Economy

Petroleum Industry Act: 3 Percent Fund Should be Managed by Host Community Trust Fund – Mulade

Published on August 31, 2021

…Appreciates President Buhari for Quick Assent to Bill.

The National Coordinator of Center for Peace and Environmental Justice, CEPEJ, Comrade Sheriff Mulade has called on the Federal Government of Nigeria to establish and inaugurate the Host Community Trust Fund, HCTF, provided for by the Petroleum Industry Act, PIA, to manage the Petroleum Industry Fund towards addressing environmental and infrastructural issues affecting oil and gas producing host communities in Nigeria.

Chief Mulade, the Ibe-Serimowei of Gbaramatu Kingdom in Warri South West LGA of Delta State, made the call in Warri on Monday 30th Aug, 2021, while chatting with newsmen on Delta State at 30.

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The environmental activist condemned the idea that the Minister of Niger Delta Affairs or the Governors of oil and gas producing States should control and manage the 3% allocation provided for in the PIA, based on the oil and gas resources derived from, and the degradation effects of oil activities in the host communities.

He said if the Minister or State Governors control the 3% fund, it might be mismanaged the same way the 13% derivation fund allocated to oil and gas producing States for the development of oil and gas host communities, was misappropriated.

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Chief Sheriff Mulade then emphasized that the 13% oil derivation fund, and the PIA fund are meant to address the environmental, ecological and infrastructural development issues of oil communities. He said the 3% PIA fund should be managed by the Host Community Trust Fund, HCTF, as stipulated by Section 2 of the PIA.

While appreciating President Muhammadu Buhari, the National Assembly and all those who worked tirelessly to ensure the passage of the PIB, Comrade Mulade charged the PIA Implementation Committee headed by the Minister of State for Petroleum, Chief Timipre Sylva to expedite action on the development and positive growth of oil and gas host communities, which are the backbone or live wire of the Nigerian economy.

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