Delay in 3% funding hampers PIA implementation – HOSTCOM
Stakeholders of the Host Communities Producing Oil and Gas affirmed that the purported delay in releasing the yearly three per cent contribution from relevant oil firms to the Host Community Development Trust as mandated by the Petroleum Industry Act 2021, significantly obstructs the enactment of the crucial legislation.
They made their position known during a town hall meeting in Yenagoa, organised 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 drawn from host communities across the state, revealed that about 15 HCDT had been created in Bayelsa so far.
They claimed that despite the meagerness of the three per cent, there is a delay in the release of the funds to enable host communities to carry out development projects.
According to them, the non-implementation of the PIA is “killing host communities” as all the proceeds that used to accrue to the communities through the Global Memorandum of Understanding signed with oil companies had ceased 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 killing our people. After two and a half years since the PIA came into effect, host communities cannot initiate a simple project. Some communities, two years funds have been paid, they cannot access the funds for a particular project. Even to get an office with the funds is a problem.
“So we are looking at a way to ensure that this should not linger. When we come to the roundtable to discuss then it is a win-win situation; so that we can agree and say these are the principles, these are the rules and we should go by this. And everybody will abide by 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.
While insisting that the annual three per cent was inadequate and that 10 per cent was the acceptable minimum, they urged the NUPRC to intervene and compel the oil firms to stop the delay in the release of the withheld three per cent funds.
Addressing the participants, the Commission Chief Executive at the NUPRC, Gbenga Komolafe, said the commission had been working assiduously to ensure the implementation and operationalisation of the HCDT in line with the provisions of the PIA and the NUPHRC, 2022.
Komolafe represented by the Bayelsa State Coordinator of NUPRC, Bighoro Sylvester, said the commission had issued approval to incorporate over 113 HCDT while 100 HCDT had been fully incorporated with the Corporate Affairs Commission, among other achievements recorded in the operationalisation of the PIA.
In addition, he explained, “The Commission is working in collaboration with NIUMS to ensure the OPEX presented by Settlors are accurate and true representation of each HCDTS.
“To manage the reserve funds which is 20% of the 3% OPEX, the Commission has approved twenty-five competent fund managers to invest the funds for the HCDTS. Some of the incorporated HCDTS has already started the process of engaging some of these fund managers”
He assured the HOSTCOM members that the commission would do its best within the ambit of the provisions of the PIA and the NUPHCR to ensure smooth and speedy implementation and operationalisation of the HCDT while ensuring that all stakeholders were adequately carried along.
