The house of representatives has resolved to probe oil and gas companies over the alleged failure to remit 3 percent of their annual operating expenditure to host communities.
The decision followed the adoption of a motion sponsored by Hart Cyril, a lawmaker representing Degema/Bonny federal constituency of Rivers state, during Wednesday’s plenary.
The Petroleum Industry Act (PIA) requires oil companies to provide an annual contribution — 3 percent of their actual operating expenditure of the preceding financial year — to the host communities’ development trust fund.
Leading the debate on the motion, Cyril said several oil firms are yet to incorporate host communities development trust funds in their areas of operation — a key requirement of the PIA meant to foster development in oil-producing areas.
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“Failure to fund the host communities’ development trust fund has hampered the development of the host communities where the companies operate,” the legislator said.
The lawmaker said section 297 (1) of the PIA criminalises the violation of the law, with the possible revocation of a holder’s licence or lease.
The motion was unanimously adopted when Benjamin Kalu, the presiding officer, called for a voice vote.
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Subsequently, the house mandated the committee on host communities to investigate all alleged breaches of the law and report back within four weeks for further legislative action.
Since 2021, when late President Muhammadu Buhari approved the law, there have been demands by host communities to increase the fund from 3 percent to 5 percent.
