Komolafe: NUPRC Has Attracted N200bn for Devt of Host Communities

*Says disbursement of funds being delayed by litigious host community actors

*Swears in Falana, Osahor, 25 others as commission’s ADRC Body of Neutrals

Peter Uzoho

The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe, has disclosed that the commission has already facilitated and attracted funds totalling about N200 billion for the development of oil and gas host communities in the country.

He explained that the fund comprised N60 billion and another $100 million, adding that it amounted to N200 billion when calculated on the prevalent foreign exchange rate.

Komolafe revealed this Monday at the inauguration of the Body of Neutrals of the Alternative Dispute Resolution Centre (ADRC), at the NUPRC Lagos Regional Office.

He also lamented Nigeria’s low reserve to capital expenditure (Capex) ratio despite the country’s over 37 billion barrels oil and 209 trillion cubic feet (TCF) deposits.

The Commission Chief Executive equally at the event swore in 27 members of the Body of Neutrals for the NUPRC’s ADRC including human rights lawyer, Mr. Femi Falana and a former Director of the defunct Department of Petroleum Resources (DPR)/Chairman of Energia Nigeria Limited, Mr. George Osahor.

Komolafe explained that the N200 billion already attracted for host community development was achieved through the implementation of the Petroleum Industry Act (PIA).

The PIA which was signed into law in August 2021, among other things provided for the host community development fund which is to be funded with a pool of three per cent of the operating companies’ capital expenditure (Capex) in every preceding year. The fund, as provided by the PIA, is to be managed by the Host Community Development Trust (HCDT) which are selected by members of each of the host communities.

He said the intent of the commission’s ADRC was to look for a much peaceful, faster and cheaper way of resolving disputes in the oil and gas industry, particularly issues relating to host communities, to engender a conducive operating environment for operators.

He said the idea was to a large extent help to improve Nigeria’s oil and gas production and ultimately lead to increased revenue to the federation’s account.

He stated, “Today’s event is really very significant because we are all concerned about improving our daily national oil and gas production. I’m going to speak about the nexus between achieving our much desired optimisation of our national oil and gas production. We all are aware that as a nation that is well endowed with huge hydrocarbon resources of over 37 billion barrels of oil and 209tcf of gas, that we suffer at a very low reserve to capex ratio in the country.

“And one of the reasons that have led to that is the menace of crude oil theft aside very hostile operating environment. Of course, the Petroleum Industry Act under Section 235 provides robustly the dealing with the challenges of hostile communal environment and of course, that provision speaks about inclusiveness.

“Now, for us as a commission, we’ve made efforts in achieving effective implementation of the robust provisions of the Petroleum Industry Act which is a very laudable provision. As at today, we have facilitated about N60 billion. We’ve created over $100 million. And these funds are meant to add value to the host communities, to facilitate conducive operating environment for the operators so that we can achieve the intended optimisation of our hydrocarbon endowment in the nation”.