Why Southern Governors Rejected The New PIB Formula

Why Southern Governors Rejected The New PIB Formula

At its meeting in Lagos on Monday, the Southern Governors’ Forum rejected the equity shareholding percentage assigned to oil host towns.

Why Southern Governors Rejected The New PIB

iexclusive News Nigeria reports that the Southern Governors Forum has rejected the proposed sharing mechanism in the recently enacted Petroleum Industry Bill.

This is stated in a statement issued following the Governors’ meeting in Lagos on Monday.

The 17 Southern Governors also agreed that Nigeria’s president should be rotated between Southern and Northern Nigeria.

The statement was issued by Governor of Ondo State and Chairman of the Southern Governors’ Forum, Oluwarotimi Akeredolu.

“The Forum rejects the proposed 3% and endorses the House’s recommendation of a 5% share of oil earnings to the host community.” 

The forum also rejects the planned 30% profit sharing for oil and gas exploration in the basins, as well as the proposed Nigeria National Petroleum Company Limited ownership structure (NNPC).

The Forum contends that the oil firm should be held in trust by the Nigeria Sovereign Investment Authority rather than the Federal Ministry of Finance (NSIA).

Before the Bill was passed, the Southern governors had a conference in March and opposed the Bill’s initial 2.5 percent sharing mechanism, calling it “inadequate.” Instead, the governors sought 10%.

Since its passage last week, the Bill has been the subject of intense scrutiny and criticism.

Legislators from the oil-producing region objected to the equity shareholding, but Senate President Ahmed Lawan rejected them.

iexclusive News Nigeria reported that the bill was also rejected by the Niger Delta Congress, which described it as a weapon to “plunder resources” and “enslave” the people of Niger Delta.