Reps to investigate IOCs for not remitting 3% to host communities

The House of Representatives on Tuesday mandated its Committees on Host Communities Petroleum Resources (Downstream) and Petroleum Resources (Midstream) to investigate the non-remittance of 3% of their annual operational expenditure to the Host Community Development Trust Fund by International Oil Companies (IOCs).

This followed the adoption of a motion moved by Hon. Victor Obuzor at the Plenary presided over by the Deputy Speaker, Hon. Benjamin Kalu.

While presenting the motion, the lawmaker said that Section 240 of the Petroleum Industry Act (PIA) stipulates that Oil and Gas Companies should remit 3% of their annual operational expenditure to Oil and Gas producing host communities via the Host Community Development Trust Fund.

According to him, “The main objective is to foster sustainable prosperity within host communities, provide direct social and economic benefits, and enhance harmonious co-existence.

“Two years after the coming into effect of the Petroleum Industry Act, oil-producing companies have deliberately refused to make the necessary remittance as mandated by the PIA, thus sparking agitation within the host communities as they are feeling shortchanged.

“The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which is mandated to facilitate the speedy implementation of the 3% OPEX, has awarded a penalty of $1,825 million to the defaulting oil companies, which is to be paid at the rate of N52,500 per day as stipulated by the Petroleum Industry Act.”