Nigeria

House committee assure full implementation of 13% derivation principle in revenue sharing

4. The House of Representatives yesterday, approved President Muhammadu Buhari’s request for ongoing external loans to the tune of $8,325,526,537 (USD) and €490,000,000 (Euros) under the 2018-2020 External Borrowing (Rolling) Plan.

The House of Representatives Committee on Host Communities has promised that it would ensure the full implementation of the 13 per cent derivation principle in revenue sharing for the oil-producing states.

The Chairman of the Committee, Hon. Dunamene Dekor, gave the assurance at an interactive and investigative meeting with the top management staff of the Greenville LNG Limited on the citing of the oil facilities.

Dekor also demanded all the approval documents from the relevant government agencies, the agreement documents and the financial statement for the execution of trains 1-3 of the Liquified Natural Gas project by the Greenville LNG Limited, the owners of the oil facilities.

They also directed the oil company to produce all the approval documents for the execution of the gas project from the Department of Petroleum Resources.

The committee also uncovered five out of 17 expatriate quotas given to the company by the Nigeria Immigration Service, querying if it had complied with the directives of the approving authorities.

He said: “We requested for some documents and we are calling on the management of Greenville to present them. We will ensure the full implementation of the 13 per cent derivation principle in revenue sharing and all other agreements.”

Responding, the Managing Director of the Greenville LNG Limited, Mr Joseph Oyadoyin, said there were only two lease agreements entered into by the company and its host communities.

Oyadoyin said it was only one out of the three train projects that had been completed by the company, adding that Phase 1 of the project was sited on 754 plots of land the company leased.

On the expatriate quota, Oyadoyin said that they had complied with the directives of the approving agency.

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