The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) have urged international oil companies (IOCs) to comply with the Petroleum Industry Act (PIA) by paying 3% of their annual operating expenses into the host communities’ development fund.
HOSTCOM President, Dr Benjamin Tamaranebi, emphasised that these funds are crucial for improving the lives of people in oil-producing regions. He also commended President Bola Ahmed Tinubu’s administration for reforms that have attracted significant investments, such as the $5 billion Bonga North Deep Offshore Field project.
Dr Tamaranebi praised the leadership of Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), for increasing Nigeria’s oil production from 1.6 million to 2.0 million barrels per day. He noted the NUPRC’s transparency and commitment to host community development.
Call for Compliance
HOSTCOM is calling on all oil companies to establish the required Host Communities Development Boards to ensure funds reach the communities. The organisation warned that companies failing to comply with the PIA could face licence revocations.
“If companies continue to ignore the law, we will escalate the matter to the President, who is also the Minister of Petroleum Resources,” Dr Tamaranebi said.
Commitment to Development
HOSTCOM stressed that the 3% royalty is essential for sustainable development in oil-producing areas and urged the NUPRC to enforce compliance. The group also called on stakeholders to support the NUPRC in delivering benefits to communities as outlined in the PIA 2021.
This demand highlights the importance of ensuring that oil production directly benefits the communities where it takes place, fostering better infrastructure and improved living conditions.