NUPRC: PIA Encourages Host Communities to Safeguard Oil Facilities, Installations against Disruption 

Amby Uneze in Owerri

The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) has advised oil host communities (HOSTCOM) to safeguard oil facilities and installations in their respective areas so as to benefit from the 3 per cent mapped out for the development of their areas.

The regulator agency also expressed concern over the continued illegal oil exploration by some indigenes of the host communities of oil producing areas in the South-east and South-south, noting that such disruptions to the operations and vandalism of oil company facilities may result in reductions in funding. 

Commission’s Chief Executive (CCE), Mrs. Oritsemeyiwa Eyesan while highlighting the challenges faced by her commission in disbursing funds to oil communities during a town hall meeting hosted by NUPRC in conjunction with Hostcom Project Management and Adversary konsult Ltd for host communities Development Board of Trustees (HCDTS) and Settlors, Imo/Abia State in Owerri, said the setback has reduced the level of funds for development of the areas.

Eyesan represented by Atama Daniel at the event recalled the incident at Abacheke, Mmahun in Ohaji/Egbema Local Government Area of Imo State where over two hundred people were burnt to death while exploring oil illegally in a bush.  

“This is a big challenge, if you go to Abacheke, Mmahun I remembered what happened sometime ago where over two hundred people died in a bush while exploring oil illegally, we have tried to stop them they always come back, the problems is in the community, they should try and talk to them, most of them now carry arms but that will not deter us we would continue to make sure this action stopped,” Atama said. 

While explaining the Chapter 3 of the Petroleum Industry Act (PIA) 2021, and its significance to the oil host communities, Atama said “Incorporation of Host Communities Development Trusts (HCDTs)/settlors are mandated to incorporate a HCDT for the benefit of host communities. The Trust will manage and oversee a 3 per cent annual contribution from the operating costs of oil companies for community development.

“The 3 per cent contribution is not a favour, but a legal provision to ensure host communities benefit directly from petroleum operations. Funds will be allocated to projects in education, healthcare, infrastructure, and economic empowerment as determined by the host communities.

“The Trust will be governed by credible members of the communities nominated as Board of Trustees, including other members of the communities set up as Management Committee and Advisory Committee. The Management and Advisory Committees will ensure transparency and accountability in funds utilisation.”

The Chairman of the HOSTCOM, Dr. Benjamin Tamaranebi, in his remarks at the occasion earlier advised the host communities to always embark on sustainable development projects rather than frivolous projects. 

He said funds disbursed to the communities are now higher than before and urge the communities to take good advantage of it. 

According to him, they can build schools and other sustainable projects, think of something that will be more economical in the community always, if this is done there would be economic activities and development. In order not to waste the funds, train your children with the funds, scholarship instead of buying vehicles or renting apartment in the city.

He called on the host communities to come together and eschew incidents that would bring acrimony and rancour in order to allow development of the areas to flourish.