30, January 2025
Thank you for reading this post, don't forget to subscribe!Senator Ned Nwoko, Chairman of the Senate Committee on Reparation and Repatriation, has expressed concern over the lack of impact from International Oil Companies (IOCs) and Local Oil Companies (LOCs) operating in the Delta North Senatorial District despite the implementation of the Petroleum Industry Act (PIA) since 2021.
In a statement personally signed on Thursday, Nwoko lamented that the 3% development fund allocated to host communities under the PIA has not translated into meaningful progress for oil-producing communities in Delta North.
The Senator criticized the stockpiling of billions of naira intended for community development in the Consolidated Revenue Fund (CRF), emphasizing that Delta North cannot continue to suffer neglect while such resources remain unutilized.
He called on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), chaired by Engr. Gbenga Komolafe, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure that the funds accrued under the PIA are transparently managed and utilized for their intended purpose.
“The Delta North Senatorial District has yet to feel the impact of the IOCs and LOCs operating within its region, despite the implementation of the PIA since 2021. The 3% development fund allocated to host communities has not translated into meaningful progress,” Nwoko stated.
He noted that the enactment of the PIA was a landmark moment intended to address years of environmental degradation and neglect of host communities. However, Delta North is yet to see the promised infrastructural development and improved living conditions.
Nwoko emphasized the importance of transparency and accountability in the management of the development funds.
“The NUPRC and NMDPRA must ensure that the funds accrued under the PIA are transparently managed and utilized for the intended purpose. As custodians of this framework, they are obligated to ensure that host communities benefit directly from these resources,” he added.
The Senator highlighted several oil and gas companies operating in the Delta North region, including:
Nigerian Agip Oil Company (OML60)
Platform Petroleum Limited (OML38)
Sterling Energy Exploration (OML143)
Pan Ocean Oil Cooperation (OML147)
Midwestern Oil Company (OML56)
Energia Limited (OML56)
Opac Refinery (Downstream)
PowerGas Ebedei Limited (Downstream)
He revealed that the cumulative 3% remittance from these companies amounts to an estimated 30% of their operational costs annually, representing hundreds of billions of naira. These funds, he stated, are more than sufficient to address critical infrastructure projects, including the Okpai Independent Power Plant and the Ogwashi-Uku Dam.
Senator Nwoko assured his constituents of his commitment to holding relevant agencies accountable and ensuring the funds are used for development:
“I will engage with Senate Committees and invite the management of these oil companies to provide detailed reports on their contributions and how the funds are being allocated. I will work closely with host community boards to ensure these resources are directed toward healthcare, education, infrastructure, and other critical needs.”
He concluded by pledging to ensure that the funds are put to work for the benefit of Delta North communities, paving the way for a brighter and more prosperous future.
(www.naija247news.com)
