…To respond to NASS on proposed 3% share of oil revenue to host communities, 30% share of profit for exploration of oil, gas in the basins at NEC

…Approves common template for  implementation of memorandum of action with JUSUN, PASAN

By Henry Umoru

Governors, under the aegis of Nigeria Governors Forum, NGF, yesterday  agreed to engage the Senate, the House of Representatives and the National Economic Council,  NEC,  on the recently passed Petroleum Industry Bill, PIB, especially on the three percent for the actual annual operating expenditure of the preceding financial year in the upstream petroleum operations for funding of  Host Communities Trust Fund.

The communique signed by NGF Chairman and Ekiti State governor, Dr Kayode Fayemi, read:  “We, members of NGF, at our meeting held today (yesterday), deliberated on issues of national importance and resolved as follows.  Executive Order #10 and Financial Autonomy for the State Legislature and Judiciary.

“The Forum has approved a common template for the implementation of the Memorandum of Action signed with Judiciary Staff Union of Nigeria, JUSUN and the Parliamentary Staff Association of Nigeria, PASAN, on the implementation of financial autonomy for the State legislature and judiciary. The template was developed following a meeting of the sState Attorneys General and Commissioners of Finance which held on June 15, 2021, at the directive of the Forum. 

 “On the Nigerian Postal Service Bill, 2021 & Stamp Duties Collection, the Forum expressed concern with certain proposed amendments to the Principal Stamp Duties Act by the Nigerian Senate which seeks to remove the powers to administer and collect stamp duties from the relevant tax authorities (Federal Inland Revenue Service or State Internal Revenue Service, depending on the nature of the transaction) to the Nigeria Postal Service. The provisions of Section 163 of the 1999 Constitution requires that Stamp Duties on transactions between a company and an individual should be paid to the FIRS and returned to the State of derivation.

“The Forum resolved to engage with the National Assembly on the matter.

“The PIB. The Forum is in full support of the unbundling and commercialization of the NNPC, but concerned with the proposed ownership structure of the NNPC which places ownership on the Federal Government.

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“The NGF recommends that given that the corporation is owned by the three tiers of government, the new incorporated entity (NNPC Limited) should be owned by a vehicle that holds the interest of the three tiers of government – for now, the institution that is positioned to carry out this mandate is the Nigeria Sovereign Investment Authority, NSIA.

“This amendment as well as the proposed three percent share of oil revenue to host communities and 30 percent share of profit for the exploration of oil and gas in the basins will be responded to at relevant channels including the National Assembly and NEC.

“Sale of Niger Delta Power Holding Company, NDPHC, Assets. The Forum will take a position on the planned privatization of assets of NDPHC, which were listed by the Bureau for Public Enterprise, BPE, without due consultation with state governments who are shareholders of the company. NDPHC is incorporated under the Companies and Allied Matters Act as a private limited liability company with shareholding fully subscribed to by the federal, state and local governments with a mandate to manage National Integrated Power Projects, NIPP, in the country.  

“Launch of the NGF Peace and Inclusive Security Initiative. The Forum put its weight behind the launch of its Peace and Inclusive Security Initiative, PISI, set up to tackle insecurity, conflicts and violence in the country. The launch of PISI which took place on July 8, 2021, heralded an important milestone for NGF as it seeks to build a more inclusive and collaborative platform to drive an urgent country-wide response to security challenges in the country.”

The governors at their 32nd teleconference meeting,  noted that they were  concerned with the proposed ownership structure of the NNPC which places ownership on the Federal Government, but  vowed to respond to  the proposed three percent share of oil revenue to host communities and 30 percent share of profit for the exploration of oil and gas in the basins  at all  relevant channels, including the National Assembly and NEC.

The governors also resolved to  engage the National Assembly on Nigerian Postal Service Bill, 2021 and Stamp Duties Collection.

On Updates and Presentations, the communique read, “the Chairman of the Forum, Fayemi informed members of the inauguration of the National Steering Committee, NSC, of the National Poverty Reduction and Growth Strategy, NPRGS, chaired by Vice President Yemi Osinbajo with a mandate to lift 100 million Nigerians out of poverty in ten years. State governors have been enjoined to nominate focal persons who will consolidate policy strategies put in place by State governments to end poverty in the country.”

The focal persons will be inducted into a technical working group chaired by the Governor of Nasarawa State, Abdullahi Sule and co-chaired by the Minister of State for Finance, Budget and National Planning, Prince Clem Agba.

 “The Forum received an update from the Governor of Lagos State, Babajide Sanwo-Olu on the recent rise in confirmed COVID-19 cases and call for consensual action to prevent a third wave in the country. Following the update, the Forum called on all State Governors to revive their COVID protocols and collaborate with the Nigeria Centre for Disease Control, NCDC, to take appropriate and immediate actions to flatten the transmission curve. The Forum will interface with the Presidential Steering Committee on COVID-19 to accelerate processes required to fast track the delivery of additional vaccines for the country.”