EBENEZER ADUROKIYA, Warri
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has clarified that deductions from the three per cent Host Community Development Trust (HCDT) fund, as provided under the Petroleum Industry Act (PIA), can only be made strictly in line with Section 257(4) of the Act.
The Commission gave the assurance at a one-day sensitisation workshop for settlors, HCDT organs and petroleum host communities held in Delta State. The event attracted traditional rulers and community leaders from across the state.
Speaking at the workshop, NUPRC’s representative, Engineer Kingsley Okundia, explained that deductions from the fund are only permissible where petroleum facilities within a host community are damaged and funds are required for their maintenance or replacement.
“If you carefully look at the PIA, the only section where deductions are allowed is Section 257, subsection (4). It also clearly states the reason such deductions can be made, and it must not be done in secret. The community must be informed why its money is being deducted,” he said.
Okundia further explained that the three per cent contribution is calculated based on the settlor’s operational expenditure for the preceding year, as reflected in audited financial statements submitted to the government and the NUPRC.
“As such, there is no issue of short-changing anybody,” he added.
He urged Niger Delta host communities to formally engage settlors for clarification on any concerns and to escalate unresolved matters to the Commission’s headquarters in Abuja, assuring them that all petitions are treated with urgency.
“We do not take petitions from communities lightly. There is a dedicated section responsible for handling such issues,” he said.
Earlier, High Chief G. I. O. Bucknor of Mecco and Marines Holdings Limited said the workshop underscored the importance of community participation, accountability and strict compliance with the PIA to ensure that oil-producing communities in the Niger Delta benefit meaningfully from petroleum operations.
Chairman of the event, the Pere of Akugbene Mein Kingdom, His Royal Majesty Kalanama VIII, said host communities have critical responsibilities under the PIA through the HCDTs, including governance, infrastructural development, peace and security, environmental protection and pipeline surveillance.
He noted that increased community involvement, alongside the engagement of Tantita Security Services, has significantly reduced pipeline vandalism in the region.
“We can attest to the fact that since the implementation of the PIA, we have recorded almost zero pipeline vandalism in our communities,” he said, calling on royal fathers and community leaders to continue to promote peace across the Niger Delta.
Also speaking, the Director, Government Office Annex, Warri, Mrs Violet Onowakpokpo, said the PIA reflects the Federal Government’s commitment to addressing long-standing grievances in oil-producing areas and ensuring that host communities are not marginalised.
She disclosed that plans were underway to establish a complaints office to address host community-related issues.
In a goodwill message on behalf of the Delta State Commissioner for Oil and Gas, Hon. Peter Okagbare Uviejitobor, the Director of Local Content, Mr Emmanuel Ofomiyuaju, reaffirmed the state government’s support for initiatives that strengthen cooperation between operators and host communities in the Niger Delta.
However, community leaders at the workshop raised concerns over delayed payments and alleged deductions from the three per cent fund.
Bashorun Askia Ogieh of the Uzere community lamented the absence of senior NUPRC executives at the event and alleged that HCDTs had not been credited since 2022.
Representatives of host communities from Isoko-Irri and Idheze also protested deductions from the fund, demanding that “money deducted at source be refunded to the communities.”
Similarly, the Chairman of the Ndokwa HCDT, Comrade Ameachi Asugwuni, raised concerns over tax exemptions, access to settlors’ audited financial statements and persistent delays in payment, insisting that the law clearly states that the Host Community Fund shall not be subject to taxation.
For a better society
Follow us across our platforms:
Instagram – https://www.instagram.com/championnewsonline/
Facebook – https://web.facebook.com/championnewsonline
LinkedIn – https://www.linkedin.com/company/champion-newspapers-limited/
https://x.com/championnewsng/
You can also like and comment on our YouTube videos.
https://youtu.be/QIBfD1tT80w?si=R4Qf3so2LxYu3GC2
