The Host Communities Development Boards of Trustees have called on the Niger Delta state governments to remit a percentage of the 13 per cent derivation fund they receive from the Federal Government into the Host Community Development Trusts to accelerate development in oil-bearing areas.
The National President of Host Communities of Nigeria Producing Oil and Gas, Benjamin Tamaranebi, made the call during a town hall engagement on Saturday with HCDTs and settlors (oil companies) in Port Harcourt, Rivers State.
Tamaranebi said while the three per cent Host Community fund provided under the Petroleum Industry Act was already driving development in many communities, additional support from the 13 per cent derivation would significantly enhance impact.
He argued that the 13 per cent derivation, which accrues to oil-producing states, was originally intended to support host communities but had been politicised.
“Remember, we have 13 per cent derivation funds coming to the communities. That fund was not left for only the state governments, but for the development of 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 why we started out to fight. Through our struggle, we have the NDDC; through our fight, the amnesty programme came on board for our youths.
“Now we are looking forward to the state governments to do the same on the 13% derivation. The 13 per cent derivation is key and paramount to the lives of host communities.
“Now that the PIA is on board, we call on the state governments to respectfully release part of the 13% derivation to the Trust to complement it so that we can work together,” he said.
He lamented that internal litigations over leadership positions within some HCDTs had slowed the execution of projects funded through the three per cent PIA provision. “Such things will not bring community growth or development,” he said.
Tamaranebi disclosed that the Nigerian Upstream Petroleum Regulatory Commission had established a dispute resolution centre in Yenagoa, Bayelsa State, urging communities and oil companies with grievances to utilise the platform.
He also cautioned trustees against exceeding the statutory five per cent administrative cost ceiling stipulated under the Act.
“The Act made provision that 75 per cent of the funds should go to community development projects, 20 per cent for investments, while five per cent is for administration costs, but most committees want to go beyond the five per cent. If we continue to tamper with the 75 per cent, we deprive ourselves of that development,” he warned.
He further advised community leaders to safeguard oil infrastructure within their domains, citing provisions of Section 257(2) of the PIA on liability for vandalism.
“If a pipe has been broken and oil flowed from the pipe for one day, all the money gotten for the year will not be enough to repair. So guide our facilities jealously,” he said.
Tamaranebi explained that the town hall was convened to sensitise communities on the workings of the PIA and the operations of the Host Community Development Trust framework.
In her keynote address, the Chief Executive of the NUPRC, Oritsemeyiwa Eyesan, represented by an Assistant Director, Success Ikpe, described the enactment of the PIA as a landmark reform in Nigeria’s oil and gas sector.
She noted that Chapter Three of the Act introduced a structured and transparent framework for Host Community Development Trusts, ensuring that host communities directly benefit from upstream petroleum operations through socio-economic projects, environmental management and capacity-building programmes.
“The success of HCDTs requires collective commitment from all stakeholders — government, traditional rulers, oil companies and the communities themselves.
“The NUPRC remains dedicated to regulatory oversight, policy support and technical assistance to ensure host communities thrive alongside the petroleum industry,” she said.