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PIB: Gov Diri seeks resolution of ambiguity in provisions for host communities

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Gov.-Douye-Diri
Gov. Douye Diri of Bayelsa
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Gov. Douye Diri of Bayelsa has called for clarity in the definition of host communities in the recently passed Petroleum Industry Bill (PIB) to avoid potential conflicts.

The bill, which was passed into law recently by the senate, is the first in a series of long awaited petroleum industry laws designed to reform the Nigerian oil and gas industry.

The PIB is an omnibus law, meant to regulate the entire sphere of the industry and repeal all current existing oil and gas legislation.

It struggled to see the light of day in spite of its introduction to the National Assembly over 16 years ago.

Diri, who spoke on a Channel’s Television breakfast current affairs programme  said that three per cent of oil revenue for host communities who suffered devastating effects of exploration and exploitation activities was grossly inadequate and called for an upward review.

He said that prior to Monday’s meeting of the southern states governors in Lagos, the states had been in consultation with relevant stakeholders on their position, which he said was a minimum of 10 per cent of oil revenue to oil producing communities.

According to him, it is unacceptable that a provision of 30 per cent profit of the Nigerian National Petroleum Corporation was inserted in the controversial bill for “frontier exploration” in areas that were not clearly specified.

Diri frowned at the definition of oil producing communities and host communities to include areas where pipelines were laid.

He called for a reversal of such proposal, saying it was a time bomb that if not properly addressed, could create avoidable crises.

The governor restated his commitment and that of his colleagues in the Southern Governors Forum to continuous dialogue to resolve issues that bordered on challenges faced by oil producing communities and states.

Responding to a question on open grazing, Diri described cattle rearing as a private business that the states had power to regulate, stressing that there was no going back on the ban of open grazing in Bayelsa, which he said was no longer sustainable.

 

 

 

He stated that the ban was in force in the state since he assented to the bill on March 11, 2021.

On the issue of the governors’ resolve that the president of the country should emerge from the South in 2023, he said although it was a political decision that required consultations and lobby, a president of Southern extraction in the next election would encourage peaceful coexistence.

“Governors did not wait until now to speak on the PIB. Speaking on behalf of my state, we had a position and it was made very clear during the public hearings.

“It is unthinkable and total injustice to allot three per cent to oil producing communities. We stated our position of 10 per cent.

“The definition of host communities or oil producing communities is also worrisome.

“Oil producing communities should not be where pipelines are laid. If the issue of what an oil producing community is, is not addressed, it is a time bomb that can explode.

“The issue of cattle grazing is a commercial, private activity. I do not see why we needed anybody’s opinion to regulate a private activity.

“We have a duty to protect our people. That is why we have state assemblies. In Bayelsa, it already came into effect since March 11, 2021. Open grazing is no longer sustainable. We need to stop it.

“On the issue of Southern presidency, the governors will have to engage in lobby.

“But it is only natural justice for the south to produce the president after President Buhari’s eight years. It is not constitutional but a gentleman’s agreement to encourage cohesion and peaceful coexistence,” Diri said.

Diri said although COVID-19 slowed things down globally, his administration had made appreciable progress in road and infrastructure development, urban renewal of the state capital, Yenagoa, as well as in ensuring peace, unity and reconciliation within the last 16 months of being in office.

He assured that his administration was committed to development of every sector of the state’s economy and called for support from Bayelsa people.

(NAN)

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Business & Economy

Market Patronage Declines as Rising Prices Hit Ekiti Traders

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Traders in Ekiti State have appealed to governments at all levels to take urgent steps to address the rising cost of goods and ease the economic burden on citizens.

 

 

Our correspondent, Oluwaseun Adebolu, who visited Market places in Ado-Ekiti to assess the situation, said that many traders called for increased government support to improve business activities and enhance the welfare of residents.

 

 

The traders commended the Ekiti State Government for its efforts to promote local businesses but stressed that additional interventions targeted at traders and families would further improve their standard of living.

 

 

They expressed concern over the persistent increase in the prices of goods and commodities, attributing the trend to high transportation costs and the impact of the removal of fuel subsidy on the economy.

 

 

According to the traders, many essential items that were once affordable have become increasingly expensive, making it difficult for both traders and consumers to cope with current economic realities.

 

 

They also noted a shift in consumers’ buying habits, explaining that many customers now prefer shopping in markets closer to their homes to reduce transportation costs.

 

 

The traders further lamented a decline in market patronage, saying sales have dropped significantly compared to previous years due to reduced purchasing power.

 

 

They urged the government, relevant agencies, and other stakeholders to introduce measures such as palliatives, soft loans, and transportation subsidies for traders to cushion the effects of the economic hardship and stimulate commercial activities across markets in the state.

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FG Dismisses Reports of New Telecoms and Fuel Taxes, Says No Such Plans Under Consideration

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President Bola Ahmed Tinubu
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The Federal Government has dismissed reports claiming that it has introduced or is planning to introduce new taxes on telecommunications services and petroleum products.

The clarification came following media reports based on the recent International Monetary Fund (IMF) Article IV Consultation Report on Nigeria. The reports suggested that the IMF recommended extending Value Added Tax (VAT) to fuel products and introducing excise duties on telecommunications services as part of efforts to boost government revenue and fund development projects and social programmes.

However, in a statement issued on Wednesday by the Head of Information and Public Relations Unit of the Federal Ministry of Finance, Efe Ovuakporie, the government said the reports were misleading and did not reflect its current policy position.

According to the ministry, the IMF report merely contains the Fund’s assessment of Nigeria’s economy and recommendations for consideration by government authorities. It stressed that such recommendations are not binding and do not automatically become government policy.

The statement explained that all decisions relating to taxation in Nigeria are made through established constitutional and legislative processes and are guided by the country’s economic priorities and prevailing realities.

The Federal Government also clarified that the existing VAT waiver on petroleum products remains in force and has not been withdrawn.

It further explained that although current legislation provides for a fuel surcharge, such a charge can only be implemented through a ministerial order and official publication in the government gazette. The ministry stated that no such process is currently being considered.

According to the government, the continued suspension of these charges has helped reduce the impact of fluctuations in global energy prices on households and businesses while keeping domestic fuel prices relatively stable.

On telecommunications services, the government noted that the excise duty introduced before 2023 has already been repealed under the new tax laws and is no longer applicable.

The ministry therefore urged Nigerians to disregard reports suggesting that fresh taxes are being planned for either the telecommunications or petroleum sectors, describing such claims as inaccurate.

The government reiterated its commitment to economic reforms aimed at promoting growth, improving revenue collection, and creating a more attractive environment for investment and job creation.

It added that its focus remains on expanding economic activities, blocking revenue leakages, and improving efficiency in public finance management rather than imposing additional tax burdens on citizens.

The statement assured Nigerians that any future tax measures, if necessary, would be officially announced through appropriate government channels and implemented strictly in accordance with the law.

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NERC Orders DisCos to Compensate Band A Customers for Power Supply Shortfalls

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The Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies (DisCos) to compensate eligible Band A customers affected by power supply shortfalls recorded between February and March 2026.

In a public notice issued on Wednesday, the commission said the special compensation scheme became necessary following significant electricity generation deficits across the Nigerian Electricity Supply Industry (NESI), which prevented some DisCos from meeting the minimum service commitments required for Band A customers.

According to NERC, the supply disruptions were largely caused by inadequate gas supply as well as vandalism of critical gas and transmission infrastructure, factors beyond the direct control of the distribution companies.

The regulator explained that Band A customers are entitled to a minimum of 20 hours of electricity supply daily. It noted that where a Band A feeder recorded an average daily supply of between 18 and 20 hours during the affected period, the existing compensation framework under Addendum No. NERC/2024/003 would continue to apply to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.

However, NERC stated that Band A feeders that received less than 18 hours of electricity supply per day between February and March 2026 would not be downgraded despite failing to meet the service threshold. Instead, customers connected to such feeders would receive special compensation.

Under the approved arrangement, Non-MD customers will receive compensation equivalent to 20 percent of the approved February 2026 energy cap applicable to their feeder. MD customers, on the other hand, will receive compensation equivalent to 20 percent of the average energy billed per MD customer in February 2026.

The commission further directed that prepaid customers should receive their compensation through electricity token credits, while postpaid customers should benefit through direct bill adjustments.

To ensure transparency, NERC instructed DisCos to clearly communicate the value and period of the compensation to affected customers. The regulator also prohibited distribution companies from using the compensation credits to offset any existing customer debts.

Reaffirming its commitment to consumer protection, NERC said it would closely monitor the implementation of the directive and verify compliance across all distribution companies to ensure that eligible customers receive the compensation due to them.

The commission added that the measure is aimed at safeguarding consumer interests while maintaining the stability and sustainability of Nigeria’s electricity market.

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