The Federal Government has cautioned oil-rich communities against infighting and disruption of oil production, as it could hinder their access to the Host Community Development Fund.
The Minister of State for Petroleum (Oil), Heineken Lokpobiri, made the appeal while speaking at the KEFFESO Stakeholders Forum in Yenagoa, Bayelsa State.
The forum, themed “Envisioning Sustainable Community Development in Niger Delta Host Communities: Identifying Challenges and Actualizing The PIA Paradigm Shift,” brought together key stakeholders to discuss strategies for maximizing the benefits of the PIA.
Lokpobiri noted that the PIA was enacted to bring stability to the oil sector and address longstanding grievances about underdevelopment in host communities.
However, he lamented that internal disputes among stakeholders have made it difficult for these communities to access and utilize the funds meant for their development.
Lokpobiri stressed that host communities must overcome internal conflicts that hinder their access to the funds.
“This KEFFESO Stakeholders Forum is to see how host communities can maximize the benefits from the Host Communities Trust Funds as prescribed by the PIA.
“If oil production is disrupted, everyone loses—the federal government, oil companies, and the host communities themselves. That is why host communities must collaborate with the government and oil companies to ensure smooth operations,” Lokpobiri stated.
Minister urges HCDTs to utilize funds
The Minister called on Host Community Development Trusts (HCDTs) in the Niger Delta to effectively utilize the three percent operational funds allocated to them under the Petroleum Industry Act (PIA) 2021 to drive sustainable development.
He further stressed that oil-producing communities should take ownership of the oil and gas facilities within their domains and work with relevant stakeholders to ensure sustainable benefits.
“As stakeholders who have their respective stakes in oil and gas operations in the country, we should work together to ensure that we maximize the benefits of oil and gas.”
Fossil fuels still relevant
The minister also highlighted the global push for cleaner energy, warning that the relevance of fossil fuels depends on their extraction and marketability.
“Don’t forget there is a global campaign against the continuation of production of fossil fuel.
“Fossil fuel will never go away. Fossil fuel will not have any value unless you bring it out of the ground or from the sea to the market, that is why we need this collaboration,” he said.
- In his remarks, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Omotsola Ogbe reaffirmed the board’s commitment to leveraging the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
- He noted that the NCDMB’s Community Content Guidelines are designed to ensure sustained community engagement and that local content is prioritized throughout the oil and gas value chain.
- Represented by the Board’s Director of Legal Services, Mr. Naboth Onyesoh, Ogbe praised the KEFFESO Host Community Development Trust for its efforts in ensuring that oil revenues benefit local communities.
Similarly, Mr. Ademola Adeyemi-Bero, MD/CEO of First E & P, described the KEFFESO Stakeholders Forum as a crucial platform for discussing and strategizing solutions to the challenges facing marginalized communities in the Niger Delta.
He reiterated the company’s commitment to fostering meaningful and sustainable development in the region.
