The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has charged oil companies with demonstrating a commitment to implementing their corporate social responsibility (CSR) in their host communities.
Chairman of the Commission, Dr. Mohammed Bello Shehu, gave the charge during a mediatory meeting between Sterling Oil Exploration & Energy Production Company (SEEPCO), Orient Petroleum and their host communities in Anambra State.
The meeting was held on Friday in Abuja and was witnessed by the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).
Dr. Shehu emphasised that RMAFC was committed to ensuring that oil companies operating in Nigeria live up to their Corporate Social Responsibility (CSR) to host communities, in line with the provisions of the Petroleum Industry Act (PIA).
The chairman, who reminded participants that the meeting was established due to allegations of neglect by host communities against the oil companies, assured that the commission would remain impartial in its role as mediator.
He said, “This commission will always stand for transparency and fairness. We expect oil companies to meet their obligations to the people in whose communities they operate.”
In his remarks, the Chairman of the Investment Monitoring Committee (IMC) in the Commission, Hon. Ekene Enefe, who later presided over the meeting, expressed displeasure over SEEPCO’s performance in meeting community development expectations.
He said, “Based on the facts before us about CSR, what we see here is not satisfactory. SEEPCO still has a lot of jobs to do, and we would like to see real projects on the ground — roads, schools, hospitals, electricity, and jobs for the people in the host communities. This is the result we expect from the deductions made from operational costs.”
The IMC chairman further directed SEEPCO to provide the commission with audited reports of its three per cent host community expenditure since the implementation of the PIA. He added that the commission would carry out oversight visits to verify compliance.
“We would like to tally the projects executed with the reported deductions. Our committee will not hesitate to exercise its oversight function to ensure that host communities benefit as the law demands,” Enefe stated.
Speaking on behalf of the host communities of Ogwu Ikpele and Ogwu Aniocha in Anambra State, the leader of the delegation, Mr. Esumai Patrick, lamented years of neglect and unfulfilled promises. He said, “Our people live without good roads, schools, or hospitals while companies drill oil on our land.”
He further said, “We welcome investment, but what we ask is fairness. We want to see electricity, jobs for our youths, and real development projects that will touch lives in our communities.”
The representative of SEEPCO, Barr. Emmanuel Ajang assured the Commission that the company had begun implementing its Host Community Development Trust. He explained that identified projects would soon be executed in line with the provisions of the PIA.
Speaking, Engr. Ayke Akuwezumba, who represented Orient Petroleum, disclosed that the company had redirected its operations toward gas production through a partnership with Cottonwooden Gas Refinery. “We are channelling our resources to compressed natural gas (CNG) and liquefied petroleum gas (LPG) production, which will serve industries and households in the region. This is a sustainable plan with long-term benefits for the economy,” he said.
On the regulatory front, Mr. Enorense Amadasu, Executive Commissioner, Development and Production at NUPRC, assured that the regulator was closely monitoring the companies. “We are reconciling their metering systems and ensuring that statutory obligations to the Federation are met. Community development projects under the Host Community Trust are also being tracked to guarantee compliance,” he said.
Other RMAFC Commissioners present, including Hon. Hauwa Umar Aliyu (Jigawa State), Hon. Ntufam Eyo-Nsa (Cross River State), Hon. Abdulazeez Idris King (Kogi State), Hon. Desmond Akawor (Rivers State), Hon. Nathaniel Adojutelegan (Ondo State), Hon. Ibrahim Saad Bello (Plateau State), and Hon. Aruviere Egharhevwa ( Delta State) stressed the need for accurate reporting of crude production and proper accountability in community development.