PIB: 30% Of NNPC Profit For Oil Exploration In North Unacceptable – Southern Governors

Governors of the southern states have expressed their dissatisfaction at allocation of 30 percent share of the proposed Nigeria National Petroleum Company Limited (NNPC) for frontier basins exploration.

Stakeholders in the oil-rich communities have also expressed their displeasure at the passed Petroleum Industry Bill (PIB). They vehemently opposed the allocation of 30 percent to oil exploration in frontier basins – which they said it basically in the north.

Rising from its meeting on Monday, the southern governors, who commended the national assembly for the passage of the PIB, requested that the ownership of NNPC limited be in the trust of Nigeria Sovereign Investment Authority (NSIA) instead of the federal ministry of finance.

“The southern governors’ forum at the end of the meeting held on Monday, 5th July, 2021 reviewed the situation in the country and focused on the current security situation, constitutional amendment, Petroleum Industry Bill (PIB),” a communique signed by Oluwarotimi Akeredolu, Ondo governor and chairman of the Forum, reads.

“The Forum commends the National Assembly for the progress made in the passage of the PIB;

“the Forum rejects the proposed 3% and supports the 5% share of the oil revenue to the host community as recommended by the House of Representatives;

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“the Forum also rejects the proposed 30% share of profit for the exploration of oil and gas in the basins;

“However, the Forum rejects the ownership structure of the proposed Nigeria National Petroleum Company Limited (NNPC).

“The Forum disagrees that the company be vested in the Federal Ministry of Finance but should be held in trust by Nigeria Sovereign Investment Authority (NSIA) since all tiers of Government have stakes in that vehicle.”

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