Release N27.6bn Gas Flaring Penalties To Host Communities, Reps Ask CBN

The House of Representatives has asked the Central Bank of Nigeria (CBN) and the Ministry of Finance to immediately release the approved N27.6 billion gas flaring penalties to host communities as prescribed by the Petroleum Industry Act 2021.

The resolution was sequel to the adoption of a motion sponsored by Hon. Awaji-Inombek Abiante from Rivers State at plenary on Thursday.

Moving the motion, Abiante said the previous administration of Muhammadu Buhari approved the sum of N27.6 billion which is part of funds domiciled with the Central Bank of Nigeria as gas flaring penalties, to host and impact communities of oil-producing areas.

The lawmaker said over N100 billion has so far been received as gas flaring penalty or fines by the Department of Petroleum Resources and paid into the Central Bank of Nigeria.

He said Section 104 (4) of the Petroleum Industry Act 2021 including other statutory international laws demands that monies collated as gas flaring penalties be paid to host communities for environmental remediation and relief of those communities.

RELATED

Tinubu’s Communication Team Reviews Performance, Sets New Targets

1 hour ago

Tinubu Backs Qatari Investment In Nigeria’s Agriculture, Petrochemicals

2 hours ago

Abiante expressed concern that despite the approval of N27.6 billion to be paid to host communities, the Central Bank of Nigeria, Ministry of Finance and relevant government agents are yet to comply with the directive in total disregard to statutory provisions.

“Also concerned that the adverse effect of gas flaring on oil-producing areas has continued to hamper the agricultural livelihood of host communities which fuels vandalism and agitations.

“Worried that the non-release of the money to host communities not only negates statutory provisions as well as government directives but is also a major factor leading to continuous adverse effects of environmental degradation and the consequent sufferings and agitations.

“While the money collated as gas flaring penalties may amount to over N100 billion, it is equally legitimate and imperative to release part of the total funds already approved by the government to the right people to fulfil the provisions of the law to reverse the adverse impact of gas flaring as well as guarantee development in the area,” he argued.

Adopting the motion, the House urged the federal government to hasten the approval for the release of the balance of the funds to host communities and mandated the Committee on Host Communities to ensure and monitor implementation.