By Chimdiogo Amuh 

The National President of Host Communities of Nigeria Producing Oil and Gas (HOSTCOM), Dr. Benjamin Tamaranebi, has warned traditional rulers in oil-producing communities against bidding for contracts meant for projects approved in their respective domains, saying such actions violate the Petroleum Industry Act (PIA).

Tamaranebi issued the warning during a town hall meeting organised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in collaboration with HOSTCOM Project Management and Advisory Konsult Ltd for members of the Host Communities Development Trusts (HCDTs) Board of Trustees and settlors from Imo and Abia states. The event was held in Owerri, Imo State.

He explained that as heads of the Host Communities Development Trust Boards of Trustees, traditional rulers are expected to oversee the award and execution of projects and ensure transparency and accountability. According to him, bidding for or awarding contracts to themselves would amount to a conflict of interest and compromise the integrity of the process.

Tamaranebi noted that the Petroleum Industry Act, which provides for the allocation of three per cent of oil companies’ annual operating expenditure to host communities, has brought significant relief to many oil-producing areas.

Delivering a keynote address, the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission, Mrs. Oritsemeyiwa Eyesan, described the PIA framework as a new dawn for host communities. Represented by Atama Daniel, she urged communities yet to receive their 2024 funding to formally lodge complaints with the commission.

In his remarks, the Deputy Executive Director of the Environmental Defenders Network (EDEN), Johnson Abiye, called on regulators to ensure effective and transparent implementation of the Petroleum Industry Act for the benefit of oil-producing communities.

Abiye also noted that several communities eligible to be part of HOSTCOM were excluded and appealed for corrective measures to address the omission.