Oil firms’ debt to host communities rises despite PIA enactment
By Jeph Ajobaju, Chief Copy Editor
Oil firms’ debt to host communities has risen to about N800 billion nearly two years after the enactment of the Petroleum Industry Act (PIA), the Host Communities of Nigeria (HOSCON) has complained.
HOSCON said the debt arose from the lack of implementation of the 3 per cent host Communities’ Development Trust Fund prescribed by the PIA.
NOSCO National Chairman Mike Emuh said the failure of the government to commence full implementation of the trust fund has delayed development in oil and pipeline impacted areas.
Emuh urged President Bola Tinubu to prioritise the development of oil and gas host communities as part of measures to tackle the marginalisation of the Niger Delta.
He argued it is wrong to continue to pay 13 per cent derivation to Governors which should be paid directly to oil host communities.
“The PIA made it very clear that 3 per cent of the capital expenditure of the companies operating in the petroleum industry in a year should be given to the host communities. This is the 3 per cent host community trust fund,” Emuh explained.
“By next month [July], it will be two years that the PIA was created, we have not seen the implementation of the 3 per cent trust fund.
“Last year alone, the fund was over N400 billion. This year we have another N400 billion. So over N800 billion to be paid to host communities in line with the PIA is now outstanding.”
__________________________________________________________________
Related articles:
Tinubu discovers treasury lost $46b to oil theft, $57b to subsidy
TUC says Nigeria doesn’t verify daily oil output
Nigerian elite steal $46.16b crude oil in 7 years
__________________________________________________________________
13% derivative fund should be paid to host communities, not state governments
“[HOSCON is] concerned about the delay in the payment of the 3 per cent PIA. Since the implementation of the new law is in motion, there should be no further delay in the payment. So the non-implementation of this provision in the PIA is an issue,” Emuh added, per Vanguard reporting.
“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.
“Furthermore, pipeline surveillance and related infrastructure should also be domesticated and in care of the host communities as articulated by the United Nations and the PIA”.
Emuh said if given the opportunity, HOSCON will expose the cabal behind the huge theft of oil and pipeline vandalism in the Niger Delta.
“No empty vessel comes into Nigerian waters without the knowledge of the federal government and the host communities and there is no ‘pregnant’ vessel that leaves Nigerian shores without the knowledge of the federal government and the host communities.
“The host communities know the cabal behind oil theft and we are ready to expose them if Mr. President gives [us] the chance to expose them.”
,){kind=link}