Reps probe $14bn unpaid gas flaring penalties

By Joshua Egbodo

 

Abuja

House of Representatives has resolved to constitute an Ad hoc committee to investigate the alleged non-payment of gas flaring penalties by international oil companies(IOCs), leading to reported revenue loss of about $14 billion, between April 2008 and 2016

The House also urged relevant government agencies to undertake damage and post impact assessment of the gas flared environment, and direct the payment of compensation by the oil companies to affected communities

Th is was sequel to adoption of a motion on the matter, sponsored by Hon

Johnson Agbonayima, and six others, who argued that as flaring was harmful to the economy and the environment, as the gas flared contains toxic substances which cause respiratory diseases and air pollution

Agbonayima, who presented the motion on behalf of his colleagues, explained that available statistics showed that the quantity of gas flared in Nigeria exceeds over 40% of gas flared across Africa, which amounts to trillions of Naira that have been wasted over the years; “The consequences of gas flaring include destruction of farmlands, damaging of crops, contamination of the air and acid rains which, apart from corroding corrugated aluminum roofs, acidify the soil in the areas where gas flaring takes place

“The federal government, in a bid to discourage gas flaring and encourage the redirection of gas fl ared from waste to wealth, and also to save the environment and the lives of the people living in the gas flared environment, imposed a penalty of $35 per 1, 000 SCF of gas fl ared by oil Companies,” he said

He said, according to the Department of Petroleum Resources, the country lost $14298 billion in form of gas flaring penalties, which the IOCs had failed to pay, between April 2006 and October 2016

The committee is expected to turn in its report within eight weeks

 

 

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