People from the Host Communities Producing Oil and Gas say that the supposed delay in giving the yearly three per cent contribution from relevant oil firms to the Host Community Development Trust as required by the Petroleum Industry Act 2021 is significantly blocking the enactment of the important legislation.
They expressed this during a town hall meeting in Yenagoa, organized by the Nigerian Upstream Petroleum Regulatory Commission in partnership with HOSTCOM Management and Advisory Konsult Ltd, alongside the Host Communities Development Board of Trustees and Settlors in Bayelsa State, on Tuesday.
The HOSTCOM stakeholders, who were chosen from host communities across the state, disclosed that about 15 HCDTs had been established in Bayelsa so far.
They stated that despite the small amount of the three per cent, there is a delay in the release of the funds to enable host communities to carry out development projects.
They said that because the PIA is not being implemented, the host communities are suffering as all the money that used to come to the communities through the Global Memorandum of Understanding signed with oil companies has stopped since the law took effect.
Speaking at the meeting, the national president of HOSTCOM, Benjamin Tamaran-Ebi, pointed out that more than two years after the PIA received presidential assent, host communities could not access their three per cent funds.
He said, “The delay in the implementation of the PIA is hurting our people. After two and a half years since the PIA came into effect, host communities cannot start a simple project. Some communities have received funds for two years, but they cannot use the funds for a specific project. It's even difficult to get an office with the funds.
“So we are looking at a way to ensure that this should not linger. When we come to the roundtable to discuss, it should be a win-win situation; so that we can agree on the principles and rules to follow. And everybody will stick to it and there will be prosperity. That’s why we are doing this town hall meeting.
“Recently, Oporoma community (In Bayelsa State) went and stopped Shell from operating in their platform and that has become an issue. Now, they (Shell) are calling everybody complaining that this community has stopped them from operation. Give them the money, allow them to use the money.
“The delay in release of funds is impeding the implementation of the PIA. This is a fact. If the funds are not released for the community to embark on projects, what do you expect the community to do? They are starved of funds and when they are starved, they are pushed to the wall. And when they are pushed to the wall, they go to the oil installations and shut them down. And we don’t want that to occur in our communities, in Bayelsa and other states.”
In their separate contributions, the representative of Yenagoa/Ogbia Host Communities Development Trust Fund, Zuwa Konugah; High Chief Idani George of Azagbene community, Ekeremor LGA and Praise Perekebina, from Kabeama in Sagbama LGA, among others, said that host communities were no longer comfortable with the delay in the PIA implementation.
They said the annual three per cent was not enough, and 10 per cent should be the minimum. They urged the NUPRC to step in and force the oil companies to stop holding back the three per cent funds.
Speaking to the attendees, the head of the NUPRC, Gbenga Komolafe, mentioned that the commission had been diligently working to implement the HCDT as specified in the PIA and the NUPHRC, 2022.
Bayelsa State Coordinator of NUPRC, Bighoro Sylvester, representing Komolafe, stated that the commission had given approval for over 113 HCDTs to be incorporated, with 100 fully registered with the Corporate Affairs Commission, among other achievements outlined in the implementation of the PIA.
Additionally, he clarified, “The Commission is collaborating with NIUMS to verify the OPEX presented by Settlors to ensure accuracy and truthful representation of each HCDTS.
“To oversee the reserve funds, which amount to 20% of the 3% OPEX, the Commission has authorized twenty-five capable fund managers to invest the funds for the HCDTS. Some of the incorporated HCDTS have already initiated the process of involving some of these fund managers”
He assured the HOSTCOM members that the commission would do its best within the framework of the PIA and the NUPHCR to ensure smooth and prompt implementation and operationalisation of the HCDT while ensuring that all stakeholders were adequately involved.
