3% PIA Funds: Host Communities Warn Of Potential Disruption To Oil Production

Host communities in Bayelsa State have issued a stern warning, threatening to disrupt oil production across the state unless the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) refrains from actions that might hinder the distribution of the three per cent host community fund as stipulated in the Petroleum Industry Act (PIA).

In a joint statement signed by prominent figures including Mr. Christopher Tuduo, youth leader; His Royal Highness Theophilus Moses; Francis Amamogiran, Chairman of the Dodo River Rural Development Authority; Target Segibo of the Oporoma Rural Development Authority; and Engr. Ebimielayefa Dick-Ogbeyan, former Chairman of the Koluama Clan Oil and Gas Committee, the communities expressed their preparedness to escalate efforts if NUPRC fails to address the issue promptly.

Stressing their active role in calming youth unrest since the PIA‘s signing, they cautioned that neglecting host community concerns could jeopardize oil operations, impacting Nigeria’s oil production and economy.”

They argued that the host communities are frequently left out of decision-making processes, leading to the use of public resources to justify decisions in the media.

Additionally, they emphasized the importance of NUPRC’s oversight function but cautioned against excessive involvement in the Host Community Development Trusts’ (HCDTs) activities, deeming it counterproductive and financially burdensome.”

“They are getting into the operations arena, and this will not augur well for the industry because each participation by the NUPRC will be funded by the HCDT trust.”