[News] PIA: Oil companies owe host communities N800bn — HOSCON

The Host Communities of Nigeria (HOSCON) has said that in almost two years after the Petroleum Industry Act (PIA) was enacted, oil companies indebtedness to host communities has risen to about N800 billion.

 

This is reportedly due to lack of implementation of the three percent host communities’ development trust fund prescribed by the PIA.

HOSCON national chairman, Dr. Mike Emuh who addressed journalists yesterday, June 21, also said that it is wrong for the federal government to continue to pay the 13 percent derivation to state governors. He stated that the money should be paid directly to the oil host communities.

 

Emuh said;

 

“The PIA made it very clear that three percent of the capital expenditure of the companies operating in the petroleum industry in a year should be given to the host community. This is the three percent host community trust fund.

“By next month, it will be two years that the PIA was created, we have not seen the implementation of the 3% trust fund. Last year alone, the fund was over N400 billion. This year we have another N400 billion. So over N800 billion to be paid to host communities in line with the PIA is now outstanding.

“HOSCON is concerned about the delay in the payment of the three percent PIA. Since the implementation of the new law is in motion, there should be no further delay in the payment. So the non-implementation of this provision in the PIA is an issue.

“Again, we are also concerned about the payment of the 13 percent derivation fund to state governments instead of making the payment to the host communities as enunciated by the Presidential Implementation Committee on the PIA.

“Furthermore, the pipeline surveillance and related infrastructure should also be domesticated and in care of the host communities as articulated by the United Nations and the PIA”.

Also commenting on oil theft, Emuh said they are ready to expose the cabal behind the huge theft of oil and pipeline vandalism in the Niger Delta region.

 

The HOSCON Chairman said;

 

“No empty vessel comes into Nigerian waters without the knowledge of the Federal Government and the host communities and there is no ‘pregnant’ vessel that leaves Nigerian shores without the knowledge of the Federal Government and the host communities.

“The host communities know the cabal behind oil theft and we are ready to expose them if Mr. President gives the chance to expose them”