Enageed Resources Limited, a Sahara Group Company, has inaugurated the Host Communities Development Trust (HCDT) Board to foster enhanced collaboration, sustainable impact, and overall well-being of all communities within the Oil Mining Licence (OML) 148 asset.
This is in compliance with provisions of the Petroleum Industry Act (PIA). The formal inauguration took place in Benin City, Edo State. According to the Act, companies are expected to contribute 3% of their Operating Expenses (OPEX) into the Host Communities Development Fund to drive socio-economic development across different parameters. The funds so contributed are to be managed by the HCDT.
Speaking at the inauguration, Yaro Aminu, representing Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), said the commission had developed robust implementation strategies for the Trusts to address restiveness among the host communities.
Aminu added that successful implementation would guarantee seamless operations of the Exploration and Production Companies while also providing an enabling environment for the sustainable development of the Country’s hydrocarbon resources.
“The Commission would also like to draw attention to the members of the Board of Trustees to the provision of Section 257 (2) & (3) as it refers to vandalism, sabotage and civil disobedience and the associated deductions from the accrued 3% that may arise therefrom and the need to stem the negative tide and foster prosperity in our various host communities,” he said.
According to Umar Mohammed, who represented Bala Wunti, the Chief Upstream Investment Officer, NUIMS, the HCDT as established under the Petroleum Industry Act (PIA) 2021, reflects the Government’s commitment to ensuring operations benefit the Host communities in tangible and long-lasting ways.
Mohammed noted that NNPC’s vision for social intervention underscores the need for companies to operate in an ethical and sustainable manner and deal with the environment and social impacts occasioned by their activities.
“To ensure transparency and accountability, the trust is set up to be managed by the Board of Trustees having representatives of the Host communities and a secretary from the settlor, all who are of high integrity and professional standing,” he added.
The Edo State Commissioner of Mining and Energy, Enaholo Ojiefoh, commended Enageed Resources for spearheading the setting up of the first HCDT is in Edo State, adding that this was characteristic of the commitment of Enageed’s parent company, the Sahara Group, to “robust, responsive, collaborative and sustainable community relations.”
To ensure transparency and accountability, the trust is set up to be managed by Board of Trustees having representatives of the Host communities and a secretary from the settlor, all who are of high integrity and professional standing.
Ojiefoh said the Edo State Government would continue to ensure the communities’ support to Enageed Resources.
Also speaking at the inauguration, Adaeze Aguele-Kalu, the Edo State Commissioner of Budget and Planning urged the communities to continue to show their unwavering support to the company and the Edo State Government will always have their backing.
The Head of Stakeholder and Community Relations, Babatomiwa Adesida, said: “We are confident that the Board of Trustees will further transform the impact of our collaboration with all stakeholders in the communities contributing and benefiting transparently and equitably.”
In his remarks, Alexander Orogun, the Chairman of the AJOAKOKAJIM Host Communities Trust, stated this is boldest and most laudable step of government to overhaul the Nigerian petroleum sector is the conceptualization through the legislation and subsequent implementation of the PIA which was signed into law on 21st August 2021.
Scott Omasan, the Ajoki Community Secretary, said the communities have looked forward to the Board Inauguration and thanked Enageed Resources for their continuous support towards the community.
The implementation of the PIA in the communities would ensure continuous sustainable development in the community and increase pipeline security in the communities.
