Oil: Host Communities Demand 13% Derivation From States

The Host Communities of Nigeria Producing Oil and Gas (HostCom) has asked state governments in the Niger Delta region to remit a percentage of the 13% derivation fund from the federal government into the Host Community Development Trusts (HCDTs) fund to propel development in oil and gas-producing communities.

HostCom national president, Dr Benjamin Tamaranebi, who made the call during a town hall engagement with HCDTs and Settlors in Port Harcourt, stated that the 3% Petroleum Industry Act (PIA) fund was already promoting development across host communities.

Tamarenebi, however, observed that the 13% derivation, which was originally set aside by the federal government for the development of host communities, had been politicised.

He said, “Remember, we have 13% derivation funds coming to the communities. That fund was not left only for state governments, but also for the development of the host communities.

“The government has politicised the fund without recourse to the real host communities that produce oil and gas. That was the core reason we started fighting. Remember, through our fight, we have the NDDC and amnesty was granted to our youths.

“Now we are looking forward to the state governments to do the same on the 13% derivation. The 13% derivation is key to the lives of host communities. Now that the PIA is on board, we call on the state governments to release part of the 13% derivation to the Trust to complement it so that we can work together,” he said.

Tamaranebi lamented that litigations over who should hold the various leadership positions have hampered development projects under the 3% PIA, saying, “Such things will not bring community growth or development.”

He disclosed that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had established a dispute resolution centre in Yenagoa, Bayelsa State, and called on communities with grievances, including those with oil companies, to make use of the centre.

Tamarenebi regretted that some members of the HCDT are demanding to spend beyond the statutory 5% administration fund.

In her Keynote address, NUPRC chief executive, Mrs Oritsemeyiwa Eyesan, described the enactment of the PIA as a landmark achievement in Nigeria’s oil and gas sector.

Eyesan, who was represented by an assistant director in the commission, Mr Success Ikpe, stated that Chapter 3 of the PIA introduced a structured and transparent framework for HCDTs, ensuring that host communities directly benefit from upstream petroleum operations through socio-economic development projects, environmental management and capacity-building programs.

The NUPRC boss, who called for collective efforts to address identified challenges, said, “The success of HCDTs requires collective commitment from all stakeholders – government, traditional rulers, oil companies and the communities themselves.