be addressed in the regulations. However, it is unclear whether the regulations hold more weight than the Act itself,” Jones explained. “As a state government, we strive to create a conducive environment for operators in the oil and gas industry. Our youth programs emphasize the importance of collaboration with oil companies, as this is crucial for prosperity. The oil industry remains a focal point of our economy.”
Jones also acknowledged the relative peace experienced in the state over the past three years, attributing it to the efforts of the state government. He expressed gratitude to the Federal Government and the National Assembly for the enactment of the Petroleum Industry Act but expressed dissatisfaction on behalf of the Niger Delta people.
“The Act has generated discontent among the people of the Niger Delta due to the mere three percent allocation of overhead costs to oil-producing communities, while a substantial 30 percent of NNPC’s profits in the oil and gas sector are allocated to exploring frontier basin areas,” Jones noted. “We must ensure that the opportunities mentioned by Mr. Simbi Wabote, the Executive Secretary of the Nigeria Content Development and Monitoring Board, are aligned with the country’s energy needs.”
Jones further criticized the slow implementation of the programs, highlighting that only the Shell Petroleum Development Company had provided assurance regarding the community development trust fund for the host community.
“As a government, we believe that the implementation process is lagging, depriving these small-scale development industries of valuable opportunities,” he concluded.
