The Senate passed the Petroleum Industry Bill and approved that three per cent of profit made by oil firms should be shared to host communities.
The upper chamber passed the PIB, 2021 after the clause by clause consideration of the report of its joint committee on Petroleum (Upstream, Downstream and Gas) on PIB.
Lawmakers from the South-South geopolitical zone however protested against the three per cent approved for the host communities and called for five per cent.
The Senate had before then held a closed session with the Minister of State for Petroleum, Timipre Sylva, and the Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari.
The Senate also approved that 30 per cent of profits accruing from oil and gas operations by the Nigeria National Petroleum Corporation would be set aside for exploration of oil in the frontier basin.
The proposed law stipulated that all exploration of frontier basins would fall under the purview of the Upstream Regulatory Commission.
It also clarified that the three per cent from the oil firm’s profits would be reserved for the development of host communities.