PIA: NUPRC Incorporates 155 Trusts Across N’Delta

–         Host communities demand oil derivation share 

Blessing Ibunge in Port Harcourt 

As part of the implementation of the Petroleum Industry Act (PIA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it has incorporated 155 Host Community Development Trusts (HCDTs) across host communities in the Niger Delta.

The Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, disclosed this at a town hall engagement meeting with host communities’ development trusts and settlors in Rivers State, held at Voyage Hotel, Port Harcourt, at the weekend.

Represented by Success Ikpe, an Assistant Director in the commission, Eyesan also revealed that a digital reporting and monitoring system developed by the commission now helps to track host community development trusts’ activities to ensure compliance with PIA regulations.

“Since the implementation of the PIA, the NUPRC has facilitated: Incorporation of over 155 HCDTs across host communities, funding of over 79 HCDTs with the mandatory 3% OPEX contributions by Settlors, superintend the execution of about 663 ongoing projects by several HCDTs, improving infrastructure and livelihoods, developed and deployed HostComply, a digital reporting and monitoring portal that enables real-time tracking of trust activities, ensuring compliance and efficiency in the management of host community funds,” she said.

Eyesan however said despite the progress made in the domestication of the PIA provisions in host communities, the commission was still grappling with some challenges.

She said “Despite progress, some contending challenges include: Governance and accountability concerns in managing HCDT funds, delays in project execution due to bureaucratic hurdles, community grievances and stakeholder conflicts over representation and resource allocation.

To address these challenges, Eyesan said the following solutions are proposed: “Strengthening governance and transparency, full utilisation of the HostComply portal and adherence to accountability standards”, others

The Commission Chief Executive therefore charged all stakeholders to collectively work towards the success of the PIA implementation.

“The success of HCDTs requires collective commitment from all stakeholders -government, traditional rulers, oil companies, and the communities themselves. The NUPRC remains dedicated to regulatory oversight, policy support, and technical assistance to ensure host communities thrive alongside the petroleum industry.

Let us seize this opportunity to turn challenges into opportunities and drive sustainable, inclusive development in the Niger Delta”, Eyesan added.

Meanwhile the country’s president, Host Communities of Nigeria producing oil and gas, Dr. Benjamin Tamaranebi, called on state governors to remit to host part of the 13% oil derivation fund received monthly from the federal government.

Speaking at the meeting with the Nigerian Upstream Petroleum Regulatory Commission, the host communities’ national president decried what he called the politicisation of the 13% oil derivation fund by state governments.

“Remember we have 13% derivation funds coming to the communities. That fund was not left for only the state governments, but for the development of host communities. 

“The government has politicised the fund without recourse to the real host communities that produce oil and gas. That was the core reason why we started out to fight. Remember through our fight we have the NDDC, through our fight amnesty came on board for our youths.

“Now we are looking forward for the state governments to do the same on the 13% derivation. The 13% derivation is key and paramount to the lives of host communities. Now that the PIA is on board, we call on the state governments to respectfully release part of the 13% derivation to the Trust to complement the Trust so that we can work together,” he said.

Dr. Tamaranebi disclosed that NUPRC, had established a dispute resolutions centre in Yenagoa, Bayelsa State, and called on communities with grievances, including those with oil companies to make use of the Centre. but regretted that some members of the HCDT are demanding to spend beyond the statutory 5% administration fund.

 “The Act made provision that 75% of the funds should go to community development projects, 20% for investments while 5% is for administration cost but most committees want to go beyond the 5%. If we continue to tamper with the 75%, we deprive ourselves of that development,” he said 

In his remarks, Permanent Secretary in the Rivers State Ministry of Energy and Natural Resources, James Ugochindu, commended the NUPRC and Hostcom Projects Management and Advisory Konsult Ltd for organising the program.

Represented by Sokariba Igwe, Ugochindu noted that the initiative aligns with state government’s distribution of even development to all communities.