The Host Communities of Nigeria Producing Oil and Gas have urged upward review of the three per cent statutory fee accruing to host communities.
According to HOSTCOM, the review has become necessary in view of the present economic realities.
The National President, HOSTCOM, Benjamin Tamaramiebi, made the call on Tuesday in Abuja while briefing journalists.
He said that the existing three per cent had become insignificant due to the prevalent economic realities.
A three per cent fee is an operating expenses or expenditure of the previous year being remitted to host communities by oil companies as stipulated in the Petroleum Industry Act (PIA) 2021.
Mr Tamaramiebi also appealed to the oil companies that had not complied with the HOSTCOM regulations to do so immediately to incorporate the Host Communities Development Trust Fund for maximal use.
“While we commend the implementation of the PIA 2021 that has started in some areas, there are many things and many communities that have to be taken care of.
“The above applies to the three per cent accruing to host communities. There is a need for the immediate upward review of the three per cent which is now very insignificant due to the prevalent economic realities.
“We give kudos to the Nigeria Upstream Petroleum Regulatory Commission for promulgating first the HOSTCOM Regulations, and today we are seeing the improvement in our production,’’ he said.
He said the three per cent provision that was given in 2021 was no longer a reality or dependable.
There is a need for the immediate upward review of the three per cent which is now very insignificant due to the prevalent economic realities.
Amendment of the PIA
According to him, they will engage the leadership of both chambers of the National Assembly and members to push for amendments of the PIA to address contentious areas and clauses.
Listing sections for amendment, he included Section 257, Subsection 2, that provided, “If there is vandalism or sabotage, the community will forfeit the actual cost of repair.
“While Section 52 says there should be a Midstream and Downstream Gas Infrastructure Fund.
“In Section 52, Subsection 7 (d) and Section 104, Subsection 4, it says that money received from gas flare penalties by the Commission shall be for environmental remediation and relief of the host communities of the settlors on which the penalties are levied.
“Gas flare funds shall be channelled to the Trust Fund Account set up by settlors to avoid crises and other notable sections of the PIA 2021 Act,” he said.
The HOSTCOM president also condemned the call for the deployment and possible sack of Heineken Lokpobiri, the Minister of State for Petroleum Resources for incompetence and other spurious allegations. (NAN)
