The House of Representatives on Thursday asked authorities of the Central Bank of Nigeria (CBN) to release the approved N27.6 billion as part of funds generated from gas flaring penalties to host communities in compliance with the provisions of the Petroleum Industry Act (PIA), 2021.
The resolution was passed sequel to the adoption of a motion sponsored by Hon. Awaji-Inombek Abiante, who solicited for the House intervention.
In his lead debate, Hon. Abiante observed that the previous administration of Muhammadu Buhari approved the sum of N27.6 billion, which is part of funds domiciled with the Central Bank of Nigeria as gas flaring penalties, to host and impacted communities of oil-producing areas.
“The House is also aware that over N100 billion has so far been received as gas flaring penalty or fines by the Department of Petroleum Resources and paid into the Central Bank of Nigeria.
“The House is further aware that Section 104 subsection (4) of the Petroleum Industry Act 2021 including other statutory international laws demands that, monies collated as gas flaring penalties be paid to host communities for environmental remediation and relief of these communities.
“The House is concerned that despite the approval of N27.6 billion to be paid to host communities, the Central Bank of Nigeria, Ministry of Finance and relevant government agents are yet to comply with the directive in total disregard to statutory provisions.
“The House is also concerned that the adverse effect of gas flaring on oil-producing areas has continued to hamper the agricultural livelihood of host communities which fuels vandalism and agitations.
“The House is worried that the non-release of the money to host communities not only negates statutory provisions as well as government directives but is also a major factor leading to continuous adverse effects of environmental degradation and the consequent sufferings and agitations.
“The House notes that while the money collated as gas flaring penalties may amount to over N100 billion, it is equally legitimate and imperative to release part of the total funds already approved by the government to the right people to fulfil the provisions of the law to reverse the adverse impact of gas flaring as well as guarantee development in the area,” the lawmaker noted.
To this end, the House urged the Federal Government to hasten the approval for the release of the balance of the funds to host communities.
Hence, the House mandated its committee on host communities to ensure and monitor the release of the initial approved N27.6 billion to legitimate representatives of host communities in compliance with the Petroleum Industry Act, 2021 and statutory provisions and report to back within four weeks for further legislative action.
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