Oil Host Communities Back NUPRC, Say Controversy over New Portal Unnecessary

Emmanuel Addeh in Abuja

The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) at the weekend defended the Gbenga Komolafe-led Nigerian Upstream Petroleum Regulatory Commission (NUPRC) over issues surrounding the administration of the three per cent Host Communities Development Trust (HCDT).
The communities stated that the seeming controversy over the establishment of ‘HostComply’, an online reporting platform for stakeholders was unnecessary, noting that the portal will help ensure openness in the management of the HCDT fund as outlined in the Petroleum Industry Act (PIA).

There was a media report that the three per cent fund would shrink following the alleged decision of NUPRC to make it mandatory for the host communities to fund the portal, including hiring lawyers and accountants.
But in a press briefing in Abuja, the National President of HOSTCOM, Dr Style Tamaranebi, alleged that certain vested interests were unhappy with the new wind of transparency and the efforts to ensure that oil-bearing communities feel the impact of the PIA.
According to him, the communities do not have issues with the NUPRC on the particular issue as it will help track, analyse, and report on the use of funds for development initiatives.

Tamaranebi argued that in the past, a powerful individual could divert the funds belonging to the communities to their private pockets, adding that such fraud is no longer possible with the public portal, which now allows openness in what goes on with the monies available to communities.
In addition, he explained that it will allow the HCDTs to upload and showcase projects to be executed by the communities and provide easy proof of three per cent operating expenditure to be paid by settlors as verified by the regulator.

Tamaranebi maintained that it will help the regulator detect and identify non-compliant situations through IT forensics and compliance intelligence tools.
“Over the years, the International Oil Companies (IOCs) and industry players had pumped millions of naira into the said communities before the advent of PIA 2021, and we did not see any meaningful projects being initiated by these players.

“For the avoidance of doubt, the HostComply which is now put on the firing line by industry players is the ultimate to checkmate the activities of the settlors and HCDTs, both in their annual OPEX due for every Trust, knowing very well that it will expose their sharp practices.
“It is not a hidden fact that our communities producing oil and gas in the country have been suffering devastation, deprivations, and desecration of all sorts due to the activities of some critical stakeholders who short-change and create divide-and-rule systems to flourish.

“The HCDT was deliberately created to address the concerns of the host communities and stop the activities of the Shylocks and their collaborators. The NUPRC as the regulator is putting everything in place so that the overall intent of the PIA on this score is effectively realised for the benefit of those envisaged,” he said.
He added that HOSTCOM was therefore not surprised that ‘they’ are fighting back, using every available means, including trying to confuse and deceive members of the public with concocted narratives.

“For over two years of the enactment of 2021 PIA, the settlers sat comfortably. To date, only 76 Development Trusts have been registered, only 45 accounts have been created and only 38 accounts have been funded,” the HOSTCOM national president said.
According to him, more than 100 Development Trusts are yet to be registered with the Corporate Affairs Commission (CAC), explaining that it was even after the pronouncement that NUPRC revoked licenses of operators last month, that the number rose.

“We are confident that NUPRC under the able leadership of Gbenga Komolafe is committed to fostering stronger relationships between host communities and operators and enhancing the dividends of petroleum resources for the prosperity of all stakeholders.
“HostComply limits to the barest minimum, human interference and represents a significant step forward in achieving this vision.
“It is only the non-conformists and those who have something to hide that are afraid of regulations, especially if the regulations limit their capacity to short-change the system and the people,” he added.