TheCable

Bismarck Rewane, managing director, Financial Derivatives Company (FDC) Limited, says 3 percent allocation for oil-producing communities in the Petroleum Industry Act is “unfair and rape” to the host communities.

On Monday, President Muhammadu Buhari signed into law the much-anticipated PIB.

Before the president’s assent, the bill was also a subject of controversy, especially during passage in both chambers of the national assembly.

Some major stakeholders from the oil-producing communities had argued that the percentage earmarked for oil-producing communities is not enough, owing to the negative impact of oil exploration in those communities.

Speaking on the development during an interview with Channels Television, Rewane noted that 3 percent share is unfair to the oil-producing communities, considering the “level of multi-dimensional poverty and degradation” in those communities.

“Finally, the big elephant in the room, the host communities and the 3 percent. Is the 3 percent the ideal, optimal compensation for the host communities? I will say, ‘No’, but I come from there.

“At the same time, what is more important for the oil communities, like where I came from, is the transparency of how the money that is coming there is spent and the impact it would have rather than having a tea party.

“I am not sure that it is fair for the oil-producing communities who suffer and if you look at it, if you go there, compared to other parts of the country, where they produce no oil and see the level of affluence, level of multi-dimensional poverty, level of theft, degradation, these communities are.

“It is rape, and that is what is happening. Let me say that an imperfect bill is better than no bill. The host community’s issues are going to be seriously debated, and the problem is that there is a time between misunderstanding and violence, which is between 12 months or 6 months. You will find that misunderstanding, violence, squabble, and political distortion will be the bane of this bill.”

Rewane noted that the signing of the bill would bring an end to the “abuse of NNPC officials in the running of the company”.

He said the assent of the president to the bill is symbolic and a major milestone.

“It brings to an end a never-ending journey which started 20 years ago. The first bill went to the national assembly 13 years ago. An imperfect bill is better than no bill.”