Reps Reject Bauchi As Oil-Producing State

Channels Television  
Updated July 15, 2021
In this photo released by the House of Representatives, some lawmakers are seated during one of the plenaries in the lower chamber of the National Assembly in Abuja.


The House of Representatives has shut down a motion asking the Federal Government to declare Bauchi State as an oil-producing state.

The motion was sponsored by Yakubu Abdullahi.

But when put to vote, a greater number of lawmakers voted against the motion.

There are currently a total of eight oil-producing states who receive a 13% derivation fund from the Federal Government.

The derivation fund is paid to the states monthly to assist their oil-producing communities in tackling environmental pollution and degradation, provision of basic amenities like healthcare, potable water and paved roads, and economic empowerment of the community people.

Meanwhile, earlier, the House of Representatives had stepped down the controversial Petroleum Industry Bill after an hour-long closed-door session.

Lawmakers from the South-South had opposed the harmonised PIB allocation to host communities which was pegged at three per cent.

[Read Also] Senate Adopts 3% Allocation To Host Communities As South-South Lawmakers Kick

The lawmakers were heard chanting “five per cent” as against the three per cent at the floor of the House.

The host community allocation was one of the clauses left in consideration after the National Assembly passed the PIB earlier this month.

The PIB is expected to transform Nigeria’s oil industry.

The three per cent is different from the 13 per cent derivation fund which is paid to oil-producing communities from the federation account.

Instead, the three percent allocation will come from an entity’s actual yearly operating expenditure of the preceding financial year in the upstream, midstream and downstream sectors.

All contributions will be deposited in a trust fund for host communities.

According to a draft of the PIB, the trust fund will enhance peace and cordial relationship between oil companies and host communities.