The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) has urged the federal government to scrap the Niger Delta Development Commission (NDDC).
The National President of HOSTCOM, High Chief Benjamin Tamaranebi made the call on Tuesday in an interview with journalists at the side-line of the public hearing on Petroleum Industry Bill (PIB) 2020, organised by the Senate joint Committee on Petroleum Downstream, Upstream and Gas.
“What the government is supposed to add to the new PIB is the scrapping of NDDC and establishment of the Oil Host Communities Commission, which will, in practical terms, be very responsive to the development needs of the various host communities,” Tams said.
He also rejected the 2.5 per cent equity remittance to host communities proposed in the new PIB, describing it as unacceptable.
“What we want is 10% equity remittance from the various oil firms to respective host communities as proposed in the PIB considered in the 7th National Assembly but not assented to.’
But the Minister of State for Petroleum Resources, Timipre Sylva, in a separate interview with newsmen, said the 2.5 per cent proposed in the new bill was fair.
“I speak advisably as a member of the host communities myself. If you have to look at it properly, you will see that 10% of profit is different from 10% of the operation cost from the various oil firms.
“In this case, it’s 2.5% of the Operational Expenditure (OPEX). So, at the end of the year, you look at your operating cost and take 2.5% of that cost to the budget of the next year.
“As far as we are concerned, we have made a very fair proposal. Fair to the host communities, to the country and to the oil companies,” the minister said.
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