By – Memoye Oghu (Port Harcourt)
Two years after enactment of the Petroleum Industry Act (PIA), Oil and gas producing communities are yet to reap from its provisions which many hailed as geared towards revolutionizing the hydrocarbon industry in the country.
The PIA, which was signed into law on 21 August, 2021 by former President Muhammadu Buhari provides that oil and gas host communities would be paid a paltry three percent from the profit of the operating company in their host communities one year after implementation of the law.
But, whereas the law which was signed into law two years ago became operational with the incorporation of the Nigeria National Petroleum Company (NNPC) into a limited liability company (NNPCL) and the subsequent removal of petroleum subsidy, the three percent provision for host communities is yet to come into effect.
However, feelers from a one day sensitization seminar in Port Harcourt, Rivers State capital on Tuesday August 8, 2023 revealed that the host communities are yet to reap from that provision because of their inability to constitute the management boards to manage such funds as recommended by the Act.
In an exclusive chat with our Correspondent shortly after the event, High Chief George Bucknor, one of the facilitators of the seminar in conjunction with the Nigeria Upstream Regulatory Commission (NUPRC) urged host communities to constitute such boards and forward them to the companies for immediate implementation of that provision of the law.
“Until the host communities constitute these boards, that provision cannot be implemented. Host communities are to benefit from that provision one year after signing the PIB into law. And former President Muhammadu Buhari signed the Bill into law on 21 August, 2021. That means host communities would start to benefit from 21 August, 2022,” he said, urging Oil and gas producing communities to comply with the law as a matter of urgency.
A royal father from a host community who refused name on print was visibly angry on the absence of many international oil companies except Shell at the seminar. “Even NUPRC, the government regulatory body and main facilitator of the seminar was absent to throw more light on questions agitating the minds of people in the host communities,” the anonymous traditional ruler stated.
No official of the NUPRC could be contacted as at press time to speak on their absence at the seminar.
The one day sensitization seminar was organized for Oil and gas producing communities in Rivers East and South East Senatorial districts in Rivers State.