The Federal Government has expressed displeasure over the neglect of host communities by oil companies, warning that their attitude contravenes the provisions of the Petroleum Industry Act (PIA).
The government handed down the warning during a mediation meeting between Sterling Oil Exploration and Energy Production Company (SEEPCO), Orient Petroleum, and their host communities in Anambra State, which the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) convened.
The Head of Information and Public Relations Unit, RMAFC, Maryam Umar Yusuf, said in a press release that the meeting, which was witnessed by the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), held on Friday at the headquarters of the commission in Abuja.
At the meeting, the Chairman of the RMAFC, Dr. Mohammed Bello Shehu, charged the oil companies to show commitment towards the implementation of their corporate social responsibilities (CSR) to their host communities.
He emphasised the RMAFC’s commitment to ensuring that oil companies operating in Nigeria live up to their CSR to host communities, in line with the provisions of the Petroleum Industry Act (PIA).
Shehu reminded everyone that the meeting was instituted as a result of allegation of neglect by host communities against the oil companies.
He assured that the commission would be unbiased while discharging its duty as a mediator, adding, “This Commission will always stand for transparency and fairness. We expect oil companies to meet their obligations to the people in whose communities they operate.”
In his remarks, the Chairman of the Investment Monitoring Committee (IMC) in the commission, Hon. Ekene Enefe, who later presided over the meeting, expressed displeasure over SEEPCO’s performance in meeting community development expectations.
He said, “Based on the facts before us with regard to CSR, what we see here is not satisfactory. SEEPCO still has a lot of job to do, and we would like to see real projects on the ground — roads, schools, hospitals, electricity, and jobs for the people in the host communities. This is the result we expect from the deductions made from operational costs.”
The IMC chairman further directed SEEPCO to provide the commission with audited reports of its 3% host community expenditure since the implementation of the PIA.
He added that the commission would carry out oversight visits to verify compliance.
“We would like to tally the projects executed with the reported deductions. Our committee will not hesitate to exercise its oversight function to ensure that host communities benefit as the law demands,” he said.
Speaking on behalf of the host communities of Ogwu Ikpele and Ogwu Aniocha in Anambra State, the leader of the delegation, Mr. Esumai Patrick, lamented years of neglect and unfulfilled promises.
He said, “Our people live without good roads, schools, or hospitals while companies drill oil on our land.
“We welcome investment, but what we ask is fairness. We want to see electricity, jobs for our youths, and real development projects that will touch lives in our communities.”
The representative of SEEPCO, Barr. Emmanuel Ajang, assured the commission that the company had begun the implementation of its Host Community Development Trust.
He explained that identified projects would soon be executed in line with the provisions of the PIA.
Also speaking, the representative of Orient Petroleum, Engr. Ayke Akuwezumba, disclosed that the company had redirected its operations towards gas production through a partnership with Cottonwooden Gas Refinery.
“We are channeling our resources to compressed natural gas (CNG) and liquefied petroleum gas (LPG) production, which will serve industries and households in the region. This is a sustainable plan with long-term benefits for the economy,” he said.
On the regulatory front, the Executive Commissioner, Development and Production at NUPRC, Mr. Enorense Amadasu, assured that the regulator was closely monitoring the companies.
“We are reconciling their metering systems and ensuring that statutory obligations to the Federation are met. Community development projects under the Host Community Trust are also being tracked to guarantee compliance,” he said.
Other RMAFC commissioners present, including Hon. Hauwa Umar Aliyu (Jigawa State), Hon. Ntufam Eyo-Nsa (Cross River State), Hon. Abdulazeez Idris King (Kogi State), Hon. Desmond Akawor (Rivers State), Hon. Nathaniel Adojutelegan (Ondo State), Hon. Ibrahim Sa’ad Bello (Plateau State), and Hon. Aruviere Egharhevwa ( Delta State), stressed the need for accurate reporting of crude production and proper accountability in community development.
