Benjamin Tamaramiebi, national president of The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) speaking during a press briefing on Tuesday in Abuja called for an upward review of the 3 percent statutory fee accruing to host communities as mandated by the Petroleum Industry Act (PIA).
He said the 3 percent provision, which was given in 2021, was no longer a reality or dependable in view of the present economic realities. He described the current 3% fee as “insignificant”.
“While we commend the implementation of the PIA 2021 that has started in some areas, there are many things and many communities that have to be taken care of.
The above applies to the three per cent accruing to host communities. There is a need for the immediate upward review of the three per cent which is now very insignificant due to the prevalent economic realities”.
Tamaramiebi also appealed to the oil companies that had not complied with the HOSTCOM regulations to do so immediately to incorporate the Host Communities Development Trust Fund (HCDT) for maximal use.
According to him, they will engage the leadership of both chambers of the National Assembly and members to push for amendments of the PIA to address contentious areas and clauses.
Listing sections for amendment, he included section 257 sub section two that provided “if there is vandalism or sabotage, the community will forfeit the actual cost of repair.
“While section 52 says there should be a Midstream and Downstream Gas Infrastructure Fund.
“In section 52, sub section seven (d) and section 104 sub section four says, money received from Gas Flares Penalties by the Commission shall be for environmental remediation and relief of the host communities of the Settlors on which the penalty are levied.
“Gas Flare funds shall be channelled to the Trust Fund Account set up by Settlors to avoid crises, and other notable sections of the PIA 2021 Act,’’ he said.
The HOSTCOM President called for support to HOSTCOM which efforts was to ensure that oil and gas bearing communities were not cheated or treated badly by the International Oil Companies (IOCs) or agents of government.
