Oil Region Development Boosted: 172 Host Community Trusts Active as NUPRC Enforces 3% Levy
CHIGOZIE AMADI
The Nigerian Upstream Petroleum Regulatory Commission says oil and gas operators have so far established 172 Host Communities Development Trusts.
Under the Petroleum Industry Act, companies are required to remit 3% of their operational spending from the previous financial year into a Host Communities Trust Fund meant to benefit host areas.
Speaking during a meeting with the leadership of the Revenue Mobilisation Allocation and Fiscal Commission in Abuja, NUPRC’s Mrs. Oritsemeyiwa Eyesan said the Commission has been pushing enforcement of the PIA, with special focus on provisions for host communities and the duties of operating firms.
“We have laid out procedures for doing things and we have put regulations in place to streamline the process. So far, we have registered 172 HCDTs and we have been able to manage contributions by settlors,” she stated.
In a press statement issued by Eniola Akinkuotu,Head, Media and Corporate Communications,Eyesan explained that the trusts have financed the building of schools, hospitals and other projects, and that this has gone a long way in restoring peace and stability in areas that were once prone to unrest.
She added that the improved calm has also helped drive up oil output.
She acknowledged that a number of the trusts are currently facing court cases over disagreements on how their Boards of Trustees were constituted. The NUPRC, she said, is working diligently to ensure the trusts function effectively for the good of the nation.
According to her, the Commission’s Alternative Dispute Resolution Centre has also been instrumental in resolving some of the complaints.
While thanking RMAFC for its interest in host community matters, Eyesan noted that responsibility for supervising how the funds are administered lies solely with the NUPRC.
She further pledged that the Commission will look into the unresolved dispute between Sterling Oil Exploration and Energy Production Company, SEEPCO, and its host community in Anambra State.
In his remarks, RMAFC Chairman, Dr. Mohammed Bello Shehu, praised the NUPRC for driving reforms in the oil and gas industry that have contributed to rising production.
Shehu said RMAFC considers the upstream oil and gas sector critical because it provides a large portion of the revenue paid into the Federation Account.
He also thanked the NUPRC leadership for responding to RMAFC’s invitation and called for closer partnership between both agencies in the interest of Nigeria.
