Mkpoikana Udoma
Port Harcourt — The Federal Government has reaffirmed its commitment to proper implementation of the Host Community Trust Fund under the Petroleum Industry Act, PIA, to ensure that host communities receive their rightful benefits from the oil and gas sector.
The Minister of State for Petroleum Resources (Oil) Sen. Heineken Lokpobiri, disclosed this after a strategic meeting with a delegation from the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, led by Mrs. Ejiro Ufondu, Executive Director for Host Communities.
Lokpobiri emphasized that the Host Community Trust Fund is a “crucial component of the PIA”, designed to directly impact host communities.
However, the Minister noted that since this was the first time the law was being implemented, adjustments are necessary to ensure smooth execution.
“Given that this is the first time we are implementing the PIA, periodic measures are being introduced to ensure its proper execution,” he stated.
He assured that efforts are being made to remove bottlenecks preventing communities from accessing their allocated benefits.
“During our discussions, we adopted critical measures geared towards ensuring that every host community’s Trust Fund is set up for access by the communities,” he added.
The Minister stressed that periodic reviews are essential to protect stakeholders’ interests while maintaining sustainable energy production.
The PIA mandates oil companies operating in host communities to contribute 3% of their annual operating expenses to the Trust Fund, aimed at fostering development, reducing conflicts, and promoting sustainable growth in oil-producing areas.
