NEC Mandates FG, States To Make Laws To Prohibit Bunkering

The National Economic Council on Thursday directed the Federal and State Governments to make specific laws criminalising bunkering and pipeline vandalism to save the nation from revenue loss.

The council made the decision at its meeting presided over by Vice President Namadi Sambo at the State House.

The council, which is the highest economic decision-making body for both Federal and State Governments, is presided over by the Vice President, with governors and the FCT Minister as members.

Other statutory members of the council are the Ministers of Finance, National Planning Commission, the Attorney-General of the Federation and the Minister of Justice and the Economic Adviser to the President.

Briefing State House correspondents after the meeting, Gov. Godswill Akpabio of Akwa Ibom said that the country was losing about one billion Dollars monthly to bunkering.

He said the illegal activities of oil vandals had resulted in the decline of oil production to about 2.4 million barrels per day.

“We are calling on the Federal Government to find a way to send a bill to the National Assembly that will bring very stringent sanctions against bunkerers.

“It is important to bring the issue of oil bunkering to an end and that can be done if a proper law is passed by the National Assembly criminalising it.

“At the same time, the laws will bring up very stringent sanctions, so that people will be deterred from engaging into it.”

Akpabio said that the council had also directed State Governments to establish laws to protect the environment.

The governor said that states should make ancillary laws on environment which would encompass sanctions on bunkering “because petroleum is in the exclusive list of the Federal Government’’.

He added that such laws should see bunkerers as damaging the environment and could be brought to book through the laws on the protection of the environment.

The governor said that the council concluded that the delay in the passage of the Petroleum Industry Bill (PIB) had stalled the investment in the petroleum sector.

He added that the council concluded that “if the bill is passed, it will boost oil production.

The council, he noted, advised that the Minister of Petroleum Resources, Mrs Diezani Allison-Madueke, should present a road map on the conclusion of the bill.

He said state governors were urged to assist the ministry in ensuring the passage of the bill.

The governor said the steps to be taken would enable President Goodluck Jonathan to present the bill as a matter of urgency to the National Assembly.

Akpabiosaid the council also considered a presentation made by the Minister of Finance, Dr Ngozi Okonjo-Iweala, on oil subsidy financing.

He said NEC emphasised the need to establish a reliable system for the tracking of the nation's oil exports and imports.

A committee was set up to assess the situation and come up with recommendations on how to establish a reliable system of accurate data generation on the oil imports and exports.

The committee, chaired by Okonjo-Iweala had some governors, Allison-Maduekwe, the CBN Governor and the Accountant-General of the Federation as members.

The Akwa Ibom governor said NEC had also resolved that funds from the Millennium Development Goals (MDGs) be shared equally by states and no more on applications by individual states.

He said the decision was reached to ensure equal access to the fund and to stop the hitherto system of application by states and discretional release of funds by the agency.

Akpabiosaid the council had decided that states should henceforth share 60 per cent of the MDGs fund, while the 40 per cent balance should go the Federal Government.

Hitherto, the Federal Government received 60 per cent, while states assess the balance of 40 per cent on basis of application.

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