The president of Oil and Gas Host Communities in the Niger Delta, Benjamin Style-Tamaranebi has demanded that a fraction of the 13 percent derivation fund accruing to oil-producing states be remitted to the Host Communities Development Board of Trustees.
He said if this is done, it will complement the three percent revenue accruing to the oil-producing host communities from the Petroleum Industry Act (PIA) to enhance the speedy development of host communities.
The monarch who spoke at a town hall meeting in Port Harcourt, Rivers State, on Tuesday, affirmed that the implementation of three percent funding as stipulated by the Petroleum Industry Act had begun to promote development across host communities.
Tamarenebi, however, expressed dismay over the alleged politicization of the 13 percent derivation originally set aside by the federal government for the development of host communities.
“Recall that we have 13 percent derivation fund expected to be shared amongst the states and host communities.
“State governments have politicized the fund without recourse to the real host communities that produce oil and gas.
‘This shortchanging was the core reason why we engaged in various levels of agitations which eventually led to the establishment of the Niger Delta Development Commission (NDDC) and the Amnesty Programme for our youths,” he said.
The president therefore, urge state governments in the region to take decisive steps so as to ensure that the 13 percent derivation attracts positive impacts to host communities
“The 13 percent derivation is key to the overall development of communities, now that the PIA is on board, we call on the affected state governments to respectfully release part of the 13 percent derivation to the board to enable them drive more developmental projects to the grassroots,” he added.
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Tamarenebi also condemned needles leadership tussles within some host community boards, while also urging disputing boards to take advantage of the dispute resolution centre established by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) located in Yenagoa, Bayelsa State.
He also advised community leaders and stakeholders to continue to secure the oil assets in their domains to safeguard the nation’s economy.
Earlier, Mrs. Oritsemeyiwa Eyesan, Chief Executive of NUPRC had described the PIA as a landmark achievement in Nigeria’s oil and gas sector.
Represented by an Assistant Director in the commission, Mr. Success Ikpe, the director said that chapter 3 of the PIA specifically introduced a structured and transparent framework for host community development trusts.
According to her, the provisions of the Act have ensured that host communities benefit directly from upstream petroleum operations through socio-economic development projects, environmental management, and capacity-building programmes.
