By Faith Anisiobi, The Sight News
The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has directed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to dissolve a disputed Host Community Development Trust (HCDT) within 48 hours, while also moving to compel Sterling Oil Exploration and Energy Production Company (SEEPCO) to settle outstanding obligations owed to affected host communities.
The directive was issued during an investigative hearing by the Commission’s Investment Monitoring Committee into SEEPCO’s operations and the implementation of the Host Community Development Trust provisions of the Petroleum Industry Act (PIA), held at the Commission’s headquarters in Abuja.
RMAFC Chairman, Dr. Mohammed Bello Shehu, reaffirmed the Commission’s commitment to safeguarding the interests of oil-producing host communities, saying it would continue to strengthen oversight of operators and institutions responsible for ensuring that communities benefit equitably from Nigeria’s natural resources.
Describing the investigation as a critical national responsibility, Shehu commended the committee for its diligence and stressed that the Commission’s constitutional mandate requires transparency, accountability and firm oversight in the management of national revenue assets. He expressed confidence that the exercise would strengthen public trust in the petroleum sector and guarantee that host communities receive benefits provided under the Petroleum Industry Act.
Chairman of the Investment Monitoring Committee and Federal Commissioner representing Anambra State, Dr. Ekene Enefe, led the hearing, focusing on SEEPCO’s compliance with statutory provisions governing Host Community Development Trusts.
Enefe criticised SEEPCO for repeatedly failing to honour invitations to appear before the committee, warning that the Commission would not tolerate attempts by operators to evade legitimate oversight.
Addressing NUPRC, he maintained that RMAFC has a constitutional responsibility to hold institutions across the petroleum value chain accountable for the discharge of their statutory duties.
He subsequently directed NUPRC to address concerns surrounding the Host Community Development Trust established for the affected communities, giving the regulator 48 hours to dissolve the trust.
The committee chairman also announced that RMAFC would issue SEEPCO an ultimatum to pay all outstanding obligations owed to host communities, adding that the committee would conclude its investigation and forward its findings to the appropriate authorities.
Earlier, NUPRC’s Director of Host Communities, Mrs. Ufondu Ejiro, told the committee that the Host Community Development Trust had been duly incorporated, funded and established in line with the Petroleum Industry Act. She said the commission had processed documentation covering community consultations, governance structures, funding arrangements and community development plans, insisting that the regulator had acted within the legal framework.
However, counsel to the affected host communities, Mr. Peter Chukwudi, disputed NUPRC’s submissions, arguing that several individuals presented as community representatives were not recognized by the communities and that adequate consultations had not taken place before the trust was established. He also questioned the level of development in the oil-producing communities despite years of petroleum operations.
Anambra State Commissioner for Petroleum and Mineral Resources, Prof. Charles Ofoegbu, called for closer collaboration between NUPRC and the state government in verifying community representation and monitoring compliance with statutory obligations. He also advocated greater transparency in the computation of statutory contributions and the execution of community development projects.
Federal Commissioners at the hearing also expressed concerns over the implementation of the Host Community Development Trust. The Federal Commissioner representing Rivers State, Amb. Desmond Akawor, said there appeared to be a disconnect between the regulator and affected state governments, while lamenting SEEPCO’s absence from the hearing.
Similarly, the Federal Commissioner representing Kogi State, Hon. Abdulazeez Idris King, questioned the effectiveness of NUPRC’s verification process, warning that reliance on documents submitted by operators alone may not sufficiently establish that genuine consultations were held with host communities.
The Federal Commissioner representing Jigawa State, Hon. Hauwa Umar Aliyu, urged regulatory agencies to uphold professionalism and impartiality, stressing the need to give equal attention to the interests of host communities alongside those of oil operators.
Concluding the hearing, Enefe assured stakeholders that all submissions and documentary evidence would be carefully examined, reiterating that the committee would continue its investigation until all relevant facts were established and appropriate recommendations made.
The hearing forms part of RMAFC’s ongoing oversight efforts to strengthen transparency, improve accountability and ensure that host communities receive the full benefits guaranteed under the Petroleum Industry Act.
