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Friday, March 18, 2011

North-South rivalry stops progress of petroleum bill

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Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke

The age-long mutual suspicion between the northern and southern parts of the country over the nation’s economic resources came to the fore again at the House of Representatives on Thursday, stalling the consideration of the report on the Petroleum Industry Bill.

The House boiled as a lawmaker from Zamfara State, Sani Takori, and his counterpart from Rivers State, Mr. Igo Aguma, divided the House on regional lines as they argued over the proper nomenclature for the ownership and control of the nation’s oil resources.

A line in the clause requires that the control and ownership of oil resources be vested in the “Government of the Federation.”


But, Takori, a former Attorney-General in his home state, leading some Northern lawmakers, including the Chairman of the Committee on Millennium Development Goals, Mrs. Saudatu Sanni, said the clause was deficient in defining ownership and control.

He opposed the use of ‘Government of the Federation’, arguing that the clause should rather read “Government of the Federal Republic of Nigeria”, “People of the Federal Republic of Nigeria” or the “Federal Government of Nigeria.”


He claimed that this would bring the PIB in compliance with the 1999 Constitution (2nd Amendment), which vested the ownership and control of mineral resources in the Government of the Federal Republic of Nigeria.

However, Aguma and the Chairman of the Committee on Justice, Mr. Henry Dickson, disagreed with Takori.

The two lawmakers from the South-South argued that it was a matter of “semantics” whether Government of the Federation or Government of the Federal Republic of Nigeria was used in the clause.

The two also insisted on retaining the clause as it was provided in the bill.

Takori and those in his camp had expressed concern that ‘Government of the Federation’ could mean another government other than the Federal Government of Nigeria.

Tension mounted in the chamber as Aguma and Takori began to exchange words.

Aguma, whose committee worked on the PIB, was angry that after about two years of working on the bill, some lawmakers were about to persuade the House to delay its passage.

At a poind during the argument, Aguma pointed at Takori and asked in a rage, “Who knows you in international law? You are a nobody.”

Takori replied, “I know what I am talking about. I have read through this bill and the constitution.

“I have to tell you that we have to take a lot of precautions. I know more than you know.”

Takori had initially sought to stop the consideration of the bill, complaining that it contained over 300 clauses and that members would need time to study the document.

But he was overruled by the presiding Deputy Speaker, Alhaji Usman Nafada.

Nafada, sensing that the debate was taking a wrong course, advised his colleagues not to reduce the PIB to a North-South issue.

“This bill is for all parts of Nigeria and for all Nigerians.It is not for Southerners, neither is it for Northerners alone. It is about how to run the oil and gas industry properly,” he added.

He said that lawmakers should make contributions based on “national interest and the progress of Nigeria.”

Only clause one of the bill was considered before the disagreement started, following which further deliberations were suspended.

Curiously too, only 12 out of the 360 members of the House were in the chamber while the PIB was being discussed. The majority of the lawmakers had long abandoned Abuja for electioneering across the country.

Amidst the rising tension, Nafada called for an abrupt adjournment of the House.

Aguma stormed out, followed by Dickson and a member from Imo State, Mr. Austin Nwachukwu. The House then adjourned till April 19.

The report on the PIB was laid before the House on Tuesday by its joint Committee on Petroleum (Upstream and Downstream), Gas and Justice, two years after it was referred to the committee on March 31, 2009.

A clause-by-clause consideration of the bill had been scheduled for Thursday (yesterday).

The PIB seeks to establish the “legal and regulatory framework” for the oil and gas industry as well as set guidelines for institutions and operators within the sector in a bid to allow for broader participation by investors.

The PIB presents a huge opportunity to further deepen reforms that can redress decades of ineffective management of the oil and gas sector.

The bill, like the Freedom of Information Bill, is dreaded by those afraid of transparency and accountability in the conduct of government business.

Some of the provisions of the bill as fowarded to the National Assembly are, “vesting Oil and Gas resources in the sovereign State of Nigeria.

“Management and allocation of petroleum resources will be in accordance with the principles of good governance, transparency, and to promote sustainable development and economic value to Nigeria.

“Honours international environmental provisions and obligations

“Allows unhindered access for entry into and participation of companies in the industry in accordance with the law. Evolves a transparent, investor-friendly legislation.”

According to the World Bank and other international organisations, Nigeria has lost well over $500bn oil revenues since inception due to lack of transparency in oil and gas operations.

Controversies have trailed the bill amid reports that certain forces in and outside the industry do not want it to see the light of day.

Only two weeks ago, Aguma had named the Nigerian National Petroleum Corporation as one of the forces delaying the passage of the bill.

He claimed that the corporation had submitted 30 versions of the bill to the House and kept seeking for reviews of many sections.

Aguma added that but for the action of the NNPC, the joint committee would have laid the report long before now.

The Senate had also suspended the consideration of the bill before it proceeded on recess on Wednesday.

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