Dr. Peter Medee, the Rivers State Commissioner for Energy and Natural Resources was a guest on a radio programme “Hard Facts” monitored by Port Harcourt Spectator where he barred his mind on issues surrounding the already passed Petroleum Industry Bill by the National Assembly.
Excerpts:
Question: On PIB , it appears we are gradually closing that chapter and moving on to enjoy the benefits that should accrue to the country and Niger Delta, however, it appears we are not hitting that solution because of the dust and controversy being raised. What do you think is the case?
Medee: It’s absolutely very unfortunate that we find ourselves in the kind of circumstances that ordinarily we wouldn’t envisaged at this very critical time because the PIB ordinarily would have been a very welcome development that would have been celebrated that at last the National Assembly have been able to pass it but what has come out didn’t show any serious commitment by legislators to be able to listen to the yearnings of the people that are concerned. Infact, I can tell you that what is being passed is like what was garbage-in to them and garbaged-out. I followed through the processes of the public hearing. I was part of the team that represented Rivers State and I made the presentation on behalf of Rivers State. Before then, we set up a crack team that did appropriate review of the bill and we came out with a position, not just a position of Rivers State. I was also able to coordinate all the commissioners of energy of the nine oil producing states. I coordinated all of them and we were able to come out with a common front. Unfortunately, what came out did not show representation, did not show any concern as if a public hearing was ever held and presentation was ever made. For example, 2.5 percent was proposed and all through the hearing, 10 percent was requested because even the 10 percent was what the previous version of the PIB presented and offered so we thought we were not asking for too much. Unfortunately, they came out with a 3 percent meaning that a 0.5 percent was given to us because 2.5 percent was already offered and we asked for 10 and at the end of the day what came out was 0.5 addition to 2.5 to give us 3 percent. Now when you look at that it’s even more annoying to say 3 percent of what? Is it 3 percent of equity participation or 3 percent of profit. Now let’s take equity participation. If we are looking at that, now who is in control of the structures of the trust fund who’s to manage the fund? Who is in charge of administration? Who appoints board members? Who oversees it? It’s still the oil companies and that’s a greater slap to the host communities because they don’t even have a right to nominate those who represent them on that board. So you can see how disastrous what is said to be passed is to us. Beside that, we also have what is called the pipeline security team where if there is rupture on the pipeline and it’s considered to be sabotage then the cost of repairs will be deducted from this 3 percent. Meaning that the host communities will now pay for that exercise. Now the question is who is in charge of the whole security in the country? Is it the host communities? Is it the host communities that appoint Inspector General of Police, commanders of all the armed forces? The same people. Now they fail to secure the pipelines and they asked the host communities to pay for it. You also look at what they call host communities in the bill. They are not just looking at it in terms of oil-bearing communities but rather pipeline communities. That is if pipeline passes your community then you’re a host community. That alone wouldn’t have been the problem but come to look at it, that means the pipelines moving from Port Harcourt to Kaduna can you see the number of communities it passes? By this bill now all those communities are now host communities and they are all to benefit from this 3 percent. When you look at that, by the time this three percent is collected and shared to all these communities which one will come to my community? Which one will come to my state? That’s the trouble we are beginning to face.
Question: There have been cases of pipeline explosion in communities where these pipelines passed through causing great havoc. Are you saying they shouldn’t be covered even though they suffer the impact?
Medee: If you listen to me very well, my concern is marginal rate. At what rate did they suffer? You are very conversant with the circumstances in the Niger Delta, can you compare that to what’s happening up North or West in terms of devastation? You can’t compare it. So relatively, you can see that this bill does not have any benefit for our people and I’m happy we did our presentation. I’m happy we provided that leadership, I’m happy we provided that voice. Unfortunately, that voice was not heard.
Question: There are other things the Niger Delta got like the 13 percent derivation, Ministry of Niger Delta Affairs, NDDC and others that other states and regions didn’t get?
Medee: Well, that’s even more annoying. Let’s take the Niger Delta Development Commission, NDDC, for example. You talk about the NDDC, who appoints board members? Is it nominated by the Niger Delta States or host communities? They are appointed from Abuja. He who pays the piper dictates the tune. You understand that. So the managing director of NDDC is loyal to who? Who are those who get the best contracts in NDDC? Who are the people that are abandoning projects? You talk about the ministry of Niger Delta, look at the East-West Road, what impacts? What project can you hold onto that this is what you have seen from the ministry of Niger Delta Affairs? The other day the North East Commission came up. Go and see what has been going on in a few years. Now thesame people are controlling the NDDC. How many northerners are on the board? How many southerners are on the North East Commission Board? So if you look at all these it’s even more annoying. Now you are talking of 13 percent derivation, look at Rivers State, you agree with me that the Governor is working. Assuming it was 50 percent, do you know how many of the projects we would have today in Rivers State? I can tell you for the past 60 days we have been on the road flagging -off and commissioning projects, where is the money? Even before these 13 percent comes, the governor already tie them to projects with irrevocable payment orders monthly. if with 13 percent we are doing these, assuming it was 50 percent what do you think would have happened? Let me ask you, what is the situation about solid mineral exploration in this same country? How many percent? 50 percent.
Question: Are you very certain about the 50 percent you just mentioned?
Medee: I’m very sure that reasonable percentage is offered but it’s not less than that. It’s a better deal where the people who own the solid minerals are not crying the way we are crying because they are benefitting better. Now look at the most annoying part of this bill. While they are giving us three percent, they are giving themselves 30 percent. That 30 percent of thesame profit will be set aside to go and search for oil somewhere that before my mother was born they have been looking for oil and they have not found then 3 percent will be given to where the oil is coming from.
Question: The 30 percent you talk of is not peculiar to the North alone but anywhere that oil reserves is suspected to be found?
Medee: Are you familiar with the oil sourcing processes? Already it has been known that there is oil in the Niger Delta so they don’t need 30 percent for these frontier enclaves in the Niger Delta. The money is for the frontier enclaves in the Chad Basin up North where they are suspecting there may be oil but they want to be sure whether it is there or not but here there is no suspicion.
Question: Is there suspicion that there maybe oil in other parts of the country except the North?
Medee: There maybe suspicion.
Question: Will this 30 percent cover trying to look for oil in the North and other parts of the country?
Medee: That’s what it is said to go for. What we are saying is that when oil was discovered in Niger Delta, was money diverted from the federation accounts?
Question: According To a 2020 report, Federal Government approved 13 percent derivation for revenue generated from mining which is a far cry from the 50 percent you earlier mentioned and also meant that they are getting same thing with Niger Delta States.
Medee: Well, when was that visit carried out? Before that visit, do you know what obtains before that visit and what is being implemented today? As we speak today, I can tell you that what obtains there is not what applies here. Go and look at the Solid Mining Act then you will know that what the minister was saying in that report is not what that is enacted and that is just a policy statement that we cannot just count on because whether you like it or not, no matter how tall the circular is, it’s not as important as a law.
Question: What is the minimum that the Niger Delta wants?
Medee: Well, we asked for ten percent and if we were given five we would have been able to say it’s considerate. Rather it should have been between ten and five percent being offered. We would have been able to see a situation whereby there is a lead course. The lead course is seven percent. If we had had seven percent then we would say that the people are considerate but in a situation whereby what was given to them is what they passed then it’s most unfortunate.
Question: What are the steps being taken to improve the industry here and reap some benefits for the state?
Medee: Well, I can tell you that we came into the ministry and inherited a ministry that we ought to add value to. Unfortunately, COVID-19 came and you know everything we do in the ministry of Energy and Natural Resources is on the exclusive legislative list of government. What that means is that the state has very limited role to play in the oil industry. All we try to do is to monitor and possibly support whatever policy that are in place and I can tell you for more than a year now we have done that and everybody can agree with us that in Rivers State we have never had long lines or fuel scarcity or scarcity of products, be it fuel, kerosene or diesel or gas. It doesn’t mean that crisis or problems does not exist. As I speak with you now we are currently talking of the leadership of the Petroleum Tanker Drivers who are declaring a strike and you know what that means. This has always been on from one issue to the other and we have managed the ministry till today and I can tell you that no matter the troubles and challenges that came in, today we have held the ministry to provide value for Rivers people in terms of lost of man hours. Before, we had a situation where you queue for hours before you get product. We have solved that. Also, as I speak with you today, we have seventeen kilometres pipelines containing about 50 metres cubic feet of gas conveying product all over the state and we have ensured that the supply of gas to this companies are prompt. You talk about the BUA Sugar Factory, the flour mills, PABOD breweries. I have ensured that the supply of gas to these private companies continue because if there is a shutdown then you begin to hear that Rivers people that are working in this outfits are laid off. Also, supply of these products is hindered and that affects the Gross Domestic Product of the state and the economy of the state. Also, as we speak today, we have been able to get waivers for fifteen modular refineries. We went to the National Council on Hydrocarbon and presented memo and we were granted because we look at the level of red-tapism and bottlenecks in securing approval for federal government agencies to build this outfits and so we made a case and got that approval. We also made a case for feed stock.
Question: Are these modular refineries going to be set up by the Rivers State Government?
Medee: They are not going to be set up by Rivers State Government because government is not always very good in business so we are looking at private investors to open the state. As we speak the ministry is collecting expression of interest as well as presentation from these private outfits that can build these modular refineries to be able to partner with the state government. The idea is that at these stage the government would not be able to do all these preliminary stages for the companies but we allowed each company to do their presentation, do their feasibility and then we will now be able to set up a relationship, either we do what is called Build Own and Transfer or Build Own and Operate. All these relationships we are looking at them. The idea is that government will be able to provide these waivers for these private companies that we are sure of and these documentations will be done for them and once it’s done for them, the refineries will be able to come up.
Question: Is there any timeline?
Medee: The timeline depends on the seriousness of the private investors. As I speak to you, we are open, we are expecting, we are receiving presentations from them. So the more and the serious they are, the more we would be able to see and transact business with them
Qiuestion: How many of such presentation have you received?
Medee: We have gotten about ten or fifteen but the idea is when they come we now tell them to go back and do their feasibility, by the time you do that come back to us but most of them are not coming back so we have very few now that are coming back to show that level of seriousness. So most of the things you hear are lip service.
Question: Those not returning, what challenges are they expressing?
Medee: Well, it could be funding because we are expecting those that have technical abilities as well as funding capacity because funding is key. For example, for you to do your feasibility, you need to pay like 50 thousand dollars to the Department of Petroleum Resources to get what we call licence to establish and it’s until you get the license you cannot be able to get licence to construct. These are what you need to get first and we are ready. DPR and federal government has given us that waiver that if we come with any company today they will be able to process those documents. So instead of the documents to stay six months you can get it under two weeks because there is a waiver on it.
