The Nigerian Upstream Petroleum Regulatory Commission stated it had identified 31 competent fund managers to invest 20% of the 3% yearly funds accruing to Host Communities Development Trust Funds.
This was disclosed by the Chief Executive Officer of NUPRC, Engr. Gbenga Komolafe in his keynote address during a Town Hall meeting held at Watbridge Hotels, Uyo, Akwa Ibom State on Friday, according to The Punch.
Komolafe, who was represented by the Coordinator of NUPRC in Eket, in Akwa Ibom State, Mr Etukudo Williams noted that several Community Trusts have already begun to engage with fund managers.
He said, “To manage the funds, which is 20% of the 3% OPEX, the commission has profiled 31 competent fund managers to invest the funds for the Host Communities Development Trusts. Some of the incorporated HCDTs have already started the process of engaging some of these fund managers.”
According to Komolafe, the commission has approved the incorporation of 167 Host Community Development Trusts, with 124 completely incorporated with the Corporate Affairs Commission and 70 accounts sponsored by oil corporations.
Commenting, the national chairman of the Host Communities of Nigeria Producing Oil and Gas, High Chief Style Benjamin Tamaran-Ebi said that oil companies operating in Nigeria have begun the annual three percent contribution to Host Communities Development Trusts required by the Petroleum Industry Act 2021.
He stated that 70 of the 167 already incorporated trusts had received payments totaling more than N80 billion, with a dollar component of more than $150 million for the years 2021-2022.
“We have verified that 70 Trusts out of 167 incorporated have been funded with the sum of N80bn and the dollar component is more than 150m dollars.
“So, comparatively we are saying that these funds are going directly to the communities for sustainable development and with this transparency within a gap of five years, there is going to be a lot of transformation in our various communities.
“This is just for 2021–2022. The year 2023 funds are still being expected. We are here to tell the communities to work seamlessly to protect the projects so that the government can entrust more to the communities”, he said.
Meanwhile, the Akwa Ibom State Commissioner for Environment and Mineral Resources, Etim Uno stated that members of the Board of Trustees, the Management Committee, and the Trust’s Advisory Committees must collaborate to ensure the smooth and timely implementation of the PIA in impacted areas throughout the state.
Uno who was represented by the Head of Petroleum Resources in the Ministry, Engr. Anietie Emah raised concern that some concerns, such as the desire to chair or serve on any of the communities’ trusts, had delayed the PIA implementation process in some Akwa Ibom oil and gas villages.
He said, “We need to understand that everybody cannot be chairman of the BOT, or Chairman of the Management committee at the same time, it is not possible. Please, members of the BOT, let the people you represent understand what is happening.”
