The Senate and House of Representatives had passed the PIB on July 15 and 16 respectively with President Muhammadu Buhari signing the document a month after.
In the bill, three percent revenue was given to host communities in the Niger Delta, while a fund for the exploration of oil in frontier basins, mostly in northern states, received 30 percent. The development generated criticisms notably from the Southern Governors’ Forum and leaders of the South-South region, including a former minister, Edwin Clark.
But Rewane, who is the Managing Director of Financial Derivatives Company Limited, described the development as improper.
“I am not sure that it is fair for the oil-producing communities, who suffer – if you go there, compared to other parts of the country where they produce no oil and see the level of affluence, there are multi-dimensional theft and degradation in the host communities. It is rape and that is what is happening but an imperfect bill is better than no bill,” he said during an interview on Channels Television’s Politics Today on Monday,
“Finally, the big elephant in the room; the host communities and the three percent allocation. Is the three percent the ideal, optimal compensation for the host communities? I will say, ‘No’ because I come from there but at the same time, what is more, important for the oil communities is the transparency of the money that is spent and the impact it has rather than having a tea party.