A dispute over who represents oil-producing communities has led the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) to give the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) 48 hours to dissolve a Host Community Development Trust established for affected communities.
The order was contained in an official statement by the commission on Friday, after an investigative hearing held at RMAFC headquarters over the operations of Sterling Oil Exploration and Energy Production Company (SEEPCO) and its compliance with the Host Community Development Trust provisions of the Petroleum Industry Act (PIA).
READ RELATED NEWS
Tinubu reconstitutes NUPRC, NMDPRA boards, names Magnus Abe as chair
NUPRC confirms release of $185m, N14.9bn to NNPCL from frontier exploration fund
NMDPRA, NUPRC role conflict must end, energy lawyers tell lawmakers
The hearing exposed a disagreement between the regulator and representatives of the affected communities over how the trust was constituted, how community representatives were selected and the level of development delivered to the areas.
The dispute also brought the NUPRC’s verification process under scrutiny after counsel for the communities, Peter Chukwudi, rejected the regulator’s position that the trust had been properly established.
Communities reject some representatives
Chukwudi told the Investment Monitoring Committee that several people recognised as community representatives were not accepted by the communities they were meant to represent.
He also said adequate consultations were not held before the trust was constituted. He questioned the level of development in the affected communities after years of oil production and asked the committee to examine the grievances raised by the communities.
The NUPRC delegation, led by its Director of Host Communities, Ufondu Ejiro, gave a different account.
Ejiro said the trust had been duly incorporated, funded and structured in line with the law. She told the committee that the regulator had processed documents covering community consultations, governance structures, funding arrangements and Community Development Plans.
The NUPRC also presented records of statutory contributions made into the trust.
The regulator maintained that it had carried out its duties under the Petroleum Industry Act and the Host Community Development Regulations.
The disagreement became central to the hearing as the committee examined whether the documents used to establish the trust matched the views of the affected communities.
Federal Commissioner representing Kogi State, Abdulazeez Idris-King, questioned whether relying only on documents submitted by operators was enough to prove that genuine consultations had taken place.
Federal Commissioner representing Rivers State, Desmond Akawor, said there appeared to be a disconnect between the regulator and affected state governments. He said closer cooperation and direct engagement with operators were necessary.
RMAFC orders dissolution
The Chairman of the Investment Monitoring Committee and Federal Commissioner representing Anambra State, Ekene Enefe, ordered the NUPRC to address the issues surrounding the trust.
“We are going to give you 48 hours to dissolve that Host Community Development Trust,” Enefe told NUPRC officials.
The committee also criticised SEEPCO for repeatedly failing to appear before it after previous invitations.
Enefe said the company had failed to meet obligations owed to host communities and said the committee would give it an ultimatum to settle what was owed.
“We are going to write them, and we are going to give them an ultimatum to pay up what is owed to the host communities,” he said.
He said the committee would complete its investigation and submit its findings to the appropriate authorities. He also said the commission would carry out its constitutional oversight duties “without fear or favour.”
RMAFC Chairman Mohammed Shehu said the commission was committed to protecting the interests of oil-producing host communities and monitoring operators and institutions responsible for delivering benefits provided by law.
He called the hearing “an important national service and a critical national responsibility.”
Shehu also said the commission’s constitutional mandate required “firm oversight, transparency and accountability in the management of national revenue assets.”
Anambra State Commissioner for Petroleum and Mineral Resources, Professor Charles Ofoegbu, asked for closer cooperation between the NUPRC and the state government in checking community representation and compliance with statutory duties.
He also sought greater openness in calculating statutory contributions, operational expenditure and spending on community development projects.
The Host Community Development Trust was created under the Petroleum Industry Act 2021. It requires petroleum operators, known as settlors, to establish trusts for host communities and contribute three per cent of their actual annual operating expenditure in the preceding year.
The funds are meant to support community development projects and peaceful relations between operators and host communities.
The NUPRC regulates the trusts, including their incorporation, funding, governance and development projects.
The RMAFC hearing now leaves the disputed SEEPCO trust facing dissolution within 48 hours, as the committee prepares its findings for the appropriate authorities.
For More News Details, Visit New Daily Prime.
