President Muhammadu Buhari on Wednesday appealed to oil producing communities to accept the provisions of the Petroleum Industry Act (PIA).
Buhari signed the PIB into law on Monday after 20 years in the making. It was passed by both chambers of the National Assembly last month.
Though the act was expected to usher in an era of stability and growth for the sector, its passage was greeted with mixed reactions from different stakeholders.
While stakeholders from the Niger Delta region viewed the 3 percent allocated to host communities from the companies operating expenses as insufficient, the industry players said the law would ensure stability and ultimately attract new investments to the sector.
In his speech on the PIA on Wednesday, Buhari said the act will bring “real and lasting benefits” to the host communities.
“The Petroleum Industry Act 2021” creates a regulatory environment that would ensure efficiency and accountability across the oil and gas value chain and reposition NNPC to a commercially driven National Petroleum Company that is accountable to the Federation,” Buhari said.
“The Act also provides for a direct benefit framework that will enable sustainable development of Host Communities.
“I appeal to the host communities to look carefully at the contents of the Bill, which in the implementation will bring real and lasting benefits to them.”
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, had said the host communities of oil companies in the Niger Delta could get $500 million annually from the new PIA.
