Experts in the oil sector have called on the federal government to surrender 50 percent of the oil royalties to the host communities.
They said that doing so would help accelerate development in the oil-producing communities that are currently suffering development challenges despite some special funds that were created and being released for the development of the communities.
An Emeritus Professor of Petroleum Economist and Policy Research, Prof. Wumi Iledare made the suggestion in a paper presentation titled: “The New PIB: Addressing the Host Communities Question,” which he presented at a recent policy dialogue on reporting the Nigeria oil and gas sector, in Lagos.
The professor said the money should be domiciled in the Host Community Trust Fund which is being proposed in the Petroleum Industry Bill (PIB) for the genuine development of the communities for the sake of posterity.
He argued that none of the 13 percent derivation fund being allocated to the Niger Delta Development Commission (NDDC), the monthly allocations to oil-producing states and the Corporate Social Responsibility (CSR) projects carried out by oil companies had been able to stop the agitations by the host communities. H
e attributed the situation to both the insufficiency of the funds and the hijacking of the funds and projects by the elites in the affected states and communities.
“The federal government should surrender 50 percent of the royalty money to this host community fund for posterity’s sake. It must be used to develop the education sector and facilities that will lead to job creation in those states and communities,” Iledare said