Reps Mull Plan To Raise Oil Companies’ Hostcom Fund To 6%

The House of Representatives Committee on Host Communities (HOSTCOM) has disclosed plans to sponsor a legislative amendment to the Petroleum Industry Act (PIA) 2021 to increase the statutory funding obligation of oil and gas companies to host communities from 3 per cent of annual operating expenditure to 6 per cent.

The lawmakers made the disclosure at the end of a joint retreat between the House Committee on HOSTCOM, the House Committee on Public Petitions, and HOSTCOM Trustees of the Niger Delta, held at Protea Hotel, Owerri, on Wednesday.

Chairman of the HOSTCOM Committee, Hon. Dekor Dumnamene Robinson, who is expected to lead the amendment process, said the current 3 per cent allocation is no longer sufficient to address development challenges in oil-producing communities.

“Three per cent was a good start in 2021, but five years of implementation have shown clearly that it is insufficient to meet the critical development needs of our communities, including schools, healthcare, roads, potable water, youth employment, skills acquisition, and environmental remediation,” he said.

Robinson said the proposed amendment would follow the legislative process of the House of Representatives with the support of HOSTCOM Trustees across the Niger Delta.

The retreat resolved that the amendment should be drafted and pursued through the House with stakeholder backing from host communities.

Participants also called on stakeholders, including the Federal Ministry of Petroleum Resources, NNPCL, and the NUPRC, to support the proposal in the interest of peace and sustainable development in the Niger Delta.

Delivering a keynote address, Prof. Samuel Dike, an expert in Energy and Comparative Environmental Law, described the proposal as a major legislative step since the enactment of the PIA.

He said increasing the provision from 3 per cent to 6 per cent was “fair, achievable, and consistent with the spirit of the Act.”

The retreat also recommended strengthening the HOSTCOM framework to ensure greater inclusion of women, youths, and other stakeholders in governance structures.

A communiqué issued at the end of the meeting stated that resolutions would be transmitted to the leadership of the National Assembly, President Bola Ahmed Tinubu, and other relevant authorities.