PIA: Reps To Probe IOCs’ Non-remittance Of 3% Host Communities Fund

The House of Representatives on Tuesday resolved to investigate International Oil Companies (IOCs) over non-remittance of three per cent of their annual operational expenditure to the Host Communities Development Trust Fund as stipulated by the Petroleum Industry Act (PIA).

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 Communities Development Trust Fund.

The House’s decision was sequel to the adoption of a motion sponsored by Hon. Victor Obuzor from Rivers at plenary on Tuesday.

Moving the motion, Obuzor said  the main objective of the remittance is to foster sustainable prosperity within Host Communities, provide

direct social and economic benefits and enhance harmonious coexistence.

He expressed concern that 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.

Obuzor noted that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which is mandated to facilitate speedy implementation of the 3% OPEX has awarded a penalty of $1,825 Million to the defaulting oil companies, which is to be paid at the rate of N52,500 per day as stipulated by the Petroleum Industry Act.

The House upon adoption of the motion the Committees on Host Communities Petroleum Resources (Downstream) and Petroleum Resources (Midstream), amongst others to conduct the investigation and report back within six weeks for further legislative action.