The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has reaffirmed its commitment to ensuring that oil-producing host communities receive the benefits guaranteed under the Petroleum Industry Act (PIA), warning that operators and regulatory agencies will be held accountable for any breach of their statutory obligations.
Chairman of the Commission, Dr. Mohammed Bello Shehu, gave the assurance during an investigative hearing into the operations of Sterling Oil Exploration and Energy Production Company (SEEPCO) and the implementation of the Host Community Development Trust (HCDT) provisions of the PIA at the Commission’s headquarters in Abuja.
Dr. Shehu described the investigation as a critical national responsibility, saying RMAFC would continue to strengthen oversight, transparency and accountability in the management of the nation’s oil revenues to safeguard the interests of host communities.
The Chairman of the Commission’s 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, stressing that the Commission would not tolerate attempts to evade legitimate oversight.
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He directed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to address concerns regarding the Host Community Development Trust established for the affected communities, and gave the regulator 48 hours to dissolve the current trust.
Dr. Enefe also disclosed that SEEPCO would be issued an ultimatum to settle outstanding obligations owed to host communities, adding that the Committee would forward its findings and recommendations to the appropriate authorities after concluding its investigation.
Responding, the NUPRC delegation, led by the Director of Host Communities, Mrs. Ufondu Ejiro, maintained that the Host Community Development Trust was established and funded in accordance with the Petroleum Industry Act, noting that the Commission had processed documentation on community consultations, governance structures, funding and development plans.
However, representatives of the affected communities rejected the regulator’s submissions, alleging that several individuals recognised as community representatives lacked the mandate of the people, insisting that adequate consultations were not conducted before the trust was constituted.
The Anambra State Commissioner for Petroleum and Mineral Resources, Professor Charles Ofoegbu, called for stronger collaboration between NUPRC and state governments to improve transparency, verify community representation and monitor compliance with statutory obligations.
Federal Commissioners at the hearing also advocated closer engagement between regulators, state governments and operators to ensure effective oversight and protect the interests of oil-producing communities.
The hearing is part of RMAFC’s ongoing oversight initiative aimed at promoting transparency, strengthening accountability and ensuring that host communities receive the full benefits guaranteed under the Petroleum Industry Act.
