Host communities in Nigeria’s oil-producing regions have called on international oil companies (IOCs) to comply with the Petroleum Industry Act (PIA) by remitting three percent of their annual operating expenditure (OPEX) into the host communities fund. This move is aimed at enhancing development in the areas affected by oil exploration.
Dr. Benjamin Tamaranebi, President of Host Communities of Nigeria Producing Oil and Gas (HOSTCOM), emphasized the importance of the oil firms fulfilling their financial obligations to these communities. Speaking at a press briefing, he also acknowledged the substantial $5 billion investment in the Bonga North Deep Offshore Field, attributing this positive development to the policy reforms introduced by President Bola Ahmed Tinubu’s administration.
Tamaranebi commended the leadership of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), under the direction of Gbenga Komolafe, for their transparency and adherence to regulatory frameworks. He highlighted the increase in Nigeria’s oil production, from 1.6 to 1.7 million barrels per day to over 2 million barrels per day, as a testament to the effectiveness of the Commission’s policies.
In his remarks, Tamaranebi applauded the NUPRC’s commitment to sustainable development in host communities, particularly through the implementation of the Host Communities Development Fund. He called for the immediate establishment of the Host Communities Development Board of Trustees by oil companies that have yet to comply with the PIA’s provisions.
“There are some settlors who have failed to set up the required Board of Trustees. We call on them to do so immediately so that the communities can begin to benefit from the PIA’s provisions,” Tamaranebi urged. He further stressed that if oil companies do not comply, HOSTCOM will escalate the issue to the President and relevant regulatory bodies, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), seeking the revocation of their licenses for violating the laws of Nigeria.
Tamaranebi’s statement highlights a growing concern over the equitable distribution of oil revenue, calling for stronger enforcement of the PIA to ensure that host communities receive their rightful share of the benefits from the oil industry. The success of this initiative is seen as crucial for the long-term development and empowerment of Nigeria’s oil-producing regions.
