By Obiabin Onukwugha
The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) has urged oil producing communities to protect oil facilities and desist from allowing illegal oil exploration among them due to its adverse effects on the economy and infrastructural development.
This comes as the NUPRC said it has established Alternative Dispute Resolution Centres to resolve disputes between oil companies and host communities.
Chief Executive Officer of NUPRC, Oritsemeyiwa Eyesan, represented by Atama Daniel, stated this at a town hall meeting hosted by the commission in conjunction with HOSTCOM, HCDTS and other stakeholders in Owerri, Imo State capital at the weekend.
Eyesan expressed concerns over continued illegal oil exploration by some indigenes of the host communities of oil producing areas in the South-East and South South regions.
She said the commission is ensuring the smooth implementation of the Petroleum Industry Act, PIA, pointing out that the law mandates oil companies to contribute 3 percent of their annual operating costs to Host Communities Development Trusts (HCDTs) for community development projects.
While highlighting the challenges faced by the commission in disbursement of funds to oil communities, Eyesan said the setback had also reduced the level of funds for development of the areas.
“The funds will be used for education, healthcare, infrastructure, and economic empowerment,” she stated.
National President of the HOSTCOM, Dr. Benjamin Tamarenebi,.in his remarks, emphasised that host communities should embark on sustainable development projects rather than frivolous projects.
He warned traditional rulers against bidding for contracts for execution of projects approved for their communities in line with the provisions of the PIA.
He also stated that monarchs as heads of HOSTCOM Board of Trustees have the responsibility of supervising the awarding and execution of projects approved for the communities and ensuring accountability, warning that awarding contracts to themselves will lead to compromise.
The HOSTCOM president said funds disbursed to the communities are now higher than before and urged the communities to take good advantage of it.
“They can build schools ,and other sustainable projects. Think of something that will be a more economical variable in the community. If this is done there will be economic activities and development,” he said.
Tamarenebi, also called judicious use of funds in the area of youth development. “In order not to waste the funds, develop manpower, train your children with the funds, give them scholarships instead of buying vehicles or renting apartments in the city,” he added
Also, Deputy Executive Director, Environmental Defenders Network (EDEN), Johnson Abiye called on regulators to ensure smooth implementation of the PIA as it relates to oil producing communities.
He noted that many communities that were supposed to be part of HOSTCOM were omitted and called for the situation to be redressed.
