PREAMBLE:
The 2-day Townhall meeting held in Yenagoa, Bayelsa State was organized purposely to have a wide diverse perspective of participants on the Petroleum Industrial Act (PIA), particularly the Host Community provisions, and the role of the Nigeria Upstream Regulatory Commission (NUPRC) within the context of the Petroleum Industry Act. The essence is for critical stakeholders to come together to develop strategic plan of action for effective advocacy and implementation of the PIA.
The Townhall Meeting was attended by people from diverse background cutting across Civil Society Organizations (CSOs), Traditional Institution, Academia, interest groups, youth groups, well as government at both national and sub-national level.
KEY OBSERVATIONS:
The PIA does not clearly establish directly the role of State and Local Government in the implementation process and should be addressed in the event of a call for amendment of the Act.
Selection of projects that can help douse the impact of the difficulties being encountered by the communities are not based on community-driven identified needs, as different problems affects people differently in the communities.
There is knowledge gap in the understanding of the technicalities of the PIA among community stakeholders to identify their rights, roles and expectations and derive full benefits of the PIA.
3% gross operation cost from the previous year’s operational cost as provided in the PIA is grossly inadequate for community development.
That the PIA vests enormous powers in the NUPRC which is open to abuse in regulating the technical and commercial operations of settlors.
The Act appears to unduly empower the settler in several of the sections and clauses in Chapter 3 with respect to the HCDT.
While the Act has determined to some extent, who Host Communities are, it still gave settler the discretionary power to determine who a Host Community is and it is silence about impacted and transit communities in clear terms
The Act also places an undue burden on Host Communities in cases of vandalism and sabotage especially in the light of the fact that the Government is giving pipeline surveillance contracts to individuals.
The Act also provides for 30% as FEF which appears suspicious in the light of the 3% allocated to the actual Host Communities
The PIA is not gender sensitive and does not provide for people living with disability.
KEY RESOLUTIONS FROM PANNEL DISCUSSION AND 4 DIFFERENT WORKING GROUPS
Host communities should be strategic and prioritize their developmental needs bearing in mind that the sustainability of the host community’s funds is dependent on the duration of the operation of the oil company in their communities. And hence, communities should incorporate income generating opportunities as well as develop people’s capacity in various entrepreneurial skills for self-reliant independent businesses for financial emancipation.
The implementation of the Petroleum Industry Act (PIA), should be transparent and all inclusive for effective accountability to build trust for sustainable community development. Hence there should be monthly, quarterly, bi-annually and annually community town hall briefings and meetings and also to seek community buy-ins in the entire cycle of the community developmental projects.
Promote women inclusion in the leadership of the HCDT governance structure by incorporating gender responsive dynamics into the workings of the PIA implementation.
Democratization of the electoral process in the selection of the HCDT and BoTs using transparent and credible criteria including but not limited to educational qualification, community service and credible track records.
Though the PIA does not capture the role of State and Local Government in the implementation process. Nonetheless, the State Ministry of Environment, State Ministry of Mineral Resources and State Ministry of Marine and Blue Economy should support the effort of CSOs/NGOS/CBOs to ensure that host communities interests are protected.
Communities should continue to engage CSOs, lawyers, State Lawmakers and academia to educate and guide them on relevant provisions and sections of the PIA that apply to Host Communities. This would enable communities know their rights, roles and expectations and derive full benefits of the PIA.
There should be routine monitoring and evaluation of host communities’ developmental projects to ensure compliance, transparency and accountability.
Training and re-training of the HCDT for effective project planning and management.
Host Communities should not undermine the 3% gross Operational Cost for Communities Development, rather they should embrace it and make deliberate effort to fully access the fund annually and utilize the fund strictly as specified in the PIA provisions while they continue to advocate and while continuing with the demand for amendments of the PIA.
Training and re-training of the HCDT’s, for effective project planning, management and sustainability.
Every Host Community should write to request for audited statement of account of the previous year from the settlor operating in their communities. This would enable them know the gross 3% of the operational cost of the settlors due them annually.
Communities should make deliberate effort to establish a relationship for effective and smooth communication with NUPRC, such that they can report issues of misconducts and none adherence by the settlors to the standards and requirements of the PIA.
Despite the pivotal roles and powers vested on the NUPRC to regulate the technical and commercial operations of settlors, the NUPRC has not done better to change the narratives of settlors for none adherence to environmental standard in terms of oil spills clean up, environmental remediation, and compensation of affected communities due to equipment failures. Therefore, host communities, NGOs, CSOs and CBOs should advocate for NUPRC strict adherence to its establishing Laws against settlors.
If Communities are to be held responsible for vandalism and sabotage, pipeline surveillance contracts should be awarded to the Host Communities.
The National Assembly should amend the PIA (2021) to review these sections and clauses to reflect the aspirations of the Host Communities, including incorporating provisions in the Solid Mineral Laws in respect to Environment, Consent, and Royalty into the PIA
Allocation of at least 30 percent to fund to cover for women, People with Disabilities (PWDs), elderly and other vulnerable groups on health, Girl Child Education, adult literacy, grants and soft loans etc.
SIGNED:
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