The National President of Host Communities of Nigeria Producing Oil and Gas (HOSTCOM), Benjamin Tamaranebi, has cautioned traditional rulers against bidding for or executing projects approved for their communities, in line with the provisions of the Petroleum Industry Act (PIA).
Tamaranebi issued the warning during a town hall meeting organised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), in collaboration with HOSTCOM Project Management and Advisory Konsult Limited, for Host Communities Development Trusts (HCDTs) and settlors from Imo and Abia states.
He explained that traditional rulers, as heads of the host communities board of trustees, are saddled with the responsibility of supervising the award and execution of community projects and ensuring transparency and accountability.
According to him, awarding contracts to themselves would amount to a conflict of interest and compromise the integrity of the process.
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Tamaranebi noted that the Petroleum Industry Act, which provides for three percent of the annual operating expenditure of oil companies to be set aside for host communities, has brought significant relief to many oil-producing areas.
Delivering a keynote address, the Chief Executive Officer of the NUPRC, Mrs. Oritsemeyiwa Eyesan, described the implementation of the PIA as a new dawn for oil-producing communities.
Represented by Atama Daniel, she urged communities yet to receive their 2024 funding to formally lodge complaints with the commission.
The Deputy Executive Director of the Environmental Defenders Network (EDEN), Johnson Abiye, called on regulators to ensure the effective and seamless implementation of the PIA as it affects host communities.
He also pointed out that several communities that should be part of HOSTCOM were omitted, urging that the anomaly be urgently addressed.
