Peter Uzoho
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed that 172 Host Communities Development Trusts (HCDTs) have been incorporated by oil and gas companies (settlors) so far.
Under the Petroleum Industry Act (PIA), oil and gas companies are mandated to contribute three per cent of their Operating Expenditure (OPEX) of the preceding financial year to a Host Commmunity Development Fund for the benefit of such communities.
Addressing the leadership of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja, Eyesan said the NUPRC has been enforcing the provisions of the PIA, especially those relating to host communities and the obligations of operating companies.
According to a statement by the commission’s Head of Media and Corporate Communications, Eniola Akinkuotu, Eyesan said: “We have laid out procedures for doing things and we have put regulations in place to streamline the process. So far, we have registered 172 HCDTs and we have been able to manage contributions by settlors,” the NUPRC boss stated.
Eyesan said the HCDT which had funded the construction of schools, hospitals and other infrastructure, had contributed significantly to peace and stability in hitherto volatile communities.
She said this had also led to an increase in production.
While admitting that some of the HCDTs have been the subject of litigation due to disagreements over the constitution of the Board of Trustees, Eyesan said the NUPRC had been working assiduously to ensure that they run smoothly in the interest of the country.
She noted the Commission’s Alternative Dispute Resolution Center had also played a pivotal role in addressing some of these grievances.
Eyesan, while appreciating the RMAFC for its interest host communities, noted that oversight on how the funds are managed remains the exclusive preserve of the NUPRC.
The NUPRC boss, however, promised to investigate the lingering disagreement between Sterling Oil Exploration and Energy Production Company (SEEPCO) and its host in Anambra State.
In his remarks, the Chairman of the RMAFC, Dr. Mohammed Bello Shehu, commended the NUPRC for overseeing reforms in the oil and gas sector that had contributed to the growth in production.
Shehu noted RMAFC regards the upstream oil and gas sector important because the sector accounts for a large volume of what goes into the Federation Account.
While thanking the leadership of the NUPRC for honouring the invitation of the RMAFC, Shehu called for a stronger collaboration between the two institutions in the interest of the country.