Members of the Host Communities of Nigeria (HOSTCON) are seeking the intervention of President Bola Ahmed Tinubu on the payment of N800 billion three per cent of the operating share accruing from the implementation of the Petroleum Industry Act (PIA).
The PIA Act stipulates that three per cent of companies’ budget should be set aside and remitted to the communities where the companies operate.
HOSTCON’s Executive National Chairman, Dr. Mike Emuh, who made the request at a press conference in Abuja yesterday, recalled that the PIA came into force nearly two years ago.
He said the N800 billion covers the remittances that were not made for last year and this year.
According to Emuh, the issue of three per cent in the PIA, the law made it very clear that three per cent of the cost of production, the capital cost of oil company, the budget of any oil company in a year operating in Nigeria, three per cent of their budget cost be given to the host communities.
He said,
“And the law made it very clear as three per cent HOST Fund Commission. A commission is to be created. By next month it will be two years that PIA that was former PIB we agitated for it at the National Assembly and it metamorphosed from PIB to PIA.
“Next month will be two years we haven’t seen the implementation. Last year alone was over N400billion.
“By next month we will be having another over N400 billion. So, over N800 billion of three per cent commission to be paid to the host communities by settlor. Settlor is the oil companies operating in Nigeria to the trust fund commission of the host communities”.
He said the HOSTCON is already convening the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian National Petroleum Company Limited (NNPCL) to a meeting of the inauguration of the Host Community Commission.
According to him, nomination of candidates for the commission was underway.
According to him, the three per cent is the only option open to the HOSTCON because the oil companies have devised divisive measures for punishing the communities.
He noted that politicians have hijacked the 13 per cent derivation.
On the 13 per cent derivation, Emuh identified the governors in the oil-bearing as the beneficiaries of the fund and the host communities.
“Again, we are also concerned about the payment of the 13 per cent derivation fund to state governments instead of making the payment to the host communities as enunciated by the Presidential Implementation Committee on the PIA.” he said.
The HOSTCON chair urged the Federal Government to domesticate pipeline surveillance and related infrastructure in care of the host communities as articulated by the United Nations (UN) and the PIA.
He expressed commitment and support for the promotion of peace and well-being of the oil and gas bearing communities in Nigeria.
Expressing concern over oil theft and pipeline vandalism, he vowed to expose those behind the economic sabotage if given necessary security backup by the government.
He sought the creation of an enabling environment for the International Oil Companies (IOCs), Local Organizing Committees (LOCs) and Shell Petroleum Development Company (SPDC) to operate and enhance their operations.
He advocate the activation and promotion of modular refineries and gas plants.
