Asaba—Delta State Governor, Ifeanyi Okowa, has declared that the 3% royalty allocated to host communities in the Petroleum Industry Act, PIA, is unsatisfactory to the people of Niger Delta, Punch newspaper reports.
Okowa made the declaration in Asaba on Tuesday during a stakeholders interactive forum organised as part of activities marking the 30th anniversary of the creation of the state.
According to him the passage of the PIA into law is a welcome development, but the 3% royalty allocated to host communities is not good enough.
He maintained that the 5% demanded by the oil-producing states would have been a fair deal.
His words: “On the Petroleum Industry Act 2021 as assented to by President Muhammadu Buhari, I commend the passage of the Bill but with reservations.
“We welcome the passage of the PIA, but I must say that the three percent allocated to host communities from the operating cost of the oil companies is unsatisfactory.
“We are convinced that the five percent demanded by our state and other oil-producing states is fair, just and equitable in view of the ecological and environmental degradation that the host communities are exposed to from oil exploration.”
Okowa also lauded the developmental journey of the state since its creation and expressed optimism in the future going forward.
“Thirty years ago, Delta State was born and given the prevailing political atmosphere at the time, its birth was, understandably, greeted with cautious optimism.
“Indeed, not a few were skeptical about the future of the new state, given its ethnic plurality and the initial feelings of disappointment among those who felt shortchanged in the process.
“But after 30 years of existence, it is gratifying to note that skepticism has given way to belief; despair has been replaced by confidence, and suspicion has succumbed to understanding and acceptance.
“I dare say that Deltans have come to live as one big, happy family and the state has continued to forge ahead in all indices of human, physical and economic development”, he said.
