A trust fund would be set up by the Federal Government to take care of the 3% allocated for the host communities as provided for in the Petroleum Industry Act (PIA) to prevent any crisis in the implementation of the act, Minister of the Niger Delta, Godswill Akpabio, has said.
Akpabio said this to journalists in Abuja on Thursday at a news conference orgnised by the Presidential Media Team in the State House.
He said the Ministry of Niger Delta would ensure that the funds are used on executing tangible projects for the host communities, rather than disbursing among the elite class from such communities.
“I think the major problem is not about the disbursement but how it will impact the communities,” the minister said.
“These funds will be managed by the host communities themselves and the 3% will go into a trust fund for the various communities who are the original indigenes.
“We are excited about the Petroleum Industry Act, our job is to help facilitate the effective participation of the host communities. The trustees of the fund will come from the actual community.
President Muhammadu Buhari sign the Petroleum Industry Bill into law on Monday, after it was passed by the National Assembly in July.
The signing provoked criticisms from leaders of oil and gas host communities, who argued that the three percent provision was inadequate to compensate for the consequences of exploration and production activities in their areas.
“PIA when implemented is going to assuage the feelings of the host communities because they never had any real benefit in over 50years. The major thing now is to use it well for their own benefit.”
“The problem of the host community fund is not the percentage neither is it the problem money. But how the money will be utilized judiciously and the same time, in a way where there is no acrimony,” Akpabio said.
“I don’t want that will break or cause communal clashes. So, I believe strongly as a ministry that is responsible for the peace for the region, that we will take interest in how certain decisions are made as to who is a host community and who are those that should manage the fund.
“The law would have provided for this but at the same time, human being must also assist in the law in such a way that there is no acrimony. This PIB has been a game on the drawing board.
“The Petroleum Industry Act PIA when implemented is going to assuage the feelings of the people of the host communities because they never had half a percent when oil when discovered in 1956 in Olobri. That is why I said that it is not the percentage that is the issue. Some communities could not even do this solar-powered toilet, some had no drinking water, even water tankers supplying them water failed because they had oil exploration and exploitation had destroyed their water system.
“But now with the PIA, they would be able to do certain things for themselves without waiting on oil companies, the federal government, or the state to do it for them.
“My prayer is that the people would see this as a major step. People are arguing about percentages, I am not interested in that. We would manage this 3% but the major thing is to use it well. Even the small percentage that use to come to the NDDC, at least, they did not utilize it well.
“I believe the host communities would list out their problems, come together in unity, and justify this action of Mr president and this action of Nigerians.”
