Stakeholders in the oil producing belt have expressed worry over powers given to oil firms in the Petroleum Industry Act (PIA) to exclusively determine what qualifies as a host community.
At the ongoing Warri Oil and Gas Summit 2023, they expressed happiness about the PIA, but pointed out that the definition of the word “host community” in the Act is nebulous and untrammeled to even include nonoil and gas producing communities, especially from the Northern part of the country.
Co-convener of the summit, Akpo Mudiaga Odje, said the Niger Delta stakeholders reject the inclusion of the Northern parts of Nigeria, which is not oil producing in the Act.
Odje said: “We outrightly reject this provision. Our Constitution has already defined, determined and recognised us as host communities in Nigeria. As such, any other law, including the PIA, that attempts to obfuscate that recognition, is patently and overtly null, void and legally otiose.
“These internal contradictions, liabilities and benefits, as host communities under the PIA 2021 is what this summit seeks to bring to the front burner, as part of matters of national importance. Thus, the acquisition of knowledge is the key of this summit, as we discuss and remember the prophetic words of the biblical Hosea: ‘My people perish for lack of knowledge.’
“This knowledge has made us understand that the said three per cent going to host communities from the operational costs and /or budgets of the oil companies must also be paid in dollars, British Pound Sterling and Euros, where applicable.”
The keynote speaker, and Vice Chancellor of the Federal University of Petroleum Resources (FUPRE), Effurun, Delta State, Prof. Akpofure Rim-Rukevwe, expressed worries over the rising pollution of the air, water and environment by increased oil exploration activities.
He said the PIA has declared that 75 per cent of accruals should go to projects, 20 per cent for investment and three per cent for running the admin. He said his concern is not the PIA Act, but the management of it, adding: “The PIA has clearly stated how funds are to be spent; are we going to abide by it?”
