The Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Mrs. Oritsemeyiwa Eyeso, has said the commission will ensure oil companies comply with the Petroleum Industry Act (PIA) 2021 to promote sustainable development in host communities.

Mrs. Eyeso made the statement at a sensitization programme in Owerri, Imo State, where she 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.

“The funds will be used for education, healthcare, infrastructure, and economic empowerment,” she said.

Eyeso, who was represented by Atama Daniel, said 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 and 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.

The National President of the HOSTCOM, Dr. Benjamin Tamarenebi in his remarks at the occasion earlier 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.”

He stated 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.

The HOSTCOM president said 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.”

In his remarks, the Deputy Executive Director, Environmental Defenders Network (EDEN), Johnson Abiye said regulators should 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. (The Nation)

Update news