ISSUES AT THE HOSCON PIA SUMMIT        

                 Tony Olutomiwa writes HOSCON canvasses peace among stakeholders by creating a conducive atmosphere for oil production

The recent summit on the Petroleum Industry Act (PIA) by the Host Communities of Nigeria Producing Oil and Gas and Pipeline Impacted States (HOSCON) held at the Petroleum Training Institute (PTI) Effurun, Warri, Delta State, was indeed an auspicious forum for clarity and understanding of the fundamental value of the petroleum law vis-à-vis the basic interest of the affected local communities. Just as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been engaging stakeholders on the modalities of the implementation of the law with specific focus, in this regard, to the three percent PIA mandated by law to the host communities, the Dr. Mike Emuh-led HOSCON  leadership was also forthcoming in organizing the summit to equally keep the stakeholders in the oil and gas producing communities abreast of the issues and dictates inherent in the PIA towards a peaceful, accountable and progressive outcome in the implementation process.

Although there had been arguments on the rationale and expediency of the three percent allocation to the host communities with major voices including that of Bayelsa State Governor, Senator Douye Diri, clamouring for a higher five percent, as preferable minimum, the HOSCON summit laid bare the need for momentum which can realistically lead to better understanding and improvement now and in the near future.

It is recalled that in the wisdom of the Senate and the House of Representatives, three and five percent were recommended respectively but at the end of the day, a conference of both houses settled for three percent. The lawmakers also approved 30 percent of the NNPC profit share for exploration of frontier basins. Thus the three percent remains as the legally binding allocation which is expected to be judiciously utilized to truly develop the host communities.

As many keen observers have noted, the proper implementation of the PIA could actually be the productive legal means to peace in oil and gas producing communities, especially the Niger Delta, where there had been agitation for resource control on account of perceived lack of equity, fairness and justice in the application of the oil wealth in relation to the level of development in the oil bearing communities.

The summit which brought together notable leaders and members of HOSCON BOT, national executives, traditional rulers across the affected communities/regions and resource persons, X-rayed the gamut of the PIA section on the host communities and heaved a sigh of relief even amidst strong contentions on some specific areas, particularly the portion on the oil companies being the ‘settlors’ and the appointing authority over the selection of those to manage the funds. There were also objections to the ‘unilateral’ appointment of the recently approved 29 institutional fund managers by the federal government without consultation with the host communities and that none of the managers is from the host communities as HOSCON nominees.

But even with such reservations, the HOSCON leadership resolved at the summit that in the greater interest of national development, there should be some momentum and “let’s move forward”. Thus the HOSCON collective advocated for peace and tranquility among stakeholders by creating a conducive atmosphere for oil production being the nation’s economic mainstay. Notwithstanding, the body was convinced on the need for amendment to the ‘settlors/host communities dichotomy’ which HOSCON Executive National Chairman, Dr. Mike Emuh, regarded as not ‘morally cogent nor a democratic enterprise’. Accordingly, the summit has set up a committee to liaise with the relevant authorities for a second look at that particular area of the PIA as a lasting means to endless agitation in the Niger Delta and other oil-bearing communities in the country. In this regard, the summit resolved to work harmoniously through synergy with the Traditional Rulers of Oil Producing Communities of Nigeria (TROPCON) and the IOCs to form a realistic HOSCON Trust Fund without any one left behind in the true meaning of the PIA.  It was rationally argued that the nomination of the BOT, management committee and advisory committee should reflect the HOSCON, TROPCON and the stakeholders (presidents-general). Otherwise, the summit reckoned that it would be in error, for instance, when the oil companies are the ones to nominate and inaugurate the nominees of the trust fund on behalf of the host communities as being done by some oil companies now. To this extent, the summit decided to nominate and inaugurate PIA nominees from oil and gas producing and impacted communities which in the words of Dr. Emuh was done “so that the implementation process can take off effectively in line with the PIA and without anybody hijacking the three percent PIA by other means outside what the law says”.

While the summit totally threw its support to the Gbenga Komolafe-led NUPRC, credited for doing a good job, however, HOSCON appealed to the regulatory body to carry it along as a means of truly honouring the dictates of the PIA, stressing that  exclusion of any key body like HOSCON would mean a hijack of the three percent PIA and should not be allowed in the interest of peace and health of the national economy. The summit further lauded the National Assembly for raising the alarm over the outstanding $9 billion gas flare penalty by the oil companies, stating that before the new development, another outstanding $12 billion out of which N98 billion was approved by the FGN as part payment  and over N800 billion three percent PIA equally approved by the FGN were yet to be remitted to the HOSCON Trust Commission. Other substantive issues addressed with strategic presentations were the commitment of HOSCON to effectively liaise with the relevant authorities on stoppage of oil theft, pipeline security (surveillance), diversification from oil and gas to agriculture through private sector-led investment to serve local communities and creating an enabling environment for economic growth.

 It is expected that the implementation of the PIA would be all-encompassing reflecting the diversity of the communities involved with no one left behind thereby heralding lasting peace it is intended to serve and building an equitable future together.

Olutomiwa is a Journalist