The House of Representatives on
Thursday said it would investigate the Minister of State for Petroleum
Resources, Dr. Ibe Kachikwu, over alleged irregularities in the ongoing oil and
gas lease renewal.
The lawmakers said it would also
probe the involvement of the Department of Petroleum Resources (DPR) on the
allegations, NAN reports.
This followed a motion by Rep
Chika Adamu (APC-Niger) at the plenary presided over by the Speaker, Mr. Yakubu
Dogara, in Abuja.
Moving the motion, Mr. Adamu
expressed worry that the Federal Ministry of Petroleum Resources and the DPR
were allegedly renewing leases of companies that had failed to pay royalties to
the government from oil and gas lifted.
The lawmaker, who represents
Shiroro/Rafi/Munya Federal Constituency, said this was in contravention of
extant laws.
“The House notes that the
Committee on Petroleum Resources Upstream, in December 2017, observed
irregularities in the ongoing renewal of oil and gas leases being undertaken by
the Honorable Minister of Petroleum Resources, Dr. Ibe Kachikwu, and the
Department of Petroleum Resources.
“It also notes that the
Honourable Minister of Petroleum Resources is allegedly granting illegal
discounts and rebates in the process of the ongoing renewal of leases.
“The House is aware that under
the provisions of extant laws, failure to pay royalties is a ground for
revocation of leases and a legal barrier to renewal of applicable leases.
“It is worried that the Federal
Ministry of Petroleum Resources and the Department of Petroleum Resources are
allegedly renewing leases of companies that have failed to pay royalties to the
government from oil and gas lifted by the said companies, which is in
contravention of the extant laws.
“The House is concerned that the
Ministry of Petroleum Resources and the Department of Petroleum Resources have
deliberately, willfully and brazenly flouted the subsisting legal framework and
due process mandated by extant laws for the renewal of leases,” he said.
According to him, the
irregularities being perpetrated by the ministry and DPR in the ongoing lease
renewal process were capable of denying government revenues in excess of $10
billon as a result of illegal discounts and rebates granted in the process of
lease renewal.
He argued that the DPR had
deliberately refused to provide the Committee on Petroleum Resources (Upstream)
with relevant information and data related to the ongoing lease renewal.
Adamu urged the House to
thoroughly investigate the ongoing lease renewal being undertaken by Kachikwu
and the DPR to ascertain the reasons for the anomalies observed.
He said this would help to
identify appropriate measures to deal with the anomalies through appropriate
legislative action.
When the motion was put on a
voice vote by Mr. Dogara, the lawmakers unanimously supported it.
The speaker, therefore, mandated
the Committee on Petroleum Resources (Upstream) to investigate the matter and
report back to the House within four weeks for further legislative action.
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