PIA: FG tasks Host Community Trusts on utilisation of 3% funds

The Federal Government has urged Host Community Development Trusts (HCDTs) in the Niger Delta to maximize the three percent funds by PIA to ensure that communities reap the benefits of such funds.

The News Agency of Nigeria (NAN) recalls that the Petroleum Industry Act (PIA) 2021 mandates oil firms to set aside three per cent (3%) of its operational expenses for development of its host communities.

The Minister of State Petroleum Resources (Oil), Sen. Heineken Lokpobiri, gave the charge during the KEFFESO Stakeholders Forum in Yenagoa, the Bayelsa capital.

NAN reports that the theme for the event is “Envisioning Sustainable Community Development in Niger Delta Host Communities: Identifying Challenges and Actualizing The PIA Paradigm Shift.

According to Lokpobiri, in a bid to bring stability to the oil sector and to address the agitations occasioned by lack of development in host communities, the federal government enacted the PIA and set aside three per cent operational expenses by oil and gas firms for host communities development.

The Minister pointed out that infighting amongst stakeholders in host communities has made it difficult for oil bearing communities to access the funds accruing to the HCDTs.

He called on host communities to collaborate with the federal government and operating companies to ensure that oil production services are not disrupted, stating that host communities will be the eventual losers if oil production are disrupted.

“This KEFFESO Stakeholders Forum is to see how host communities can maximize the benefits from the Host Communities Trust Funds as prescribed by the PIA.

“I came to speak to them about taking ownership of oil and gas facilities that are located in different parts of the country.

“Any time there is disruption in oil production everybody loses, the federal government, oil production companies and the host communities.

“That is why I said it is important they take this message home, let them work with all stakeholders, the federal government, oil companies and host communities should work together.

“As stakeholders who have their respective stakes in oil and gas operations in the country, we should work together to ensure that we maximize the benefits of oil and gas.

“Don’t forget there is a global campaign against the continuation of production of fossil fuel.

“Fossils fuel will never go away. Fossil fuel will not have any value unless you bring it out of the ground or from the sea to the market that is why we need this collaboration,” he said.

According to him: “I want to recommend this KEFFESO model to all parts of the country that are into oil and gas that when you have sustained peace you will benefit.

In his remarks, the Executive Secretary of the Nigerian Content Development and Monitoring Board, NCDMB, Engr. Omotsola Ogbe reiterated the commitment of the Board to leverage on the provision of the NOCGIiC Act.

He equally said that the NCDMB’s Community Content Guidelines aim to ensure sustained community engagement and play the part vested on the Board and ensure that the community content is respected and recognized in the entire oil and gas value chain.

Represented by the Director Legal Services of the Board, Mr Naboth Onyesoh, commended the KEFFESO Host Community Development Trust.

First E & P and the Minister of State Petroleum Resources Oil towards the support government to the KEFFESO trust fund.

On his part, the MD/CEO of First E & P, Mr Ademola Adeyemi-Bero said the KEFFESO Stakeholders Forum is a veritable platform to discuss and strategize for a meaningful and sustainable future for host communities.

He noted that the forum marks a pivotal commitment of the company’s journey towards tackling the present challenges faced by the marginalized communities in the Niger Delta.