Senator Ned Nwoko, representing the Delta North Senatorial District, has alleged that his constituents are not benefitting from the 3% remittance of oil companies located in the district.
Nwoko, in an interview with the News Agency of Nigeria, noted that despite the implementation of the Petroleum Industry Act (PIA) in 2021, communities in his district do not feel the impact of the International Oil Companies (IOCs) and Local Oil Companies (LOCs) operating in the region.
According to the PIA, signed into law by former President Muhammadu Buhari, oil companies are to remit 3% of their annual operating expenditure to the Consolidated Revenue Fund (CRF) for the development of host communities.
Sen. Nwoko argued that the oil companies complied with the law by remitting the 3%, but it had not translated into meaningful progress for the oil-producing communities in the district.
‘’The PIA created a legal framework for governance, regulation, and fiscal responsibility in the petroleum industry. This mandates that three per cent of the annual operating expenditure of oil companies be remitted to the Consolidated Revenue Fund (CRF) for the development of host communities.
‘’The enactment of the PIA was a landmark moment, aimed at addressing years of environmental degradation, neglect, and lack of Corporate Social Responsibility (CSR) in host communities.
‘’For Delta North, this law was supposed to usher in a new era of rapid infrastructural development and improved living conditions. Unfortunately, this promise remains largely unfulfilled,” he said.
Nwoko listed the oil companies operating in the region and their oil fields including:
“There is also Ashtavinayak Hydrocarbon Limited (downstream), Ndokwa West, Opac Refinery (downstream), Ndokwa West, and PowerGas Ebedei Limited (downstream), Ukwuani,” he added.
“The lack of visible development from these funds raises serious concerns about transparency and accountability,” he argued.
Nwoko pledged to ensure that henceforth, the funds are judiciously allocated, disbursed and used for the growth and development of the oil-producing communities in his region.