…..as stakeholders urge NUPRC to revoke licences of defaulters
By Haruna Salami
Imminent crisis is brewing in the oil producing communities over non-remittance of 3% annual operational expenditure (OPEX) by oil companies operating Nigeria.
Section 257 ( 2) of the Petroleum Industry Act which came into effect in August 2021, stipulates that Oil and Gas Companies, should remit 3% of their annual operational expenditure to affected host communities.
However, despite the provision of the law, none of the oil producing companies has complied with it, prompting stakeholders from the affected host communities to cry out in Abuja on Wednesday.
National President of HOSTCOM, Dr. Benjamin Tamaranebi at a press conference Wednesday in Abuja wondered why the oil companies are not remitting the 30% to HOSTCOM two years into the implementation of the Petroleum Industry Act (PIA).
He called on the federal government to compel oil companies operating in the region to pay their 3% operating derivation to HOSTCOM as stipulated by Petroleum Industry Act (PIA).
Dr. Tamaranebi said the oil companies are violating the PIA, adding that they pay 13% derivation to oil producing states, 3% to Niger Delta Development Commission (NDDC), but failed to remit 3% to HOSTCOM to be managed by the communities through their trusts.
According to him those trusts have been set up and money must be remitted to them.
He said the “NUPRC has done what the law requires on setting up of the trusts at the Corporate Affairs Commission (CAC), at the banks, etc, but wondered why the NUPRC has not compelled the oil companies to remit the 3%.
Dr. Tamaranebi called on NUPRC to “do the needful by revoking the licences of the oil companies to avert crisis, which is brewing” due to the non-remittance of the 3%”.
“On the menace of oil theft and pipeline vandalism, one of the stakeholders, Engineer George Bucknor called on government to widen the scope of community oriented approach by engaging more of the locals, on pipeline and oil installations protection.
“The Tompolo example has given the desired results, more of such , should be done by government “, he said .
