The House of Representatives has reduced the proposed levy on oil companies for the operation of Petroleum Host Communities Fund from 10 per cent to 7.5 per cent.
The lower chamber of the National Assembly made this change as it continued with the clause-by-clause consideration of the Petroleum Industry Bill at plenary.
The fund, which is expected to cater for the mitigation of all negative environmental impacts on host communities arising from exploratory activities of oil companies was slashed, as lawmakers noted that any attempt to retain the 10 per cent levy may have negative effect on future investment in the sector.
The provision, as contained in clause 116 to 118 of the Petroleum Industry Bill (PIB) currently being considered in the House, is seeking to create the fund independent of whatever interventionist funds already in existence.
The Chairman of the Ad-hoc Committee on PIB, Reps Ishaka Bawa, suggested a reduction of the proposed percentage, asking the House to be mindful of the implication of the levy on future investments in the Petroleum, Oil and Gas Sector.
