the local government shall be the general custodian of the monies.
“Host communities include both where oil is produced and where pipeline passes as well as where there’s oil installation which can constitute danger to human beings. Nobody knew 10 years ago that oil would be produced in Lagos.
“Communities where oil is produced suffer different degrees of degradation. There are communities that don’t know night because of gas flaring, because there’s always light, but it is dangerous light.
“The core place where crude oil is mined has different percentage from where flow station is. Where the pipelines pass, they’re also part of the communities, but they’re graded in the bill. There are areas we call impacted communities,” he said.
The lawmaker also said the law would encourage people to come into the country for exploration businesses even before production, which would in turn increase investment, transparency and profitability.
On host communities, he said when there is vandalism, where the pipeline passes suffers, not the communities where the exploration takes place.
The bill passed by the Senate has broken the Nigeria National Petroleum Corporation (NNPC) into two commercial entities namely: National Oil Company and the Nigerian Petroleum Assets Management Company.
The NPC would take charge of petroleum products, while the NPMAC would operate as a commercial entity with the responsibility of managing all assets currently held by the NNPC.
The bill also proposed the establishment of the Nigeria Petroleum Regulatory Commission (NPRC) to serve as the regulator responsible for licensing, monitoring, supervision of petroleum operations enforcing laws, regulations and standards across the value chain.
Meanwhile, the House has referred the three bills to a special ad-hoc committee on PIB to be headed by Chief Whip, Alhassan Ado Doguwa, while other members of the panel include Akinlaja, Nwokolo, Reps Emmanuel Yisa Orker-Jev, Musa Sarkin Adar, Ossai Nicholas Ossai, among others.
The NPC would take charge of petroleum products, while the NPMAC would operate as a commercial entity with the responsibility of managing all assets currently held by the NNPC.
The bill also proposed the establishment of the Nigeria Petroleum Regulatory Commission (NPRC) to serve as the regulator responsible for licensing, monitoring, supervision of petroleum operations enforcing laws, regulations and standards across the value chain.
