The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has given the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) 48 hours to dissolve a disputed Host Community Development Trust, citing concerns over its constitution and the representation of affected oil-producing communities.
The directive followed an investigative hearing by RMAFC’s Investment Monitoring Committee into the operations of Sterling Oil Exploration and Energy Production Company (SEEPCO) and its compliance with the Host Community Development Trust provisions of the Petroleum Industry Act.
During the hearing, the committee chairman, Ekene Enefe, ordered the NUPRC to dissolve the trust within 48 hours and also directed that outstanding obligations owed to the affected host communities be addressed.
RMAFC Chairman Mohammed Bello Shehu said the commission was committed to protecting the interests of oil-producing communities and ensuring transparency and accountability in the management of Nigeria’s petroleum resources. He said the investigation was aimed at ensuring that host communities receive the benefits guaranteed to them under the law.
The NUPRC, however, defended its handling of the trust. Its Director of Host Communities, Ufondu Ejiro, told the committee that the trust had been properly incorporated, funded and structured in accordance with the Petroleum Industry Act 2021. The regulator said it had processed documents covering community consultations, governance structures, funding arrangements and Community Development Plans.
Counsel to the affected communities, Peter Chukwudi, rejected the NUPRC’s position, arguing that some individuals recognised as community representatives were not accepted by the communities. He also alleged that adequate consultations had not been conducted before the trust was established.
The Anambra State Government also called for closer cooperation between the NUPRC and the state government in verifying community representation and monitoring statutory obligations. Other RMAFC commissioners similarly raised concerns about the regulator’s verification process and the level of engagement with affected communities.
Under the Petroleum Industry Act, petroleum operators are required to establish Host Community Development Trusts and contribute three per cent of their actual annual operating expenditure from the preceding year to the trusts. The funds are intended to finance development projects and promote peaceful relations between oil companies and their host communities.
RMAFC said it would conclude its investigation and submit its findings to the appropriate authorities, stressing that it would continue exercising its constitutional oversight responsibilities without fear or favour.
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