Page 63 - Nigeriaone mag 2 edition en

Agricultural farmlands are also affected in the process due to runoffs from crude oil deposit areas, thus
turning originally fertile soils into wastelands. The economic downturn of this is a reduction in crop yield
and productivity, thus affecting sales and subsequently the gross domestic product from agriculture. Gas
flaring is characterized by the release of harmful gas and particulates that may pose health threats to both
humans and animals. Over 250 toxins, which include polycyclic aromatic hydrocarbons (PAHs), hydrogen
sulfide, toluene, benzene, sulfur dioxide, nitrogen dioxides, xylene, etc., have been detected in fared gas;
some of which are responsible for acid rain, ozone depletion, global warming, cancer, and other harmful
effects (PAHs). Thus, the indiscriminate release of particulate matter and precursor gas around oil-
producing communities may call for concern.
The socioeconomic structure of many African countries has been altered, as a result of the operation of
crude oil exploration activities, resulting in a lack of accountability and less citizen participation. Despite the
economic benefits of crude oil discovery and exploration in Africa, oil exploration no doubt has far-reaching
adverse effects on environmental compartments; air, land, water as well as all living things on earth. The
host community expects that the immediate action should be taken to address the negative effects oil
exploration has on the local communities, and it is important that this clean-up be done speedily so that
these communities can begin to use their lands to plant crops and rear animals for local consumption. As
long as the land remains contaminated, the agricultural activities of the local indigene will not be possible.
To address the needs of the host community, the government led by President Buhari, has successfully
passed the Petroleum Industry Bill into law; a significant and laudable achievement considering the fact that
previous government such as the President Obasanjo, President Yaradua and President Jonathan made
several attempts to pass the bill but they all failed. It is a fact that previous attempts at passing the Petroleum
Industry Bill in 2009, 2012 and 2018 failed because of factors such as stiff opposition by the petroleum host
communities, misalignment of interests between the Executive and National Assembly, lack of ownership,
apparent erosion of ministerial powers, and disagreements with foreign investors on the seeming
uncompetitive provisions in previous versions of the bill.
The Bill had several provisions to address concerns of the host communities, especially some of those that
have been discussed earlier. For instance, the bill proposes to grant a 5% equity stake to host communities
and oil producing communities as well communities where oil is extracted and in which the facilities for
exploration and extraction of oil are conducted. These host communities, such as the Niger Delta region,
have suffered an elevated level of pollution due to oil exploration activities. The funds available are to be
allocated in this order, 75% goes to capital projects, 20% will serve as reserve, while 5% will cater for
administrative expenses.

It is expected that this Petroleum Industry Bill will
address some of the long lasting negligence of the
host communities, as funds allocated to the
communities will be used to address some of the
main issues the host communities have complained
about, such as environmental degradation, oil
pollution and some of the hazards caused by oil
mining. More importantly, the funds will be
channeled to meet the development needs of the
host communities such as basic infrastructure,
schools, hospitals, and road network. This is a
significant milestone achieved by the present
administration that will begin the process of
meeting the needs of the host communities.
Oil revenues fund education

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