OIL MINERAL PRODUCING AREAS DEVELOPMENT COMMISSION ACT 1998

OIL MINERAL PRODUCING AREAS DEVELOPMENT COMMISSION ACT

1998

9TH NOVEMBER,1998 THE FEDERAL MILITARY GOVERNMENT hereby decrees as follows:-

 

1. (1) There is hereby established a body to be known as the Oil Mineral Producing Areas Development Commission (in this Act referred to as “the Commission”).

(2) The Commission –

(a) shall be a body corporate with perpetual succession and a common seal;

(b) may sue and be sued in its corporate name.

(3) The Commission shall have its head office in Port Harcourt, Rivers State and shall maintain an office in the Federal Capital Territory, Abuja.

Establishment of the Oil Mineral Producing Areas Development Commission, etc.
2. (1) There is hereby established for the Commission a Governing Board (in this Act referred to as “the Board”), which shall consist of –

(a) a Chairman;

(b) one member each to represent each of the following oil mineral producing States, that is – (i) Delta State, (ii) Rivers State, (iii) Bayelsa State, (iv) Akwa Ibom State, (v) lmo State, (vi) Edo State, (vii) Ondo State, (viii) Abia State, and (ix) Cross River;

(c) two persons to represent non-oil mineral producing States;

(d) the Executive Secretary of the Commission;

(e) one person to represent the Presidency;

(f) one person to represent the Federal Ministry of Finance;

(g) one person to represent the Ministry of Petroleum Resources;

(h) one person to represent the National Planning Commission; and

(i) one person to represent the Defence Headquarters.

(2) The Chairman and other members of the Board shall-

(a) other than those mentioned in paragraphs (e) to (i) of subsection (1) of this section, be appointed by the President; and

(b) be persons of proven integrity and ability.

(3) The Chairman and members of the Board shall be part-time members.

(4) The supplementary provisions set out in the Schedule to this Act shall have effect with respect to the proceedings of the Board and the other matters contained therein.

Establishment of the Governing Board of the Commission.
3. Subject to the provisions of section 4 of this Act, a member of the Board, other than an ex-officio member shall hold office –

(a) for a period of 4 years at the first instance and may be re-appointed for a further period of 4 years and no more; and

(b) on such terms and conditions as may be specified in his letter of appointment.

Tenure of office of Board members.
4. (1) Notwithstanding the provisions of section 3 of this Act, a person shall cease to hold office as a member of the Board if –

(a) he becomes bankrupt, suspends payment or compounds with his creditors; or

(b) he is convicted of a felony or any offence involving dishonesty or fraud; or

(c) he becomes of unsound mind or incapable of carrying out his duties; or

(d) he is guilty of a serious misconduct in relation to his duties; or

(e) in the case of a person possessed of professional qualifications, he is disqualified or suspended, other than at his own request, from practising his profession in any part of the world by an order of a competent authority made in respect of that member; or

(f) he resigns his appointment by a letter addressed to the President.

(2) If a member of the Board ceases to hold office for any reason whatsoever, before the expiration of the term for which he is appointed, another person representing the same interest as that member shall be appointed to the Board for the unexpired term.

(3) A member of the Board may be removed by the President if he is satisfied that it is not in the interest of the Commission or the interest of the public that the member continues in office.

Cessation of membership of the Board, etc.
5. There shall be paid to every member of the Board such allowances and expenses as the Federal Government may, from time to time, direct. Allowances of members
6. (1) The Commission shall –

(a) rehabilitate and develop the oil mineral producing areas;

(b) tackle ecological problems that arise from the exploration of oil mineral;

(c) determine and identify, in consultation with each oil mineral producing State, the actual oil mineral producing areas to be developed in the State and embark on the development of projects properly agreed on with the local communities of the oil mineral producing areas;

(d) consult with the relevant Federal and State Government authorities on the control and effective methods of tackling the problem of oil pollution and spillages;

(e) liaise with the various oil companies on matters of pollution control;

(f) obtain from the Nigerian National Petroleum Corporation the proper data of actual oil mineral production of each State, Local Government Area and community;

(g) consult with – (i) the Federal Government through the Office of the Chief of General Staff, (ii) the State Governments and Local Government Councils, and (iii) oil mineral producing communities, in regard to any project, service and other requirements relating to disbursement by the Commission from the fund established under section 13 of this Act;

(h) advise the Federal, State and Local Governments on all matters relating to disbursement by the Commission from the fund of the Commission;

(i) liaise with the oil producing companies regarding the proper number, location and other relevant data relating to the oil mineral producing areas;

(j) encourage the establishment of consultative committees at community, Local Government and State levels in the oil mineral producing areas; and

(k) perform such other functions which in the opinion of the Commission are required for the development of the oil mineral producing areas.

(2) The Commission shall not be subject to the direction, control or supervision of any other authority or person in the performance of its functions under this Act other than the President.

Functions and powers of the Commission.
7. The Board shall have power to –

(a) manage and superintend the affairs of the Commission;

(b) subject to the provisions of this Act, make, alter and revoke rules and regulations for carrying on the functions of the Commission; .

(c) fix terms and conditions of service, including remuneration of the employees of the Commission; and

(d) do such other things which in the opinion of the Board are necessary to ensure the efficient performance of the functions of the Commission.

Powers of the Board.
8. (1) The oil mineral producing States shall be grouped into the following zones –

(a) the Central Zone comprising Rivers, Bayelsa and Imo States, with its zonal office in Yenagoa, Bayelsa State;

(b) the Eastern Zone comprising Akwa Ibom, Abia and Cross River States, with its zonal office in Uyo, Akwa Ibom State;

(c) the Western Zone comprising Delta, Edo and Ondo States, with its zonal office in Benin City, Edo State;

(d) such other zones as may be established by the Commission with the approval of the President.

(2) A zonal office shall be headed by an officer of the Commission not below the rank of a Director who shall –

(a) be responsible to the Executive Secretary of the Commission;

(b) liaise and co-ordinate the activities of the Commission within the Zone;

(c) be the link between the Commission and the communities of the oil mineral producing areas; and

(d) perform such other duties as the Executive Secretary may, from time to time, assign to him.

Establishment of zones.
9. (1) There shall be established in the head office of the Commission, the following Directorates –

(a) the Directorate of Administration and Personnel Management;

(b) the Directorate of Community Development;

(c) the Directorate of Infrastructural Development;

(d) the Directorate of Environmental Protection; and

(e) the Directorate of Finance and Accounts.

(2) The Board may, with the approval of the President, increase the number of Directorates as it may deem necessary.

Establishment of Directorates.
10. (1) There shall be for the Commission, an Executive Secretary, who shall not be below the rank of a Permanent Secretary in the civil service of the Federation and shall be appointed by the President.

(2) The Executive Secretary shall be –

(a) the Chief Executive and accounting officer of the Commission;

(b) responsible for the day-to-day administration of the Commission.

(3) The Executive Secretary shall hold office –

(a) for a period of 5 years in the first instance and may be re-appointed for a further period of 5 years and no more; and

(b) on such terms and conditions as are specified in his letter of appointment.

Appointment of Executive Secretary.
11. (1) The Board shall appoint for the Commission such number of employees as may in the opinion of the Board be expedient and necessary for the proper and efficient performance of the functions of the Commission.

(2) The terms and conditions of service (including remuneration, allowances, benefits and pensions) of the employees of the Commission shall be as determined by the Board after consultation with the Federal Public Service Commission.

Appointment of other staff of the Commission.
12. (1) Service in the Commission shall be approved service for the purposes of the Pensions Act.

(2) The officers and other persons employed in the Commission shall be entitled to pensions, gratuities and other retirement benefits as are enjoyed by persons holding equivalent grades in the civil service of the Federation.

(3) Nothing in subsections (1) and (2) of this section shall prevent the appointment of a person to any office on terms which preclude the grant of pension and gratuity in respect of that office.

(4) For the purposes of the application of the provisions of the Pensions Act, any power exercisable thereunder by the Minister or other authority of the Government of the Federation, other than the power to make regulations under section 23 thereof, is hereby vested in and shall be exercisable by the Commission, and not by any other person or authority.

Service in the Commission to be pensionable.
13. (1) The Commission shall establish and maintain a fund from which shall be defrayed all expenditure incurred by the Commission.

(2) There shall be paid and credited to the fund established pursuant to subsection (1) of this section –

(a) any allocation to the Commission from the Federation Account;

(b) such moneys as may, from time to time, be granted or lent to the Commission by the Federal Government or a State Government or a Local Government Council;

(c) all moneys raised for the purposes of the Commission by way of gifts, loan, grants-in-aid, testamentary disposition or otherwise; and

(d) all other assets that may, from time to time, accrue to the Commission.

(3) The fund shall be managed in accordance with the rules made by the President, and without prejudice to the generality of the power to make rules under this subsection, the rules shall in particular contain provisions –

(a) specifying the manner in which the assets or the fund of the Commission are to be held, and regulating the making of payments into and out of the fund; and

(b) requiring the keeping of proper accounts and records for the purpose of the fund in such form as may be specified in the rules.

Fund of the Commission.
14. (1) The Commission shall apply the proceeds of the fund established pursuant to section 13 of this Act to:

(a) the cost of administration of the Commission;

(b) the payment of salaries, fees, remuneration, allowances, pensions and gratuities payable to the Board members and the employees of the Commission;

(c) the payment for all contracts including mobilisation, fluctuations, variations, legal fees and cost on contract administration;

(d) the payment for all purchases; and

(e) undertaking such other activities as are connected with all or any of the functions of the Commission under this Act.

Expenditure of the Commission.
15. (1) The Commission may accept gifts of land, money or other property on such terms and conditions, if any, as may be specified by the person or organisation making the gift.

(2) The Commission shall not accept any gift if the conditions attached by the person or organisation making the gift are inconsistent with the functions of the Commission under this Act.

Gifts to the Commission.
16. (1) The Commission shall have power to award contracts not exceeding the sum of N50 million for the performance of any of its functions under this Act.

(2) The Commission shall not award a contract exceeding the said sum of N50 million without the prior approval of the President.

Award of contract.
17. (1) The Commission may, with the consent of the President, borrow, on such terms and conditions as the Commission may determine, such sums of money as the Commission may require in the exercise of its functions under this Act.

(2) The Board shall not, without the approval of the President, borrow money which exceeds, at any time, the limit set by the President.

(3) Notwithstanding subsection (2) of this section, where the sum to be borrowed is in foreign currency, whether or not it exceeds the limit set by the President, the Board shall not borrow the sum without the prior approval of the President.

Power to borrow.
18. (1) The Board shall, not later than 30th September in each year, submit to the President an estimate of the expenditure and income of the Commission during the next succeeding year.

(2) The Board shall cause to be kept proper accounts of the Commission in respect of each year and proper records in relation thereto and shall cause the accounts to be audited not later than 6 months after the end of each year by auditors appointed from the list and in accordance with the guidelines supplied by the Auditor-General for the Federation.

Annual estimates and expenditure.
19. The Board shall prepare and submit to the President, not later than 30th June in each year, a report in such form as the President may direct on the activities of the Commission during the immediately preceding year, and shall include in the report a copy of the audited accounts of the Commission for that year and the auditor’s report thereon. Annual report.
20. (1) For the purposes of providing offices and premises necessary for the performance of its functions under this Act, the Commission may, subject to the Land Use Act –

(a) purchase or take on lease any interest in land, or other property; and

(b) construct offices and premises and equip and maintain same,

(2) The Commission may, subject to the Land Use Act, sell or lease out any office or premises held by it, which office or premises is no longer required for the performance of its functions under this Act.

Offices and premises of the Commission.
21. Subject to the provisions of this Act, the President may give to the Commission directives of a general nature or relating generally to matters of policy with regard to the performance by the Commission of its functions and it shall be the duty of the Commission to comply with the directives. Directives by the Head of State. Commander-in-Chief of the Armed Forces.
22. (1) The Oil Mineral Producing Areas Development Commission Decree 1992 is hereby repealed and accordingly the commission established under that Decree (in this section referred to as “the dissolved Commission”) is consequentially dissolved.

(2) By virtue of this Act, there shall be vested in the Commission immediately at the commencement of this Act, without further assurance, all assets, funds, resources and other movable and immovable property which immediately before the commencement of this Act were vested in the dissolved Commission.

(3) As from the date of commencement of this Act-

(a) all rights, interests, obligations and liabilities of the dissolved Commission existing before the commencement of this Act under any contract or instrument, or in law or in equity, shall by virtue of this Decree be assigned to and vested in the Commission;

(b) any contract or instrument as is mentioned in paragraph (a) of this subsection shall be of the same force and effect against or in favour of the Commission established by this Act and shall be enforceable as fully and effectively as if instead of the dissolved Commission, the Commission had been named therein or had been a party thereto;

(c) the Commission shall be subject to all the obligations and liabilities to which the dissolved Commission was subject immediately before the commencement of this Act and all other persons shall have the same rights, powers and remedies against the Commission as they had against the dissolved Commission immediately before the commencement of this Act.

(4) Any proceedings or cause of action pending or existing immediately before the commencement of this Act by or against the dissolved Commission in respect of any right, interest, obligation or liability of the dissolved Commission may be commenced or continued, as the case may be, and any determination of any court of law, tribunal or other authority or person may be enforced by or against the Commission to the same extent that the proceedings, cause of action or determination might have been continued, commenced or enforced by or against the dissolved Commission as if this Act had not been made.

(5) Notwithstanding the provisions of this Act but subject to such directions as may be issued by the Commission, a person who immediately before the commencement of this Act held office in the dissolved Commission shall be deemed to have been transferred to the Commission on terms and conditions not less favourable than those obtaining immediately before the commencement of this Act, and service in the dissolved Commission shall be deemed to be service in the Commission for purposes of pension.

(6) The President, if he thinks fit, may, within twelve months after the commencement of this Act, by order published in the Gazette, make additional transitional or saving provisions for the better carrying out of the objectives of this section.

Repeal of 1992 No 23, and saving provision, etc
23. The Commission may, with the approval of the President, make regulations, generally for the purposes of giving full effect to this Act. Regulations.
24. In this Act, unless the context otherwise requires- “Board” means the governing Board established for the Commission under section 2(1) of this Act; “Chairman” means the Chairman of the Board; “Commission” means the Oil Mineral Producing Areas Development Commission established by section 1 of this Act; “member” means a member of the Board and includes the Chairman; “oil mineral producing areas” means the oil mineral producing areas in the States specified in section 2(1)(b) of this Act. Interpretation
25. This Act may be cited as the Oil Mineral Producing Areas Development Commission Act 1998. Citation