National President, Host Communities of Nigeria Producing Oil and Gas (HostCom), Dr. Benjamin Tamaranebi, yesterday, in Abuja, said funding for HostComply, an application being set up by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will be funded by the regulator.
Speaking during a press conference in Abuja over a report earlier published by The Guardian, Tamaranebi said: “NUPRC is a regulator. They are the ones that set up the HostComply. They are the ones funding it. The funding is not coming from the three percent.”
The Guardian had raised stakeholders’ concerns, which noted that the NUPRC might be overstepping its boundaries by taking out of the three percent in cunning ways through their involvement in activities that would create extra financial burdens. The stakeholders had also noted that the funding for the HostComply must be transparent and the maintenance cost if not properly planned would defeat the projected objectives of the plan.
Tamaranebi said the HostComply remained a welcome development, adding that it will ensure transparency, and accountability and create proper management of the fund.
Calling for a review of section 257 of the PIA, which holds communities liable for breaches of oil company facilities or equipment; he noted that the portion was out of place.
He said since the communities were not being paid to secure the assets, the law remains unfair.
“That is an unfair law. The law is unfair. The security should pay for it. The host communities do not know about how it is securing the assets. But if you want the community to pay for it, then give the security job to the communities,” Tamaranebi said. He referred to the report of The Guardian as a “propaganda campaign to frustrate genuine efforts at refining operations in the industry.”
According to him, the NUPRC as the regulator is putting everything in place so that the overall intendment of the PIA on this score is effectively realised for the benefit of those envisaged.
“We are therefore not surprised that they fighting back, using every available means, including trying to confuse and deceive members of the public with concocted narratives but we are not going to be swayed by their mischief.
“For over two years of the enactment of 2021 PIA, the settlors seat’s comfortable up till date; only 76 Development Trusts has been registered, and only 45 accounts has been created and only 38 accounts has been funded and more than 100 Development Trusts yet not registered with Corporate Affairs Commission (CAC) what an irony is this, and it was even after the pronouncement of NUPRCs revocation of Licenses notice last month
“September 2023 that prompted this number.
The setting up of HostComply is in furtherance to the provision of the PIA 2021, Chapter 3, section 235(1) which mandates: “The settlor shall incorporate Host Communities Development Trust (in this Act referred to as “the trust” for the benefit of the host communities for which the settlor is responsible,” Tamaranebi said.
He said the HostComply is meant to offer comfort to the host community development trust by providing them with a robust technological tool to interface and engage with the settlors and manage projects in their respective communities professionally while meeting global ESG best practices.
Source- Guardian Newspaper.