RMAFC Cracks Down on Oil Firms Over Host Community Benefits

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has intensified efforts to enforce accountability in the management of benefits due to oil-producing host communities, directing the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to address concerns surrounding the Host Community Development Trust (HCDT) linked to Sterling Oil Exploration and Energy Production Company (SEEPCO) within 48 hours.

The directive was issued during an investigative hearing by RMAFC’s Investment Monitoring Committee into SEEPCO’s compliance with the Host Community Development Trust provisions of the Petroleum Industry Act (PIA), held at the Commission’s headquarters in Abuja.

Chairman of RMAFC, Dr. Mohammed Bello Shehu, described the investigation as a critical national assignment aimed at safeguarding the interests of oil-producing communities and ensuring transparency in the management of Nigeria’s natural resource revenues.

He said the Commission would continue to strengthen oversight of operators and institutions responsible for implementing the Petroleum Industry Act, stressing that host communities must receive the benefits guaranteed under the law.

Shehu commended the Investment Monitoring Committee for its diligence, noting that RMAFC’s constitutional mandate requires firm oversight, accountability and transparency in the management of national revenue assets.

Leading the investigation, Chairman of the Investment Monitoring Committee and Federal Commissioner representing Anambra State, Dr. Ekene Enefe, expressed concern over SEEPCO’s repeated failure to honour invitations to appear before the Committee.

He warned that the Commission would not tolerate attempts by any operator to evade legitimate oversight.

Addressing officials of the NUPRC, Enefe directed the regulator to immediately resolve issues surrounding the Host Community Development Trust established for the affected communities.

“We are going to give you 48 hours to dissolve that Host Community Development Trust,” he said.

He also announced that the Commission would issue SEEPCO an ultimatum to settle all outstanding obligations owed to host communities, adding that the Committee would conclude its investigation and forward its findings to the appropriate authorities.

Earlier, the NUPRC delegation, led by the Director of Host Communities, Mrs. Ufondu Ejiro, defended the implementation of the Trust, maintaining that it had been properly incorporated, funded and structured in line with the Petroleum Industry Act.
She said the Commission had processed documentation relating to community consultations, governance structures, funding arrangements and Community Development Plans, insisting that NUPRC had discharged its statutory responsibilities in accordance with the law.
However, representatives of the affected communities rejected the regulator’s submissions.

Speaking on their behalf, Mr. Peter Chukwudi alleged that several individuals recognised as community representatives were not accepted by the affected communities and argued that adequate consultations were not conducted before the Trust was established.

He also questioned the level of development in the communities despite years of oil production and urged the Committee to fully investigate their grievances.

Also speaking, Anambra State Commissioner for Petroleum and Mineral Resources, Prof. Charles Ofoegbu, called for stronger collaboration between NUPRC and the state government in verifying community representation and monitoring compliance with statutory obligations.

He advocated greater transparency in the computation of statutory contributions, operational expenditure and execution of community development projects.

Other Federal Commissioners at the hearing also raised concerns over the implementation of the Host Community Development Trust framework.

The Federal Commissioner representing Rivers State, Ambassador Desmond Akawor, stressed the need for closer collaboration between regulators and state governments, while lamenting SEEPCO’s absence from the hearing.
Similarly, the Federal Commissioner representing Kogi State, Hon. Abdulazeez Idris King, questioned the effectiveness of NUPRC’s verification process, saying reliance solely on documents submitted by operators may not adequately establish that genuine consultations had taken place.

The Federal Commissioner representing Jigawa State, Hon. Hauwa Umar Aliyu, urged regulatory agencies to uphold the highest standards of professionalism and impartiality, stressing that the interests of host communities should receive equal attention alongside those of oil operators.

Concluding the session, Enefe assured stakeholders that all submissions and documentary evidence would be thoroughly examined before the Committee makes recommendations, reaffirming RMAFC’s commitment to ensuring that oil-producing host communities receive the benefits guaranteed under the Petroleum Industry Act.