During a recent press conference in Abuja, a coalition known as the Host Communities Confederation (HCC) robustly defended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in response to allegations regarding the non-remittance of 3% operating expenditures (Opex) to some oil host communities in Akwa Ibom. National Chairman Dr. Mike Emuh, alongside key leaders from various host community groups including Jonathan Usigho, Dr. Emerson Moore, Sam Eribo, and George Bucknor, expressed their views.
Dr. Emuh emphasized that claims of a lack of accountability concerning fund management stem from a misunderstanding of NUPRC’s role. He pointed out that it is illogical to hold the regulator accountable for revenue allocated to communities when the obligation lies with the oil companies responsible for development. “It’s misguided to demand that NUPRC account for the 3% Opex Hostcom fund, which is directly managed by the Host Community Development Trust (HCDT), overseen by a board of trustees elected by the communities,” he explained.
He further clarified that NUPRC operates independently from the funds allocated to host communities and thus cannot be expected to account for any sums not remitted to the commission. “The responsibility begins with the settlor to the Host Community Development Trusts,” the group stated.
Addressing the gas flare penalty fund, HCC noted that the matter would be reconsidered once the existing Gas Flare Penalty Act is repealed and revised to align with current global gas revenue realities. Dr. Emuh stated, “The $21 million paid by Mobil for Akwa Ibom to address ecological issues should not overshadow the primary concern, which is ensuring that gas flare penalties are properly remitted to NUPRC by the oil companies.”
He highlighted that NUPRC has implemented mechanisms to facilitate the effective execution of the 2021 Petroleum Industry Act (PIA), designed to foster development for host communities with an emphasis on fairness, accountability, and transparency. To resolve disputes, NUPRC has established Alternative Dispute Resolution Centres in Lagos and Bayelsa, presenting a more peaceful and efficient method than litigation for addressing issues faced by host communities.
Additionally, NUPRC has introduced environmental monitoring systems to ensure compliant implementation of regulations beneficial to host communities’ ecological concerns. Dr. Emuh mentioned advancements in technology that improve interactions between oil companies and host communities.
He also pointed out the launch of Hostcomp, an industry data automation portal aimed at streamlining HCDT implementation processes to promote sustainable prosperity in host communities. “This initiative has enhanced access, inclusivity, fairness, accountability, transparency, and compliance with regulatory standards,” he added.
To ensure clarity and avoid manipulation, the coalition advised host communities to first engage with operating oil companies before seeking outside assistance. Any ‘malicious and absurd’ demands should be reported to the established ADRC for proper investigation, they urged.
Finally, the coalition reiterated that NUPRC remains committed to the development of host communities involved in oil and gas production as outlined in Chapter 3 of the PIA. Concerning alleged delays in funding projects in Akwa Ibom’s host communities, the group noted that compliance with HCDT establishment remains an issue for many settlors. However, they recognized that NUPRC has instituted mechanisms to safeguard funds, ensuring accountability and transparency in their disbursement process.
