Worried by continuous devastation , gas flaring is causing in their various communities , the oil and gas producing communities in Nigeria (HOSTCOM), has demanded for immediate release of N98billion compensation fund promised by Federal Government three years ago .
It also seeks for upward review of percentage of remittances from annual Operational Expenditure ( OPEX) of the International Oil Companies ( IOCs) , to host communities from 3% to at least 10% , just as it alleges that highly placed Nigerians , are behind oil theft in Niger Delta .
HOSTCOM President, High Chief Benjamin Tamaranebi , stated these , in an exclusive interview with the Blueprint Newspaper in his Abuja office on Wednesday.
Tamaranebi pointedly declared that the N98billion approved as compensation fund against devastating effects of gas flaring in affected communities in Niger Delta , was long over due for payment.
The fund according to him , was agreed upon by President Muhammadu Buhari led Federal Government and gas producing communities in 2021 on the strength of request made to that effect and obvious need for it .
He however lamented that despite the urgent need for the compensation fund , the federal government has not released a dime in that respect , and invariably subjecting the affected communities to unmitigated devastating effects of gas flaring .
” Effects of Gas flaring across affected communities in Niger Delta are both devastating and killing because gas flare is poisonous , destroys fertility of farm lands and even makes rains in the affected communities to be acidic.
” These devastating effects that had been endured by Niger Deltans since 1984, aside those from oil exploration and exploitation ,since 1960s and 70s , made request for compensation fund to be made and which was agreed upon by the Federal Government in 2021 and even provided for in section 104 (4) of the Petroleum Industry Act ( PIA) .
” But three years down the line , the federal government has refused to pay the N98billion promised as compensation fund for communities affected by gas flaring , using bureaucratic bottleneck as excuse which was not so , when N100billion was released for Myetti Allah Cattle breeders.
” People in the affected communities are running out of patience and government must act fast by paying the N98billion compensation fund ” , he said .
He added that oil producing communities are also calling for upward review of 3% OPEX recommended for IOCs to pay them as contained in the PIA to at least 10% or more .
According to him , although 50% of the IOCs are remitting the money to host communities through established
Host Community Development Trust Fund, (HCDFT) as being coordinated by Nigerian Upstream Petroleum Regulatory Commission ( NUPRC) but the money is very meagre now based on realities on ground.
” When 3% was recommended from OPEX of IOCs for host communities in 2021, a bag of Rice was N30, 000 which is now between N90, 000 or N100, 000 just as a bag of Cement which was N3,500 then and now N9,000 or N10, 000 etc .
” There is need for urgent upward review of the fund and also amendments of some provisions of the Act , like sections 52( 2&4), 257(2) etc .
On oil theft, the HOSTCOM President alleged that highly placed Nigerians , are being the crime .
” Oil theft is a very sophisticated crime being perpetrated by highly placed people in the country who has the resources for sophisticated equipments to commit the crime .
” It takes hours , days and weeks to run pipelines to the high seas , clearly showing that those involved in such crime are not just ordinary Nigerians willing to sabotage the Nation’s economy but highly placed Nigerians with enormous resources.
” Way out is for the government at both the federal and State levels , to collaborate with the Host Communities in the area of surveillance and protection of the national asset .
” The war against the economic sabotage called oil theft can be decisively won if host communities are carried along by other critical stakeholders which will bring about required increase in daily oil production from the 1.6million barrels per day it is presently, to 2million barrels and even 3million barrels per day “, he said .
