Host Communities decry deprivations of Development Trusts Funds by oil operators
NIGERIA, Oct. 30 – The Nigeria Oil and Gas Producing Host Communities under the name (HostCom), have laments decline and irreverence activities of oil and gas operators who short-change the communities and create division and confusion using divide-and-rule systems to sustain their operation and scatter their host.
The HostCom has also raised concern over inability of the operators to finalize the Host Communities Development Trusts funds (HCDT), created to cater for the concerns of the host communities and stop the activities of the Shylocks and their collaborators, The News Agency of Nigeria (NAN) reports.
The National President of HostCom, Dr Benjamin Tamaranebi, made this known at a news conference on Friday in Abuja.
The National President who refers to some operators as Settlors, which simply means, any holder of an interest in an Oil Prospecting Licence, an Oil Mining Lease, a Petroleum Prospecting Licence, or a Petroleum Mining Lease whose area of operations is in or appurtenant to any community or communities falling within the definition of host communities, expressed displeasure with what is currently going on between host communities and the Settlors.
“For over two years of the enactment of the Petroleum Industry Act (PIA) 2021, the settlors remain comfortable.
“Till date, only 76 Development Trusts have been registered, only 45 accounts created, only 38 accounts funded and more than 100 Development Trusts yet not registered with Corporate Affairs Commission (CAC).
“What an irony is this, and it was even after the pronouncement of NUPRC’s revocation of Licenses notice in September 2023 that prompted this number,” the national President lamented.
Biztv24 recalled that NUPRC had threatened to revoke the licenses of oil operators or Settlors who failed to remit the 3 % statutory fees provided by the petroleum industry Act to hostl communities before the end of September 2023, Read More.
The National President of HostComm, however stated that he was not surprised that they were fighting back, using every available means,not limited to trying to confuse the public but also trying to deceive everyone with concocted narratives, noting that it would not be swayed by their mischievousness.
He also noted that over the years players in the oil and gas industry had pumped millions of Naira in the Host communities before the advent of PIA 2021, but it could not see any meaningful projects initiated by these players rather the communities remained in a sorry state.
Tamaranebi said the HostComply which was put on the firing line by industry players was the ultimate to checkmate the activities of the settlors and HCDTs both their annual OPEX due for every Trust.
He said the setting up of HostComply was in furtherance to the provision of the PIA 2021, Chapter 3, section 235 (1).
This, he said, mandated that: “The settlor shall incorporate HCDT (in this Act referred to as “the trust”) for the benefit of the host communities for which the settlor is responsible”.
“Section 235(4) of the Act states: “The settlor shall, for the purpose of setting up the trust, in consultation with the host communities, appoint and authorise a board of trustees which shall be registered by the Corporate Affairs Commission as a corporate body under the Companies and Allied Matters Act”.
“The HostComply is meant to offer comfort to the HCDT by providing them with a robust technological tool to interface and engage with the settlors and manage projects in their respective communities professionally while meeting global best practices,” he said.
Tamaranebi expressed satisfaction over NUPRC’s effort as the regulator who have put everything in place so that the overall intentions of the PIA in this regard is effectively realized for the benefit of those envisaged.
All the Regulations enacted by NUPRC are in furtherance of the provisions of the PIA Act. All provisions of the Act in public, and can be attested to by relevant stakeholders that all regulations issued by the commission derive from stakeholder consultations.
He said, “They all passed through all necessary legal crucibles and were gazetted before inauguration for implementation.”