Host communities seek amendment of PIA, demand upward review of 3% allocation

The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) says the 3 percent statutory fee accruing to host communities as mandated by the Petroleum Industry Act (PIA) is “insignificant”.

Benjamin Tamaramiebi, national president of HOSTCOM, spoke during a press briefing on Tuesday in Abuja.

Section 240 (2) of the PIA states that each operator provides an annual contribution — 3 percent of its actual annual operating expenditure of the preceding financial year — to the host communities’ development trust fund.

In 2021 when the PIA was introduced, stakeholders in the oil communities rejected the 3 percent, describing it as meagre.

Speaking at the event, Tamaramiebi called for an upward review of the 3 percent, adding that a review has become necessary in view of the present economic realities.

He also said the 3 percent provision, which was given in 2021, was no longer a reality or dependable.

“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,” he said.

“The above applies to the 3 percent accruing to host communities. There is need for the immediate upward review of the 3 percent which is now very insignificant due to the prevalent economic realities.

“We give kudos to the Nigeria Upstream Petroleum Regulation Commission (NUPRC) for prioritising first the HOSTCOM regulations and today we are seeing the improvement in our production,”

According to Tamaramiebi, the communities will engage the leadership of the national assembly to push for amendments to 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,” he said.

“In section 52, subsection seven (d) and section 104 subsection four says, money received from Gas Flares Penalties by the Commission shall be for environmental remediation and relief of the host communities of the Settlors on which the penalty 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.”

‘WE CONDEMN PLANS TO SACK LOKPOBIRI, REMOVE AKPABIO’

The HOSTCOM president also condemned the call for the deployment and possible sack of Heineken Lokpobiri, minister of state for petroleum resources (oil) for incompetence and other spurious allegations.

“The fact that Lokpobiri is a renowned lawyer and a PhD holder makes him very qualified and competent. But beyond the above, he has changed the narratives in the oil and gas sector as he took over a year ago,” Tamaramiebi said.

“We wish to state categorically that the talk about incompetence is the figment of the imaginations of sponsored individuals considering the fact that Lokpobiri’s appointment has helped to douse tension, including the issue of insecurity and community agitations.”

He also condemned rumours about an ongoing plan to impeach the Senate President, Godswill Akpabio.

“The HOSTCOM frowns at such plans and advises those behind such divisive, deceptive and destructive moves to jettison it because it is not in the interest of the country,’’ he added.

Also, Tamaramiebi called for support to HOSTCOM, saying the group’s efforts were to ensure that oil and gas-bearing communities were not cheated or treated badly by the international oil companies (IOCs) or agents of government.