The Petroleum Industrial Act (PIA) is recipe for disaster if not amended to make state and local governments nominal observers, and not the active participants as being made Secretary to the PIA board as the law accords them.
What is the relevance of NDDC and so called state oil producing commissions like DESOPADEC to the lives of the common man in oil and gas producing communities?
NDDC and state oil producing commissions have been hijacked by politicians to feed fat. The National Assembly must amend the PIA to put the funds, implementation and management of the PIA boards under the oil and gas companies operating in that locality.
The state and local government councils should stay off the PIA implementation and management of everything about PIA. The Oil companies’ GMoUs instituted in host communities reflect directly on the locals.
The purpose of the PIA is for the locals to benefit from the exploration and production of oil and gas in their localities. So urgent steps should be taken to amend the PIA to prevent politicians from hijacking and feeding fat on it as it is done in NDDC and DESOPADEC.
If the 13% derivations is being judiciously used by state governments, by now oil producing states would not live in lack. The state government and local governments should stay off the PIA if not it will end up feeding politicians and their cronies.
If the NDDC and 13% revenues in the custody of states are used in the direct host communities by now there won’t be breaking and bursting of pipes in the south south.
All management and implementation of PIA must be done by the oil companies operating in that locality if not the PIA funds will vanish into the thin air.
In preparation for the PIA implementation, Delta state government appointed a commissioner for oil and gas that is anxiously waiting to feed on it. Let oil companies manage and implement PIA in their host communities where oil and gas are produced.
The state should use their 13% derivation rather use it as ‘aloof’ to settle party thugs and loyalists. The PIA boards should not be another NDDC and DESOPADEC that are used to settle party members and their fronts.
The oil companies must be the ones to drive PIA boards and funds in the areas of their operations. The oil companies are the one at grassroot and not politicians that can’t be seen unless on election days.
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