Lokpobiri: Host communities must secure oil installations to benefit from development funds

Heineken Lokpobiri, minister of state for petroleum (oil), has called on oil-producing communities in Niger Delta to work together in peace to be able to fully benefit from the host community trust fund provided by the Petroleum Industry Act (PIA).

Lokpobiri appealed to the communities on Friday while speaking at the KEFFESO Stakeholders Forum in Yenagoa, Bayelsa state.

He said one of the reasons for the PIA is to ensure that communities directly benefit from the resources generated in their region.

“Host Communities (HostCom) must sustain peace and a conducive environment across the Niger Delta to continue benefiting from the Host Community Trust Fund provided by the Petroleum Industry Act (PIA),” the minister said.

“This was a key message I delivered during our engagement with Host Communities at the KEFFESO Stakeholders Forum in Yenagoa. 

“As critical stakeholders in Nigeria’s oil industry, HostComs must prioritize stability and the security of oil installations to maximize the opportunities presented by the Trust Fund.

“The federal government, under the leadership of President Bola Ahmed Tinubu, remains committed to fostering the development of Host Communities. 

“This commitment is evident in the implementation of the PIA, ensuring that communities directly benefit from the resources generated in their region.”

Lokpobiri also commended the host communities for their cooperation, adding that it has contributed significantly to the peace currently enjoyed in the region hence, the increase in production.

“I highlighted that sustaining this progress is vital to ensuring long-term prosperity because a secured and stable environment will not only guarantee continuous access to development funds but will also attract further investments that can drive growth and improve livelihoods,” he said

On August 27, 2024, 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, called for an upward review of the 3 percent, adding that a review has become necessary in view of the present economic realities.