28 October 2009
Sopuruchi Onwuka — Federal government may finally round off its peace moves in the Niger Delta by ceding 10 percent interest in joint venture firms which are to be incorporated to the Niger Delta communities.
The proposal which is currently in the National Assembly might also form part of the Petroleum Industry Bill that is being considered by the relevant committees in both houses of the bi-cameral legislature.
Under President Umaru Yar'Adua's peace initiative, Niger Delta communities would be given a 10 percent stake in NNPC's share of the ventures.
Residents would receive this through cash benefits delivered through a trust-style mechanism which they could use individually or pool for social projects.
Officials believe the community stakes could be worth more than 50 billion naira ($338 million) in the first year, the paper said.
A member of the National Assembly said the legislature was looking at a plan to give a share of the country's energy wealth to people in the Niger Delta in a move to end a violent campaign by militants who say the poor are missing out on its riches.
A senior lawmaker told agency sources that President Umaru Yar'Adua has asked National Assembly to approve the allocation of 10 percent of Nigeria's oil and gas joint ventures operated by multinational oil firms to Niger Delta communities.
The equity stake is aimed at providing hundreds of millions of dollars each year to develop the impoverished region.
The senator, who asked not be identified, confirmed a report that national Assembly was considering adding the initiative to an oil reform bill.
"Yes, we are considering equity participation in the oil industry by the host communities," the senator said.
"Actually this is what the president told the governors and other stakeholders from the Niger Delta in a meeting last week."
NNPC now controls Nigeria's majority share in joint ventures with international oil companies, including Royal Dutch Shell, Chevron and ExxonMobil.
Activists said it was critical the government implement measures to ensure these benefits reach residents and are not misused by local politicians in one of the world's most corrupt countries
"First and foremost, any money must be given to a community trust and not to any party or politician. This is a commendable step, but we want more," said Patrick Naagbartan, coordinator for the Centre for Environment, Human Rights and Development in Rivers state.
Antony Goldman, head of London-based risk analysis PM Consulting, said the initiative could be very difficult to implement due to technical issues in deciding which communities would benefit and how much would each receive.
Yar'Adua's promise to develop the Niger Delta prompted militant leaders, who say they are fighting for a fairer share of the region's wealth, to surrender their weapons in return for his unconditional pardon.
Pipeline bombings, attacks on stations and kidnapping of workers have forced domestic and foreign firms to evacuate staff and prevented OPEC-member Nigeria from pumping much above 2 million barrels per day of oil, just two thirds of its installed capacity.
The lull in violence over the past three months has raised the possibility that oil and gas production could soon return to normal levels. But activists say violence could return to the Delta if the government fails to follow through on its promises.
The Movement for the Emancipation of the Niger Delta lifted its three-month old ceasefire last week and threatened to resume oil attacks.
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