The Politics of the Petroleum Industry Bill in Nigeria: The Petroleum Host Community Fund Perspective

Abstract

This study, ‘the politics of the Petroleum Industry Bill (PIB): the petroleum host community fund perspective', is conducted to examine the effectiveness or otherwise of the petroleum host community fund in ameliorating theincreasing incident of crises, agitations, militancy and the general state of insecurity in the Niger Delta which have made oil production difficult and the astronomical cost of maintaining security by the oil companies, particularly, in the face of rising opposition and intense politics against the inclusion of the petroleum host community fund in the PIB from the northern states governors' forum. To clearly demonstrate the central issue involved, an hypothesis was formulated in the null form, thus: there is no significant relationship between the ‘petroleum host community fund' as is provided in the 2012 PIB and the increasing incident of crises, militancy and a general state of insecurity in the petroleum host communities. To generate necessary data on the subject matter, the study adopted the secondary method of data collection and analysis from relevant literature in the field over a period of time. The data generated were subjected to qualitative analysis within the purview of Marxist/Leninist Dialectical/Materialist political economy which defines the nature of reality as being dynamic and conflictual, and maintains that ‘the proper resolution of economic conflict would put an end to political conflict ‘Findings from the study show that the hypothesis is not true. Therefore, the study concludes that the provision for the petroleum host community fund, as provided in the PIB, is a step in the right direction. For example, two strands of argument that have been among the major sources of agitations in the Niger Delta, i.e. ownership and participation have been, according to analysis, taken care of by the provision of petroleum host community fund. The PHCF has the capacity to enhance security in the Niger Delta, despite opposition from NSGF.