The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has issued a 48 hours ultimatum to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to dissolve the Host Community Development Trust (HCDT) constituted for the Sterling Oil Exploration and Energy Production Company (SEEPCO) host communities.
The Chairman of the RMAFC, Dr. Mohammed Bello Shehu, issued the ultimatum on Thursday in Abuja during the investigative hearing of the Commission’s Investment Monitoring Committee into the operations of SEEPCO and the implementation of the HCDT provisions of the Petroleum Industry Act (PIA).
Shehu, who said the ultimatum was part of the Commission’s commitment to protecting the interests of Nigeria’s oil-producing host communities, maintained that RMAFC would continue to strengthen oversight of operators and institutions responsible for ensuring the equitable delivery of benefits from the nation’s natural resources.
Describing the investigative hearing as an important national service and a critical national responsibility, the Chairman commended the Committee for its diligence and urged its members to remain resolute in their assignment.
RMAFC’s constitutional mandate, he noted, requires firm oversight, transparency and accountability in the management of national revenue assets.
He expressed confidence that the investigation would strengthen trust in the petroleum sector and ensure that host communities receive the full benefits guaranteed under the PIA.
In his presentation, the Chairman of the Investment Monitoring Committee, who is also the Federal Commissioner representing Anambra State, Dr. Ekene Enefe, reviewed SEEPCO’s compliance with the statutory provisions governing Host Community Development Trusts.
Reaffirming the Committee’s resolve to ensure full compliance with the Petroleum Industry Act, Dr. Enefe stressed that host communities must no longer bear the environmental and social impacts of oil exploration without corresponding development
He declared that the Commission would vigorously pursue its constitutional mandate to ensure that operators and regulatory institutions fulfilled their obligations to host communities and the Federation.
The Committee expressed strong concerns over SEEPCO’s repeated failure to honour invitations to appear before it despite previous engagements, maintaining that the Commission would not tolerate attempts by any operator to evade legitimate oversight.
Addressing the NUPRC, Enefe maintained that RMAFC’s constitutional mandate required it to hold every institution within the petroleum value chain accountable for the effective discharge of its statutory responsibilities.
He consequently directed NUPRC to immediately address concerns surrounding the HCDT established for the affected communities, declaring: “We are going to give you 48 hours to dissolve that host community development trust.”
He further condemned SEEPCO’s failure to meet its obligations to host communities and issued a firm ultimatum, stating: “We are going to write them and we are going to give them an ultimatum to pay up what is owed the host communities.”
Dr. Enefe added that the Committee would conclude its investigation and forward its findings to the appropriate authorities, emphasizing that RMAFC would discharge its constitutional oversight responsibility without fear or favour.
Earlier, the NUPRC delegation, led by the Director, Host Communities, Mrs. Ufondu Ejiro, presented the Commission’s position on the implementation of Host Community Development Trusts under the PIA.
She informed the Committee that the Trust had been duly incorporated, funded and structured in accordance with the law, explaining that the NUPRC had received and processed documentation relating to community consultations, governance structures, funding matrices and Community Development Plans.
She also presented records of contributions made into the Trust, maintaining that the Commission carried out its responsibilities within the framework established by the PIA and the Host Community Development Regulations.
Responding on behalf of the affected host communities, Mr. Peter Chukwudi, strongly disputed the submissions made by NUPRC, insisting that the communities neither recognised several of the persons presented as their representatives nor accepted that adequate consultations took place before the constitution of the HCDT.
He further questioned the level of development recorded in the communities despite years of oil production and urged the Committee to ensure that the concerns of the affected communities were fully investigated.
Also responding to NUPRC, the Commissioner for Petroleum and Mineral Resources, Anambra State, Prof. Charles Ofoegbu, called for closer collaboration between NUPRC and the Anambra State Government in verifying community representation and monitoring compliance with statutory obligations.
He urged greater transparency in the computation of statutory contributions, operational expenditure and the execution of community development projects, stressing that the State Government has a responsibility to protect the interests of its oil-producing communities.
Other Federal Commissioners who contributed to the deliberations included the representative of Rivers State, Amb. Desmond Akawor, who observed that there appeared to be a disconnect between the regulator and the affected state governments.
Akawor, who pointed out that effective oversight would require closer collaboration and direct engagement with operators, expressed concern over SEEPCO’s absence from the hearing and urged all parties to cooperate fully with the Committee’s investigation.
Also speaking, the Federal Commissioner representing Kogi State, Abdulazeez Idris King, questioned the effectiveness of NUPRC’s verification process, observing that reliance solely on documents submitted by operators may not sufficiently establish that genuine consultations had taken place with host communities before their representatives were recognised.
In her remarks, the Federal Commissioner representing Jigawa State, Hauwa Umar Aliyu, emphasized the need for regulatory agencies to maintain the highest standards of professionalism and impartiality in the discharge of their statutory responsibilities.
She stressed that regulators must inspire public confidence by ensuring that the interests of host communities received equal attention alongside those of operators.
Following extensive deliberations and presentations, Dr. Enefe assured stakeholders that every submission and documentary evidence presented before the Committee would be subjected to careful examination.
He reiterated that the Investment Monitoring Committee would continue to pursue its constitutional mandate until all relevant facts had been established and appropriate recommendations made in the interest of the Federation and the affected host communities.
The hearing forms part of RMAFC’s ongoing oversight initiative aimed at strengthening transparency, promoting accountability and ensuring that host communities derive the full benefits guaranteed under the Petroleum Industry Act.
