The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), has ordered Sterling Oil Exploration and Energy Production Company (SEEPCO), to immediately pay its host communities adequate compensations for environmental degradation or face the wrath of the law.

The order was given during the investigative hearing of the Commission’s Investment Monitoring Committee into the operations of SEEPCO) and the implementation of the Host Community Development Trust (HCDT) provisions of the Petroleum Industry Act (PIA).

The Committee expressed strong concern over SEEPCO’s repeated failure to honour invitations to appear before it despite previous engagements, warning that it would not tolerate attempts by any operator to evade legitimate oversight.

Chairman of RMAFC, Dr. Mohammed Bello Shehu, in his speech during the panel sitting in Abuja, reaffirmed the Commission’s commitment to protecting the interests of Nigeria’s oil-producing host communities.

He stressed that RMAFC will continue to strengthen oversight of operators and institutions responsible for ensuring the equitable delivery of benefits from the nation’s natural resources.

Describing the exercise as an important national service and a critical national responsibility, the Chairman commended the Committee for its diligence and urged members to remain resolute, noting that RMAFC’s constitutional mandate requires firm oversight, transparency and accountability in the management of national revenue assets.

He expressed confidence that the investigation would strengthen trust in the petroleum sector and ensure that host communities receive the full benefits guaranteed under the Petroleum Industry Act.

The Chairman of the Investment Monitoring Committee and Federal Commissioner representing Anambra State, Dr. Ekene Enefe, led an extensive investigative session into SEEPCO’s compliance with the statutory provisions governing Host Community Development Trusts.

Reaffirming the Committee’s resolve to ensure full compliance with the Petroleum Industry Act, Dr. Enefe stressed that host communities must no longer bear the environmental and social impacts of oil exploration without corresponding development.

He declared that the Commission would vigorously pursue its constitutional mandate to ensure operators and regulatory institutions alike fulfil their obligations to host communities and the Federation.

Addressing the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Enefe maintained that RMAFC’s constitutional mandate requires it to hold every institution within the petroleum value chain accountable for the effective discharge of its statutory responsibilities.

He consequently directed NUPRC to immediately address concerns surrounding the Host Community Development Trust established for the affected communities, declaring: “We are giving you 48 hours to dissolve that host community development trust.”

He further condemned SEEPCO’s failure to meet its obligations to host communities and gave the company an ultimatum to pay up what is owed the host communities.

Dr. Enefe added that the Committee would conclude its investigation and forward its findings to the appropriate authorities, emphasizing that RMAFC would discharge its constitutional oversight responsibility without fear or favour.

Earlier, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) delegation, led by Mrs. Ufondu Ejiro, Director, Host Communities, presented the NUPRC’s position on the implementation of Host Community Development Trusts under the Petroleum Industry Act.

She informed the Committee that the Trust had been duly incorporated, funded and structured in accordance with the law, explaining that NUPRC had received and processed documentation relating to community consultations, governance structures, funding matrices and Community Development Plans.

She also presented records of contributions made into the Trust and maintained that the Commission carries out its responsibilities within the framework established by the Petroleum Industry Act and the Host Community Development Regulations.

Responding on behalf of the affected host communities, Mr. Peter Chukwudi, disputed the submissions made by NUPRC, insisting that the communities neither recognised several of the persons presented as their representatives nor accepted that adequate consultations had taken place before the constitution of the Host Community Development Trust.

He further questioned the level of development recorded in the communities despite years of oil production and urged the Committee to ensure that the concerns of the affected communities were fully investigated.

Also responding to NUPRC, Prof. Charles Ofoegbu, Commissioner for Petroleum and Mineral Resources, Anambra State, called for closer collaboration between NUPRC and the Anambra State Government in verifying community representation and monitoring compliance with statutory obligations. He urged greater transparency in the computation of statutory contributions, operational expenditure and the execution of community development projects, stressing that the State Government has a responsibility to protect the interests of its oil-producing communities.