The Federal Government has called on oil companies operating in Nigeria to demonstrate genuine commitment to the development of their host communities through effective implementation of corporate social responsibility (CSR) projects as provided for under the Petroleum Industry Act (PIA).
Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bello Shehu, made the appeal during a mediation meeting between Sterling Oil Exploration and Energy Production Company (SEEPCO), Orient Petroleum, and their host communities in Anambra State.
The session, which was witnessed by the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), took place on Friday at the Commission’s headquarters in Abuja.
According to a statement by the Head of Information and Public Relations Unit of RMAFC, Maryam Umar Yusuf, Shehu said the Commission is committed to ensuring that oil companies respect the rights an welfare of the communities where they operate.
“This Commission will always stand for transparency and fairness. We expect oil companies to meet their obligations to the people in whose communities they operate,” he said, adding that the meeting was convened following allegations of neglect by some host communities.
Chairman of the Investment Monitoring Committee (IMC) of the Commission, Hon. Ekene Enefe, who presided over the meeting, expressed concern over SEEPCO’s record in meeting CSR obligations.
“Based on the facts before us with regard to CSR, what we see here is not satisfactory. SEEPCO still has a lot of jobs to do, and we would like to see real projects on the ground — roads, schools, hospitals, electricity, and jobs for the people in the host communities. This is the result we expect from the deductions made from operational costs,” he stated.
Enefe directed SEEPCO to submit audited reports of its three per cent host community expenditure since the commencement of the PIA, adding that oversight visits would be conducted to verify compliance. “We would like to tally the projects executed with the reported deductions. Our committee will not hesitate to exercise its oversight function to ensure that host communities benefit as the law demands,” he said.
Speaking on behalf of the communities of Ogwu Ikpele and Ogwu Aniocha in Anambra State, delegation leader Mr. Esumai Patrick lamented years of neglect.
“Our people live without good roads, schools, or hospitals while companies drill oil on our land. We welcome investment, but what we ask is fairness. We want to see electricity, jobs for our youths, and real development projects that will touch lives in our communities,” Patrick said.
Responding, SEEPCO’s representative, Barr. Emmanuel Ajang, assured that the company had commenced the implementation of its Host Community Development Trust and that identified projects would soon take off in line with the PIA.
On his part, Engr. Ayke Akuwezumba, representing Orient Petroleum, explained that the company had shifted focus to gas production through a partnership with Cottonwooden Gas Refinery. “We are channeling our resources to compressed natural gas (CNG) and liquefied petroleum gas (LPG) production, which will serve industries and households in the region. This is a sustainable plan with long-term benefits for the economy,” he said.
Executive Commissioner for Development and Production at the NUPRC, Mr. Enorense Amadasu, said the regulator was tracking the companies’ activities to ensure compliance. “We are reconciling their metering systems and ensuring that statutory obligations to the Federation are met. Community development projects under the Host Community Trust are also being tracked to guarantee compliance,” Amadasu stated.
