Agitations for a direct allocation from the 13 per cent oil derivation fund resurfaced at the weekend as oil-bearing communities in the Niger Delta called on state governors to remit part of the funds to Host Community Development Trusts established under the Petroleum Industry Act.
The demand came during a town hall meeting involving the Nigerian Upstream Petroleum Regulatory Commission, representatives of host communities and oil firms in Rivers State.
The National President of Host Communities of Nigeria Producing Oil and Gas, Dr Benjamin Style Tamaranebi, accused state governments of politicising the 13 per cent derivation fund, insisting that oil-producing communities have yet to benefit commensurately from resources extracted from their lands.
He said, “Thirteen per cent derivation was not meant for state governments alone. It was meant for the development of host communities.
“Now that the PIA is on board, we are calling on governors to release part of that fund to the Host Community Development Trusts to complement what the law has provided.”
Tamaranebi linked past agitations in the region to the establishment of intervention agencies such as the Niger Delta Development Commission and the Presidential Amnesty Programme, describing the latest demand as part of ongoing efforts to achieve resource justice and inclusive development.
He, however, cautioned executives of the trusts against breaching statutory spending provisions under the PIA, noting that five per cent of HCDT funds is allocated for administrative expenses, 75 per cent for projects and 20 per cent for investments.
“If we tamper with the 75 per cent meant for projects, we are depriving ourselves of development,” he warned.
Meanwhile, the Commission disclosed that 155 Host Community Development Trusts have been incorporated across the Niger Delta since the implementation of the PIA. Of the number, 79 have received funding through the mandatory three per cent operational expenditure contributions from oil companies, also known as settlors.
Representing the Commission Chief Executive, Mrs Oritsemeyiwa Eyesan, an Assistant Director at the Commission, Mr Success Ikpe, said the regulator is currently overseeing about 663 projects being executed by various trusts.
He added that a digital reporting platform, “HostComply”, had been introduced to monitor the activities of the trusts in real time and enhance regulatory compliance.
Despite the progress recorded, the Commission acknowledged lingering concerns bordering on governance, accountability, bureaucratic bottlenecks and internal disputes within some communities.
It outlined measures to address the challenges, including capacity building for board members, improved stakeholder engagement, structured dispute resolution mechanisms and independent monitoring frameworks.
The Commission urged stakeholders to collaborate in ensuring that the PIA delivers sustainable and inclusive development to host communities in the Niger Delta.
