The Host Communities of Nigeria producing oil and Gas (HOSTCOM) has clarified the involvement of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in the management of the Host Community Development Trust (HCDT) which has generated unnecessary agitation within the ranks of some misinformed entities who have resorted to issuing unwarranted threats in the media recently.
National President of HOSTCOM, Highness Dr Benjamin Style Tamaranebi (JP) said the involvement of the NUPRC is purely regulatory to ensure proper implementation to the benefit of all stakeholders and nothing more.
“It is necessary to state for the umpteenth time that the NUPRC is only involved in the execution of the HCDTs to the extant prescribed in the Petroleum Industry Act 2021 and the Regulations governing the implementation of the Trust which was approved by stakeholders and gazetted by the government.
“The Commission is not unaware of the antics of those who are not comfortable with the new regulations but would prefer the status quo for which host communities were short-changed to continue.
“It is in the light of this that we would like to make the following clarifications for the sake of the undiscerning members of the public.
“It is important, first and foremost to reiterate that the NUPRC is a regulatory body established by law to oversee the upstream petroleum sector, thus its primary objective is ensuring efficient and sustainable petroleum resource exploration and production in Nigeria. “This includes safeguarding the interests of all stakeholders, including the oil and gas host communities.
“Part of the functions of the NUPRC is to superintend and monitor the implementation of the Host Communities Development Trust as stipulated in Chapter 3 of the Petroleum Industry Act (PIA), 2021 and the Nigerian Upstream Petroleum Host Communities Regulation (NUPHCR), 2022. ”
Explaining further he said, Oil producing communities are expected to have a Board of Trustees (BoT) to superintend the HCDT as stated in section 240 through 244 of the PIA.
“It is imperative to apprise the public of the responsibilities of the respective incorporated trust which, amongst others, include the general management of the host community’s development trusts, disbursement of the capital fund (75% of the 3% annual OPEX) for the execution of host communities project and the appointment of fund managers to manage the reserve fund (20% of the 3% OPEX) as business venture (while 5% ot the 3% OPEX is for administrative cost).
“The reason for the attacks on the Commission is the introduction of the digital platform and implementation by OEM hostcomply, which has heated the operators and to end the sharp practices of the oil multinationals and their cohort.
“With this HOSTCOMPLY host communities are confident and safe with their 3 % Annual OPEX without blinking eyes.
“The PIA expressly situated administrative fees in the 5 percent of the 3 percent to situate with the settlors. What the commission did was digitizing end to end administration of the HOSTCOM provision through HOSTCOMPLY and directing operators and stakeholders to subscribe to usage for transparency and avoid human interference.
“The point must be made clear that the NUPRC is not a signatory to any of the HCDT accounts rather only the settlors and the BOTs of the Host communities are signatories to the trust accounts as provided in Regulation 23 (5d) of the NUPHCR of the Commission, which is to ensure effective monitoring of the implementation and operationalisation of the HCDT process.
“It is worth noting that since the enactment of the PIA 2021, the NUPRC has been working assiduously to ensure compliance by Settlors to the provisions of the law with the overall objective of fully operationalising the trusts for the sustainable prosperity of the host communities. “This effort by the Commission has led to the incorporation of over one hundred (110) HCDTs and funding the requisite accounts for about fifty (50).
“As the Mouth piece and Umbrella body we understand the imperativeness of safeguarding the HCDT funds for the full utilisation of the sustainable development and property of the host communities.
He callef on all stakeholders to cooporate and work with NUPRC to ensure that the host communities’ funds are efficiently and transparently managed for the benefit of the communities by working closely with the relevant leaders of the HCDT in driving positive change and development in the communities.
He commended the tireless, vibrant Commission Chief Executive Engr Gbenga Komolafe for his pragmatic style of leadership geared towards improving the social inclusion and further make attempt to increase production beyond OPEC quota by 2024 involving every critical stakeholders on board.
“We observed with keen interest how operators are doing everything possible to frustrate genuine efforts by sponsoring uninformed persons against seamless flow 3% annual OPEX.
“The Settlors or Operators are the major problems we have by failing to setup HCDTs and the mode of creating the trusts is another key problem where they supper imposing candidates of there cohort confusing the communities against the extant Law of PIA.
“Finally, we want to emphasise that HOSTCOM is not comfortable towards the unpresidented delay in implementation of PIA proper in our communities after over 2 years of enactment of the Act (law) for communities to enjoy the dividends of the annual 3% Opex developmentstrides.
“HOSTCOM call on the Commission to list and publish and treat defaulting Oil Companies as stated by PIA.
“We also call on Community’s leadership to conduct themselves not to be used by Oil multinationals drag matters to delay the implementation of the PIA rather work out there differences.
“HOSTCOM Leadership reiterated the complaint from Host communities in Andoni LGA HCDTs by Green Energy operations in OML11, SPDC in Khana, Gokana, Eleme LGAS in Rivers State while SPDC in EA Host Communities at Bayelsa in EKeremor LGA, how they have denied or left out up till now .
“During our engagement with various stakeholders across the Niger Delta oil-bearing communities we recorded numerous complaints against the settlors.
“Engr Gbenga Komolafe, FNSE and his team have done so well that from September 2023 today we have recorded over 130 HCDTS sported for registration and HOSTCOM restated its commitment to the sustainable development and empowerment of the communities.
“We remain dedicated to our mandate of ensuring peacefull co existence between settlors and communities for the interest of justice and fairness and we will continue to support the Commission for good regulations for the betterment of host communities for sustainable development and prosperity.”