3% statutory fee: Host communities demand upward review

The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM), have urged upward review of the three per cent statutory fee accruing to host communities.

According to HOSTCOM, the review has become necessary in view of the present economic realities.

The National President, HOSTCOM, Dr Benjamin Tamaramiebi made the call on Tuesday in Abuja while briefing journalists.

He said that the existing three percent had become insignificant due to the prevalent economic realities.

Recall that three percent fee is an Operating Expenses or Expenditure (OPEX) of previous year being remitted to host communities by oil companies as stipulated in the Petroleum Industry Act (PIA) 2021.

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.

“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 percent accruing to Host Communities. There is need for the immediate Upward Review of the three per cent which is now very insignificant due to the prevalent economic realities.

“We give kudos to the Nigeria Upstream Petroleum Regulation Commission (NUPRC) for prioritising first the HOSTCOM Regulations and today we are seeing the improvement in our production,” he said.

He said the three percent provision which was given in 2021 was no longer a reality or dependable.

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 also condemned the call for the deployment and possible sack of Sen. Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil) for incompetence and other spurious allegations

“The fact that Lokpobiri is a renowned Lawyer and a Ph.D holder makes him very qualified and competent. But beyond the above, he has changed the narratives in the oil and gas sector as he took over a year ago.

“We wish to state categorically that the talk about incompetence is the figment of the imaginations of sponsored individuals considering the fact that Lokpobiri’s appointment has helped to douse tension, including the issue of insecurity and community agitations,’’ he said.

He also condemned in very strong terms a rumour about an ongoing plan to impeach the Senate President, Chief Godswill Akpabio.

“The HOSTCOM frowns at such plans and advises those behind such divisive, deceptive and destructive moves to jettison it because it is not in the interest of the country,” he said.

He recalled that Akpabio left indelible records during his two terms as Akwa Ibom Governor.

The president urged support for Akpabio, adding that HOSTCOM had passed a vote of confidence on Akpabio and the leadership of the National Assembly.

“We extend the same Token to Sen. Heineken Lokpobiri, the Minister of State for Petroleum (Oil).

“Finally, as the Host Communities of Nigeria Producing Oil and Gas, we shall remain firm and resolute in fighting to protect the interest of oil and gas bearing communities,” he said.

He, however, 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.