Oil & Energy
Host Comm.Development: NUPRC Commits To Enforce PIA 2021
The Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Mrs. Oritsemeyiwa Eyesan, has restated the commission’s commitment to ensuring oil companies comply with the Petroleum Industry Act (PIA) 2021 to promote sustainable development in host communities.
Eyesan made the remark at a Sensitization Programme in Owerri, Imo State, explained that the PIA 2021 mandates oil companies to contribute 3% of their annual operating costs to Host Communities Development Trusts (HCDTs) for community development projects.
Represented by Atama Daniel, Eyeso said “The funds will be used for education, healthcare, infrastructure, and economic empowerment”.
Eyesan assured that the commission would facilitate a smooth implementation process and ensure compliance by oil companies.
She, however, urged oil-producing communities to protect oil facilities in their areas as well as stop all illegal oil exploration activities within their communities.
The chief executive also disclosed that NUPRC has established Alternative Dispute Resolution Centres to resolve disputes between oil companies and host communities.
Earlier, the National President, HOSTCOM, Dr. Benjamin Tamarenebi, advised the host communities to always embark on sustainable development projects rather than frivolous projects.
He warned traditional rulers against bidding for contracts for execution of projects approved for their communities in line with the provisions of the Petroleum Industry Act.”
Tamarenebi noted that monarchs, as heads of Host Communities Board of Trustees, have the responsibility of supervising the awarding and execution of projects approved for the communities and ensuring accountability, adding that awarding contracts to themselves will lead to compromise.
He disclosed that funds disbursed to the communities are now higher than before and urged the communities to take good advantage of it.
“They can build schools and other sustainable projects and think of something that will always be a more economical variable in the community; if this is done there would be economic activities and development. In order not to waste the funds, manpower, train your children with the funds, give them scholarships instead of buying vehicles or renting apartments in the city”, he said.
In his remarks, the Deputy Executive Director, Environmental Defenders Network (EDEN), Johnson Abiye, urged regulators to ensure smooth implementation of the Petroleum Industry Act as it relates to the oil producing communities.
Abiye noted that many communities that were supposed to be part of HOSTCOM were omitted and called for the situation to be redressed.