The House of Representatives has stepped down the controversial Petroleum Industry Bill after a rowdy closed-door session.
Further deliberation is expected to hold over the decision while the House is on recess.
The report was earlier scheduled for presentation, but was stepped down over row over the percentage of royalty due to host communities, from oil companies.
Earlier in the day, lawmakers from the South-South had opposed the harmonised PIB allocation to host communities which was pegged at three per cent.
The lawmakers were heard chanting “five per cent” as against the three pre cent at the floor of the House.
The report was on the Conference Committee on a Bill for an Act to provide legal governance, regulatory and fiscal framework for the Nigerian Petroleum Industry and the Development of Host Communities.
Following the row, the House hurriedly dissolved into an executive session to iron out some grey areas on the PIB that was deemed unacceptable to some lawmakers.
The lawmakers therefore engaged in a shouting match before commencement of plenary to consider the Electoral Act Amendment Bill and the conference report on PIB Bill.
The host community allocation was one of the clauses left in consideration after the National Assembly passed the PIB earlier this month.
The PIB is expected to transform Nigeria’s oil industry.
The three per cent is different from the 13 per cent derivation fund which is paid to oil-producing communities from the federation account.
Instead, the three percent allocation will come from an entity’s actual yearly operating expenditure of the preceding financial year in the upstream, midstream and downstream sectors.
All contributions will be deposited in a trust fund for host communities.
According to a draft of the PIB, the trust fund will enhance peace and cordial relationship between oil companies and host communities
