Host communities threaten to shut down oil production over 3 per cent PIA fund

By Linus Aleke, Abuja

Host communities in Bayelsa State, have threatened to halt oil production across the state, if the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), fails to refrain from actions that could potentially reduce or create bottlenecks for the three per cent host community fund under the Petroleum Industry Act (PIA).

This threat is contained, in a statement jointly signed by a foremost youth leader, Mr Christopher Tuduo, His Royal Highness, Theophilus Moses, chairman of Dodo River Rural Development Authority, Francis Amamogiran, Hon. Target Segibo of Oporoma Rural Development Authority and former Chairman of Koluama Clan Oil and Gas Committee, Engr Ebimielayefa Dick- Ogbeyan.

The communities expressed readiness to take decisive action and escalate their efforts to address their concerns, if the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), fails to treat the matter as an emergency.

The community leaders noted that the stability of oil operations could be compromised if NUPRC allows the situation to deteriorate further.

The leaders added that the peace being enjoyed in the communities, especially around oil production areas, is not unconnected with their proactive engagement in pacifying the youths across various communities since the signing of the Petroleum Industry Act (PIA).

The communities asked NUPRC to recognize the urgency of the matter and take immediate, steps to resolve the concerns at hand.

They also warned that improper handling of host community issues could have negative repercussions on Nigeria’s oil production and economy.

The communities stated that the NUPRC must reverse any action and regulations adversely affecting the host community to avoid a severe backlash.

They noted that host communities are often excluded from the decision-making process, which results in the use of public resources to defend decisions in newspapers.

They equally criticized NUPRC’s intention, outlined in a letter dated 9th October 2023, and signed by Capt. John R. Tonlagha for the Commission Chief Executive, which proposed participation in various activities related to the host community fund, such as BOT nominations, selection and inauguration, Management Committee Advisory Committee nomination and selection, and facilitation of NEEDs assessment, adding that these would be too much for the three per cent to fund.

The group maintained that while NUPRC’s oversight function is essential, over-involvement in the activities of the HCDTs is counterproductive and financially burdensome.

They also criticized the mandate for HCDTs to hire lawyers and accountants with a minimum of 10 years’ experience, stating that it would be impossible to pay such professionals from the five per cent administrative fund, which comes from the three per cent.

“In reality, no NGO organizations, including those like Accord or the Nigerian Conservation Foundation, which is one of the most successful NGOs in Nigeria, employ full-time lawyers, let alone one with 10 years experience.

The HCDTs are styled as NGO organizations and should be expected to act according to the best practices and standards of that sector,” the statement concluded.