For the people living in communities hosting oil and gas exploration to fully enjoy the benefit of government interventions, there is the need to scrap the Niger Delta Development Commission (NDDC).
This position was canvassed by the Host Communities of Nigeria Producing Oil and Gas (HostCom) which called on the federal government to replace NDDC with Host Communities Development Commission.
The President of HostCom, High Chief Benjamin Tamanarabi JP, stated this while addressing newsmen at the sideline of the public hearing on Petroleum Industry Bill (PIB) at the National Assembly on Tuesday.
The demand of NDDC by HostCom, he said, was predicated on the fact that inhabitants of host communities are not fully benefitting from the various intervention programmes of government, rather, he said, most of the funds allocated to Niger Delta region have been hijacked by politicians and their collaborators in administrative positions.
Tamanarabi lamented that with all the billion of dollars allocated, the host communities have no light, no health centre not to talk of hospitals. With the establishment of Host Community Development Commission, HostCom argued that members want to play a role in the appointment of those who control the affairs of Niger Delta.
He said: “The issue of percentage given to host communities for development is inadequate. In 2009, when the bill was first given to us, it was 10%. It was reduced by 50% in subsequent bill to 5%. And this time, it has also been reduced by another 50% making it 2.5%. If this bill does not pass this time, I assure you, it may be further reduced by another 50% to 1.25%. As host communities, we will accept nothing less than 10% equity share so we can have a sense of belonging and treat the critical assets as our own for the betterment of Nigeria and the oil industry. The oil companies operate in our land.”
Speaking on the specific areas the intervention funds should be channelled, he said, “the government has tried to ensure that these funds get to the host communities, but it has not. The funds have been hijacked by political and interest groups. NDDC is there, Amnesty is there, 13% derivation is there even later Yar Adua created the Ministry of Niger Delta Affairs. Are these intervention agencies doing significant to the communities? These communities are still in a deplorable condition. No development, no light. You could imagine were they are pumping out their billions of dollars, those communities have no light, no health centre not to talk of hospitals.”
Speaking further, he disclosed that the gas flare issue is another thing that kills the people slowly, adding that, that is the issue they are raising.
“If these funds are directly given to host communities, every community knows what to do. If it is a school we needed, we put up a school. But if these funds are left in the hands of politicians, they will siphon it just like what happened in the NDDC.
“If it is within my powers, I will scrap NDDC. It has been there for about 20 years and nothing of importance has been impacted to the communities. Scrap it and form Host Communities Development Commission. We want host communities to come in and have the basis than setting up intervention agencies. Let our people who we trust, not government officials form the commission.
“We cannot hold these intervention agencies responsible because we did not appoint them. If I appointed you and you misbehave or under perform, I have the rights to withdraw you and punish you. So it is left to the federal government, who did the appointment to sanction such people,”
HoSTCOM said. Also speaking, the Minister of State for Petroleum, Timipre Silva said that as member of the host community, “if you have to look at it properly you’ll discover that 10% of profit is different from 10% of the OPECs.
“Before now you had the provision 10% of profit. And profit means that if I don’t declare it, you don’t do anything. I can decide to say 100% of profit and then I don’t declare profit. So you don’t get anything. But in this case it is 2.5% of the Operating Cost. So at the end of the year we look at your operating cost and of course take 2.5% of that cost to the budget of the next year.
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“I don’t like to discuss details of the Bill at this point because these are just proposals before the National Assembly and until we dispersed we had not discussed it.
“But of course since it came up here I thought I should mention it. As far as we are concerned, we have made a very fair proposal. Fair to the host communities, fair to the country and fair to the companies.
“And we have put this Bill in front of the National Assembly and they have the competence to look at it as National Assembly and pass it the way they see fit. So at this point, I do not want to go into the detailed aspect of the Bill.
“But the bill is before them and we’re happy at the progress. And as you heard the Senate President said yesterday, we’re expecting that the Bill will be passed at the end of this quarter or early next one.”
Also, the Delta State Government has presented its position on the Petroleum Industry Bill (PIB) before the National Assembly where it sorts for legislations that will give more participation to host communities in the nation’s oil and gas industry.
State Commissioner for Oil and Gas, Prince Emman Amgbaduba made the presentation at the ongoing public hearing on PIB before the Senate Joint Committee on Petroleum Upstream and Downstream on Monday in Abuja.
The government position was contained in a 30-page document which the commissioner presented on behalf of the government. Amgbaduba told the committee to ensure there are legislations that encourage host communities’ participation in the industry in the interest of peace and justice.
He said the current smooth and peaceful operations by oil multinationals in the state is due to the peaceful disposition of Governor Ifeanyi Okowa who constantly engage host communities in meaningful dialogue.
According to him, Delta State Government supports the position of placing oil host communities in charge of protection of pipelines and other facilities domiciled in their communities and be allowed the privilege of having such contracts.
He remarked that it was unreasonable to bring in outsiders as contractors to protect pipelines that are in the host communities when the people have capacity to provide such protection.
“As a major oil and gas stakeholder in the Niger Delta, we have firsthand experience as to what is required to ensure a smooth co-existence between the host communities and oil companies.
“We also emphasized that the host communities should be allowed to provide the executive of the various boards
“We also frown at the practice where pipeline security and protection were given to outsiders whereas the various host communities have capacity to secure the pipelines. It is therefore unreasonable to bring in outsiders to secure pipelines and other facilities when the host communities have the capacity to provide such services locally.
“We also asked for the issues of tenants, percentage and dispute resolutions as it concerns the oil and gas sector. We have asked the National Assembly to incorporate these suggestions and many more into the PIB Bill and we believe that presentation made by the Delta State Government in the 30-page document if implemented carefully will create the needed conducive atmosphere for free and fair operations of the oil and gas sector,” he stated.
