The House of Representatives has decided to investigate the non-remittance of three per cent of their annual operational expenditure to the Host Community Development Trust Fund by International Oil Companies (IOCs).
The decision of the House to launch the investigation was sequel to the adoption of a motion moved at the plenary on Tuesday by Hon. Victor Obuzor.
Moving the motion, Obuzor said Section 240 of the Petroleum Industry Act (PIA) stipulates that Oil and Gas Companies should remit 3 per cent of their annual operational expenditure to Oil and Gas producing host Communities via the Host Community Development Trust Fund;
The lawmaker noted that the main objective was to foster sustainable prosperity within Host Communities, provide direct social and economic benefits and enhance harmonious co-existence.
He expressed concern that two years after the coming into effect of the PIA, 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;
Obuzor stressed that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which is mandated to facilitate speedy implementation of the 3 per cent 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 PIA.
The House mandated “The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to revoke the licenses of defaulting IOCs for violation of extant Laws and protocols of the United Nations Framework Convention on Climate Change (UNFCCC) Clean Development Mechanism (CDM) GreenHouse Gas (GHG);
“Mandate the 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) and report back within six (6) weeks for further legislative action.”
Adedayo Akinwale
Correspondent
THISDAY Newspapers, Abuja
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