*Declare that 10th NASS will do everything within its powers to recover unpaid levies
*Regrets that oil, gas industries has outstanding fines amounting to $9bn
*Worries over level of impunity local, foreign operators violate gas flaring laws
*Calls for drastic measures in tackling issues of fine evasion by oil companies
By Aaron Ossai and Disun Amosun
The House of Representatives has said that it will collect every dime of the over $9 billion gas flaring fines imposed by the Federal Government on erring local and foreign companies operating in Nigeria’s Oil and Gas industry.
Chairman, Ad-hoc Committee investigating gas flaring, Rep. Ahmed Munir gave the assurance Monday in Abuja, during the post-investigative hearing briefing, attended by various stakeholders drawn from Federal Ministry of Environment, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), National Oil Spill Detection and Response Agency (NOSDRA), among others.
Rep. Munir said given the level of impunity with which operators, local and foreign, violate the country’s gas flaring laws; the 10th Assembly will do everything within its powers to ensure full recovery of all unpaid levies as well as compliance with extant legislations and regulations.
The Ad- hoc Committee Chairman identified the problem of accumulated unpaid fines as penalties amounting to about $9 billion needing rapid recovery and secondly reducing gas flaring and its resulting pollution to zero..
He stressed the need to check their activities through legislations and effective fines and other penalties the House through the committee will put in place.
Rep Kumo noted that Nigeria has proven gas reserves of 201 trillion standard cubic feet and unproven gas reserves of 600 trillion standard cubic feet, yet production of gas remains very low and unstable; he called for drastic measures toward in tackling the menace.
In his remarks, Director at Federal Ministry of Environment, Mr. Olubunmi Olusanya underscored the need to give legislative backing to the use of oil and gas trackers in sanitizing environmental challenges occasioned by gas flaring and oil spillage.
While delivering his keynote address, Speaker Tajudeen Abbas who was represented by the Chief Whip, Hon. Usman Kumo observed that gas flaring and venting has been a significant environmental, economic, health and social concern in our country for many years.
“Firstly, gas flaring represents a tremendous waste of valuable resources. Natural gas is a precious energy source that could be utilized for various purposes, such as electricity generation, heating, or industrial processes. By simply burning off this gas, we are squandering a valuable resource that could contribute to energy security and sustainability”, he said.
He noted that gas flaring has led to substantial economic losses and revenue decline for the nation as the flared gas represents lost revenue that could have been generated through its sale or utilization. Official records indicate that we lose about $2.5 billion annually to gas flaring.
In his presentation, NOSDRA Director General, Mr. Idris Musa, who earlier explained that the extant penalties on gas flaring are to serve as deterrent, however recommended that the penalties on gas flaring should be increased.
While stressing the need for improvement on the penalty application process and procedure of the application and collection, he also harped on the need to abolish the dichotomy of penalty administration.
According to him, total of 3.8 billion Mscf was flared between 2013 to date while total sum of $7.6 billion penalties are payable.
To this end, the lawmakers resolved to investigate the rationale behind $277,258,304.72 disparity in the gas flare penalties computed by NOSDRA and NUPRC.