Reps probe IOCs’ non-payment of 3% operating cost to Host Communities
The House of Representatives has 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 Victor Obuzor at the plenary […]
House of Reps
The House of Representatives has 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 Victor Obuzor at the plenary on Tuesday.
Presenting the motion, he said 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.
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“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.