To foster enhanced collaboration, sustainable impact, and overall well-being of communities within the area host operations of Oil Mining Licence (OML) 148 asset, Sahara Group company, Enageed Resources Limited, has inaugurated the Host Communities Development Trust (HCDT) Board.
Announcing the formal inauguration of the Board in Benin City, Edo State, the company said this was in compliance with the provisions of the Petroleum Industry Act (PIA).
The PIA requires oil and gas companies operating in the Niger Delta region to liaise with the communities in the immediate areas of their operations to constitute a Host Community Development Trust.
Under the Act, operating companies are expected to contribute 3% of their Operating Expenses (OPEX) into the Host Communities Development Fund to drive socio-economic development across different parameters.
The Trust Board composed of the representatives of the Host Communities is mandated to utilise the funds contributed by the oil and gas companies to carry out development projects capable of impacting the quality of life of the people.
Speaking at the inauguration of the Board in Benin City, Yaro Aminu, who represented the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, said the Commission had developed robust implementation strategies for the Trusts to address restiveness among the host communities.
The successful implementation of the strategies, Aminu said, would guarantee seamless operations of the Exploration and Production Companies, while also providing an enabling environment for the sustainable development of the country’s hydrocarbon resources.
“The Commission would also like to draw the attention of members of the Board of Trustees to the provision of Section 257 (2) & (3) referring to vandalism, sabotage, civil disobedience and the associated deductions from the accrued 3% that may arise therefrom and the need to stem the negative tide and foster prosperity in our various host communities,” he said.
Umar Mohammed, who represented the Chief Upstream Investment Officer, NUIMS, Bala Wunti, the HCDT as established under the Petroleum Industry Act (PIA) 2021, reflects the government’s commitment to ensuring operations benefit the Host communities in tangible and long-lasting ways.
Mohammed said the NNPC’s vision for social intervention underscores the need for companies to operate in an ethical and sustainable manner and deal with the environment and social impacts occasioned by their activities.
To ensure transparency and accountability, he said the trust was set up to be managed by the Board of Trustees having representatives of the Host communities and a secretary from the settlor, all who are of high integrity and professional standing,” he added.
The Edo State Commissioner of Mining and Energy, Enaholo Ojiefoh, commended Enageed Resources for spearheading the setting up of the first HCDT in Edo State.
He said this was characteristic of the commitment of Enageed’s parent company, the Sahara Group, to a “robust, responsive, collaborative and sustainable community relations.”
Ojiefoh said the Edo State government would continue to ensure the communities’ support to Enageed Resources.
The Commissioner appreciated the communities for the success stories received from Enageed, noting that the government would continue to work towards ensuring that host communities were primed for attracting investors to operate in Edo State.
Also speaking, the Edo State Commissioner of Budget and Planning, Adaeze Aguele-Kalu, urged the communities to continue to show their unwavering support to the company, she assuring that the Edo State government would always give their backing.
The Head of Stakeholder and Community Relations, Babatomiwa Adesida, said Enageed Resources followed clear guidelines, expectations, and requirements provided by NUPRC and NUIMIS when appointing the Board of Trustees, as shown by the wealth of educational qualification, experience and community exposure constituting the group.
Adesida said: “We are confident that the Board of Trustees will further transform the impact of our collaboration with all stakeholders in the communities contributing and benefiting transparently and equitably.”
In his remarks, the Chairman of the AJOAKOKAJIM Host Communities Trust, Alexander Orogun, said the Constitution of the Board was the boldest and most laudable step of the government to overhaul the Nigerian petroleum sector.
He said the conceptualization through the legislation and subsequent implementation of the PIA which was signed into law on 21st August 2021 was commendable.
Also, he said the implementation of the MoU by Enageed Resources was a dream come true, adding that with the crop of the carefully nominated Board members, the host communities would witness massive infrastructural development in the rich but impoverished communities of OML 148 Host Communities.
Scott Omasan, the Ajoki Community Secretary, spoke briefly, saying the communities have looked forward to the Board Inauguration and thanked Enageed Resources for their continuous support towards the community.
The implementation of the PIA in the communities would ensure continuous sustainable development in the community and increase pipeline security in the communities.
