HOSCON’S AGENDA FOR DEVELOPMENT

 Tony Tomiwa commends oil and gas producing communities for their private sector-led investment initiatives

The challenge of development in the oil and gas producing states has remained a huge issue especially in the Niger Delta as events have also shown over time. Niger Delta is so pronounced here because of the intensity of oil exploration relative to other areas and why the cries of neglect, marginalisation and environmental degradation have been loudly orchestrated to let government, the IOCs, LOCs and allied stakeholders rise to the fundamental issues at stake. Invariably, however, every location with oil exploration will also come to experience the situation we have in the Niger Delta though depending on the scale of exploration and exploitation.

In fairness to government, there have been institutional modalities adopted to tackle some of the inherent issues like the Niger Delta Development Commission (NDDC), the various state commissions set up to manage the oil derivation funds, and more recently the Petroleum Industry Act (PIA), a laudable law for which the Buhari administration would be remembered especially by the oil and gas producing communities.

As we wait for the takeoff of the PIA and other relevant goals of the law, what is at stake is the implementation of the new law unencumbered so that the anticipated gains can be achieved for the prosperity of the people especially those at the local communities who are most affected by the ravages of oil production.

Our attention here is also on the derivation fund which is paid monthly to the governments of the oil producing states instead of being paid directly to the local communities in line with the dictates of the constitution. Section 162, sub-section 2 of the Nigerian Constitution stipulates that the derivation fund is for the exclusive use of the oil and gas communities for loss of fishing rights and productive farmlands as a result of oil and gas exploration and production activities.

However, because of the lopsided implementation, there have been cries of abuses as the funds have not been properly managed to serve intended purposes, leading to wastages and preventing the envisaged impact from being felt in many of the oil and gas producing communities.

With this background, it becomes plausible and attractive the development agenda put forward at the recent National Executive Committee meeting of the Host Communities of Nigeria producing oil and gas (HOSCON) in Warri, Delta State.

At the well-attended meeting which brought together the Executive National Chairman, Dr. Mike Emuh; the Northern Coordinator, Alhaji Aminu Yusuf; the National Women Leader, Mrs Perpetual Ogene, all 36 state chairmen and the FCT, traditional rulers from across the states and the youth wing, deliberated for over four hours on the future and fate of the local communities in oil and gas producing states with the resolution to adopt a private sector-led model for development through investments. Leading the charge to look inward and facilitate development in spite of the expectations of financial grants from the government through statutory allocations was the executive national chairman, Prince Mike Emuh, who raised hopes for a new era of prosperity if the various communities are led to believe in themselves and capacity to evolve investment portfolios that can be well managed and sustained by pulling resources from the private sector for investment. But will such investments accommodate any form of partnerships? That was the question by former Director of News of the Nigerian Television Authority (NTA), Alhaji Aliyu Baba-Barau, who, as an investor, participated at the Warri meeting and the answer was that equity participation was already part and parcel of the business model being adopted by HOSCON as it allows for a better relationship between or among partners and indeed the locals who may be land owners.

The various presentations by assigned consultants underscored vividly the seriousness of HOSCON leadership to walk the talk as delegates were put through the various business models being examined for implementation in due course, mainly on the Compressed Natural Gas (CNG ), Agro-allied industry, housing development, gas plant and modular refinery as well as blue economy. As espoused by David Audu, an architect and consultant on the projects, all the above enumerated proposals are worthy of the time and resources as viable businesses in tandem with the objectives of HOSCON. They all have direct benefits to the people and the environment well positioned because of the availability of local resources to thrive. Of course, each of the items is of high economic value to the people: be it agro-allied industries with the massive value-chain in employment opportunities and financial rewards to housing development which will solve the huge housing deficit in most states, gas and modular refinery as an emerging alternative to the moribund refineries in the country and in spite of the Dangote’s behemoth and the various benefits from the water bodies in a blue economy. Yet, the imminent removal of oil subsidy actually recommends the CNG very highly as a business model for any visionary, who can anticipate that it is one thing that will compete favourably with petrol in relative prices when the subsidy is finally removed and why the HOSCON leadership is keen to buy into this business proposal. Thus from having gas conversion plants, there would also be HOSCON’s refueling gas stations, so as consumers buy petrol at filling stations so also will they be queuing to buy gas at such refueling gas stations and taking advantage of the relative cheaper price.   To achieve on all the above, there is the critical element of finance which the Executive National Chairman, Prince Emuh, put at five billion dollars.  Fortunately, an international finance firm in Italy, represented by a finance expert, Alfred Ajagbe, is responding favourably to the dollar request which will see through the implementation of the five selected business models. And to facilitate the takeoff, five committees were also set up to reexamine the intricacies and modalities for effectiveness.

It is really gratifying that the HOSCON leadership is seriously considering the private sector-led investment model for development in the oil and gas communities in the country which experts believe is the way forward for accelerated and sustainable development.

·         Tomiwa is a Journalist

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