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Host Communities threatens to shutdown oil production over 3% fund

By Peregba Jerry

Oil production came under threat at the weekend as the crude oil host communities vowed to stop production activities if the Nigerian Upstream and Downstream Petroleum Regulatory Commission (NUPRC) fails to desist from actions that could reduce or create barriers for the 3% Host Community fund.

The 2021 Petroleum Industry Act (PIA) stipulates that the host communities get 3% of operation cost from the oil companies in their areas.

The communities warned the commission to desist from activities that take a toll on the fund such as expenditure on HostComply portal.

The warning was contained in the statement by a foremost Youth Leader, Mr Christopher Tuduo, His Royal Highness, Theophilus Moses, chairman Dodo River Rural Development Authority, Francis Amamogiran, Hon. Target Segibo of Oporoma Rural Development Authority and former Chairman of Koluama Clan Oil and Gas Committee, Engr Ebimielayefa Dick- Ogbeyan, jointly issued to newsmen.

According to the statement, NUPRC must reverse any action and regulations adversely affecting the host community to avoid a severe backlash.

The host communities, said the leaders in the statement, are often excluded from the decision-making process, which results in the use of public resources to defend decisions in newspapers.

The communities declared their readiness to take decisive action and escalate their efforts to address the concerns of the oil and gas communities if the NUPRC fails to treat the matter as an emergency.

Emphasizing their proactive engagement in pacifying the youths across various communities since the signing of the Petroleum Industry Act (PIA), they underscored that the stability of oil operations could be compromised if NUPRC allows the situation to deteriorate further.

The communities asked NUPRC to recognize the urgency of the matter and take immediate, substantive steps to resolve the concerns at hand.

They warned that improper handling of host community issues could have negative repercussions on Nigeria’s oil production and economy.

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