The Centre for Human Rights and Anti-Corruption Crusade (CHURAC) has instituted an action at the Federal High Court in the Warri Judicial Division against the Attoney-General of the Federation and Minister of Justice, the President of the Senate and the Speaker of the House of Representatives.
The suit with No: FHC/WR/CS/43/2023, is seeking an order of the court to declare sections 257(2) and (3) of the Petroleum Industry Act, 2020 null and void for being inconsistent with the provisions of the 1999 Constitution of the Federal Republic of Nigeria.
The suit, which was filed by Otuaro & Otuaro Associates, also seeks the constitutionality of sections 9(4) and (5) and 240 of the Petroleum Industry Act, 2020 over the 30 per cent from the equity share for oil exploration at the frontier basin and the three per cent paltry sum from the actual operating expenditure of the settlors for the host communities development.
Chairman, Board of Trustees CHURAC, Mr Cleric Alaowei, made a brief statement of the facts thus:
“The Petroleum Industry Act 2021 (PIA) was enacted into law by the National Assembly and it was assented to by the President of the Federal Republic of Nigeria, President Muhammadu Buhari on the 16th day of September 2021.
“The Act provides for 3 per cent of the actual annual operating expenditure of the settlers for the development of the host communities.
“The Act also provides that if there is sabotage within the environment of any host community on oil facilities such host community will forfeit its host community benefits for that particular year to the extent of the damage as a result of such sabotage.
“The Act further provides for 30% of the Petroleum Profits Sharing for oil exploration at the frontier basin. The host communities which suffer environmental damages only benefit from 3% of operational cost.
“The host communities are also compelled to forfeit the benefits through an act of sabotage occurring in their environment without being tried by any court of competent jurisdiction to ascertain their guilt.”
Meanwhile, no date has been fixed for the hearing of the suit.
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