The Senate says it has approved an annual $500 million for oil-producing communities, as funding from the three per cent approved for Host Communities Trust Fund in the Petroleum Industry Bill (PIB).

Mohammed Sabo, the Senate Committee on Petroleum Downstream chairman, said this when he briefed journalists on Thursday shortly after the senate passed the PIB.

Mr Sabo noted that although the committee initially recommended five per cent to the host communities, after consultations, it discovered that three per cent would adequately take care of the communities.

“As of today, what is going to the host communities is three per cent, and three per cent translates to over half a billion dollars annually. This is a lot of money. The bill came with two point five per cent recommendation, and the committee recommended five per cent.

“There were series of consultations we have to look at 2.5 per cent and five per cent. You have to look at the quantum of money involved. After being briefed and further explanations, we discovered that three per cent will adequately be in order in these circumstances,” Mr Sabo explained.

The senator further stated, “The law is not infinite. In two months, anybody can bring an amendment, and we will look at it. We need to encourage investors to come in. The more people come to invest, the more you get three per cent.”

(NAN)