Bismarck Rewane has criticised the allocation of three per cent share for host communities in the just assented Petroleum Industry Bill.
“The governance is there and there will be the incorporated joint venture. So, Nigeria’s investment will be covered by a joint venture just like the NLNG model. So, that brings an end to the abuse by NNPC officials in the running of the company.
“Oil contributes 10 per cent of our GDP but it contributes 75 to 80 per cent of our foreign exchange earnings, 70 per cent of our fiscal revenues and when we take LNG and add it to oil, we’ll have 95 per cent of revenues. So, directly or indirectly, this is the goose that lays the golden egg. We’ve got to nurture it even though the obsolesce of oil is a declining function of time right now.
“Finally, the big elephant in the room; the host communities and the 3 per cent allocation. Is the 3 per cent the ideal, optimal compensation for the host communities, I will say, ‘No’, because I come from there but at the same time, what is more important for the oil communities is the transparency of the money that is spent and the impact it has rather than having a tea party.
“Issues are going to be seriously debated in the host communities and the problem is that a time between misunderstanding and violence which maybe 12 months or six months is much shorter today, you will find that misunderstanding and violence, squabbles and political disruptions is going to be the bane of this thing because everybody in town is going to want to be a traditional ruler.”
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