On Monday, the House of Representatives Committed to retrieving over $9 billion in Fines Imposed by the Federal Government on Local and Foreign Companies Operating in the Oil and Gas Industry for Gas Flaring.
This assurance was given by Hon. Ahmed Munir, the Chairman of the Ad-hoc Committee Investigating Gas Flaring, during a Post-Investigative hearing briefing in Abuja.
Various Stakeholders from the Federal Ministry of Environment, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), and the National Oil Spill Detection and Response Agency (NOSDRA) were present at the Meeting.
Hon. Munir expressed concern about the level of Impunity Exhibited by the Operators and emphasized that the 10th Assembly would take decisive Actions to recover all Unpaid levies and ensure Compliance with existing Laws and Regulations.
He stated, “Rest assured, we will not be Passive about this Issue.
There are two aspects to address: Firstly, the Outstanding Penalties of Approximately $9 billion or thereabouts that have not been paid; we know how to Recover them.
Secondly, we need to Establish a way to bring Gas Flaring down to Zero in the Future and set Appropriate Penalties in place.”
He also highlighted the Significance of the recently enacted Petroleum Industry Act (PIA) and Discussed the need to Implement it effectively, addressing any Potential loopholes and Amendments required.
Hon. Munir further Discussed the Importance of meeting specific Criteria, such as the Gas master plan, for Companies bidding for Oil Blocs in Nigeria.
He emphasized the Necessity for a Mechanism that Enforces Compliance with these Requirements, similar to how Contractors need to Present various Certificates like FIRS, BPP, or BPE for Successful Bids.
Mr. Patrick Mgbebu, the Chairman of the RMAFC Gas Monitoring Committee, provided Insights into the Gas Flare penalty payment regime, revealing the amounts Involved and the Discrepancy in Gas Flaring data between NOSDRA and NUPRC, which led to the Shortchanging of the Federation Account.
Mr. Olubunmi Olusanya from the Federal Ministry of Environment stressed the Importance of giving Legislative backing to the use of Oil Trackers as a Benchmark for Sanctioning Companies involved in Gas Flaring.
This would ensure that the Penalties Imposed are Commensurate with the Extent of Flaring and Encourage Companies to Explore Alternative uses for the Gas they currently Flare.
Speaker Tajudeen Abbas, Represented by Hon. Usman Kumo, highlighted the Environmental, Economic, health, and Social Concerns caused by Gas Flaring.
He emphasized that Gas Flaring wastes Valuable Resources and leads to Substantial Economic losses for the Nation.
Furthermore, it poses Health hazards to nearby Communities and Contributes to Climate change and Environmental Degradation.
In conclusion, the Meeting brought together various stakeholders to address the pressing issue of Gas Flaring in the Oil and Gas Companies Industry and laid out plans to recover Outstanding Fines and Implement measures to reduce Flaring Effectively.
