Reps decry delay on HOSTCOM fund regulations

The House of Representatives Committee on Host Communities has decried the delay by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in releasing regulations guiding the Midstream Host Community Development Trust Fund.

The fund, which was prescribed by the Petroleum Industry Act, 2021, to protect communities hosting oil and gas midstream facilities such as refineries, pipelines and gas processing facilities is yet to take off due to the absence of regulations by NMDPRA.

Speaking at a stakeholders’ consultative forum on midstream petroleum host community development trust regulations, the Chairman, House Committee on Host Communities, Rep. Dumnamene Dekor, said it was unacceptable that over two years after the PIA was signed into law, the regulations were not ready.

He therefore urged the NMDPRA to urgently conclude the process and make it operational, adding that the wellbeing of petroleum host communities is essential to Nigeria’s desire as a progressive and prosperous nation.

“The oil and gas sector contributes over 60 per cent of total government revenue, and about 90 per cent of total export earnings of this country.

Yet, the country has failed to effectively deliver the elements of the resource exploitation to host communities for nearly seven decades.

He said the failure has had enormous consequences on the development of the oil and gas sector and the overall economy of the country.

He said; “Presently, the PIA 2021 creates an opportunity for host communities to be directly involved in shaping how their developmental needs are addressed, particularly, through the establishment and operationalisation of host communities’ development trust.

“Our committee is not particularly pleased that NMDPRA is only just at the stage of developing regulations to guide the implementation of the HCDT nearly three years after the PIA was signed into law.”

Speaking earlier, the Authority Chief Executive, Engr. Farouk Ahmed, explained that the consultative forum would enable NMDPRA to collate ideas, positions and suggestions on the proposed draft regulations.

Ahmed, who was represented by the Executive Director, Distribution Systems, Storage and Retail Infrastructure, Mr Ogbugo Ukoha, explained that the main issue on the draft regulations in the feedback received from stakeholders concerned who should qualify in the applicability of the host community to either the midstream or the downstream.

He pointed out that previously, host community applied only to upstream host communities but has now been extended to the midstream sector of the industry.