By Elzabeth A.
HCDTS tasks Niger Delta States on 13 per cent derivation
States Government in the Niger Delta region have been urged to remit part of the 13 per cent derivation fund from the federal government into the Host Communities Development Board of Trustees (HCDTS), to enable the board execute developmental projects in host communities.hcdts, niger
President of the ‘Oil and Gas Host Communities’, His Highness, Dr Benjamin Style-Tamaranebi made the call at a town hall engagement with HCDTS and Settlors at the weekend in Port Harcourt.
According to him, the implementation of 3 per cent funding as stipulated by the Petroleum Industry Act had began to promote development across host communities.
Tamarenebi, however, expressed dismay over alleged politicization of the 13 per cent derivation originally set aside by the federal government for the development of host communities.
“Recall, that we have 13 per cent derivation fund expected to be shared amongst the states and host communities.
“State governments have politicized the fund without recourse to the real host communities that produce oil and gas.
‘This shortchange was the core reason why we engaged various levels of agitations which eventually led to establishment of the Niger Delta Development Board(NDDC) and the amnesty program for our youths,” he said.
The president therefore, urge state governments in the region to take decisive steps so as to ensure that the 13 per cent derivation attract positive impacts to host communities
“The 13 per cent derivation is key to the overall development of communities, now that the PIA is on board, we call on the affected state governments to respectfully release part of the 13 per cent derivation to the HCDTS to enable them drive more developmental projects to the grassroots,” he added.
Tamarenebi also condemned needles leadership tussles within some host community boards while also urging disputing boards to take advantage of the dispute resolution centre established by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) located in Yenagoa, Bayelsa.
He also advised community leaders and stakeholders to continue to secure the oil assets in their domains to safeguard the nation’s economy.
On the issue of administrative spending by the HCDTS, the president urged the board to strictly adhere to its statuary spending plan with 75 per cent for community development, 20 per cent for investment and 5 per cent for administrative funding.
Earlier, Mrs. Oritsemeyiwa Eyesan, Chief Executive of Director, NUPRC has described the PIA as a landmark achievement in Nigeria’s oil and gas sector.
Represented by an assistant Director in the commission, Mr Success Ikpe, the Director said that chapter 3 of the PIA specifically introduced a structured and transparent framework for Host Community Development Trusts (HCDTs).
According to her, the the provisions of the Act has ensured that host communities benefit directly from upstream petroleum operations through socio-economic development projects, environmental management, and capacity-building programs.
“The success of HCDTs requires collective commitment from all stakeholders including the government, traditional rulers, oil companies, and the communities themselves.
“The NUPRC remains dedicated to regulatory oversight, policy support, and technical assistance to ensure host communities thrive alongside the petroleum industry.”she said.
