Reps call for sanctions for oil companies violating PIA
The House of Representatives has urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to revoke the licences of any International Oil Companies (IOCs) violating the Petroleum Industry Act (PIA).
The house also recommends that companies violating the protocols of the United Nations Framework Convention on Climate Change (UNFCCC) Clean Development Mechanism (CDM) and Greenhouse Gas (GHG) should be equally sanctioned.
The resolution was a sequel to a unanimous adoption of a motion by Rep. Victor Obuzor (PDP-Rivers) at the plenary on Tuesday.
Moving the motion, Mr Obuzor said that Section 240 of the Petroleum Industry Act (PIA) stipulates that oil and gas companies should remit three per cent of their annual operational expenditure to producing host communities via the host community development trust fund.
He said that the main objective is to foster sustainable prosperity within the communities, provide direct social and economic benefits, and enhance harmonious co-existence.
“Concerned that two years after the coming into effect of the PIA, oil-producing companies have deliberately refused to make the necessary remittance as mandated by the PIA, thus sparking agitation within the host communities as they are feeling shortchanged.
“The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which is mandated to facilitate speedy implementation of the 3 per cent OPEX, has awarded a penalty of $1,825 million to the defaulting oil companies, which is to be paid at the rate of N52,500 per day as stipulated by the Petroleum Industry Act,” he said.
In his ruling, the Speaker of the House, Rep. Tajudeen Abbas, mandated the committees on host communities, petroleum resources (Downstream), and petroleum resources (Midstream) to investigate and report back within six weeks.
(NAN)
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette
Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices
Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”
NationWide
Focus on criminals, stop targeting journalists, CPJ tells Nigerian security agencies
She also pointed out harsh bail requirements imposed on journalists, describing Mr Ugagbe’s bail conditions as “utterly punitive.”
Education
Tinubu upgrades Nasarawa poly to university
Mr Onanuga said the approval followed a proposal by Senator Ahmed Aliyu, who represents the Nasarawa West Senatorial District.
Lagos
Lagos govt signs agreement to automate vehicle registration
Mr Osiyemi said the initiative would simplify and speed up vehicle registration by eliminating cumbersome processes.
States
Three rescued, one body recovered as building collapses in Kano
The PRO attributed the collapse to the use of poor and substandard building materials.
NationWide
FG calls for stronger African collaboration to combat illicit wealth, transnational corruption
Mr Fagbemi added that the recovery and transparent management of proceeds of crime remained a key pillar of the country’s anti-corruption policy.
Heading 2
FG reiterates commitment to ensuring safe return of Nigerians from South Africa
“The last evacuation flight, which is expected to bring home approximately 300 of our nationals, is expected to arrive in Nigeria next week,” Mr Ebienfa said.
