Senator Ned Nwoko, Chairman of the Senate Committee on Reparation and Repatriation, has voiced concerns over the minimal impact of International Oil Companies (IOCs) and Local Oil Companies (LOCs) on Delta North Senatorial District, despite the Petroleum Industry Act (PIA) being in effect since 2021.
In a statement on Thursday, Nwoko lamented that the 3% development fund allocated to host communities under the PIA has not translated into tangible benefits for oil-producing areas in Delta North.
He criticized the accumulation of billions of naira meant for community development in the Consolidated Revenue Fund (CRF), stressing that Delta North cannot remain neglected while these funds remain unused.
The Senator called on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), led by Engr. Gbenga Komolafe, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure transparent and effective utilization of these funds for their intended purpose.
The Delta North Senatorial District has yet to experience the benefits of IOCs and LOCs operating in the region, despite the PIA’s implementation. The 3% host community development fund has not brought meaningful progress,” Nwoko stated.
He noted that the PIA was designed to address years of environmental degradation and neglect suffered by host communities, yet Delta North remains deprived of the expected infrastructure and improved living conditions.
Emphasizing transparency and accountability, Nwoko urged regulatory bodies to ensure that funds generated under the PIA are properly managed.
“The NUPRC and NMDPRA must guarantee that the accrued funds are utilized transparently for their intended purpose. They have a responsibility to ensure that host communities benefit directly from these resources,” he added.
The Senator highlighted several oil and gas companies operating in Delta North, including:
Nigerian Agip Oil Company (OML60)
Platform Petroleum Limited (OML38)
Sterling Energy Exploration (OML143)
Pan Ocean Oil Cooperation (OML147)
Midwestern Oil Company (OML56)
Energia Limited (OML56)
Opac Refinery (Downstream)
PowerGas Ebedei Limited (Downstream)
He revealed that the cumulative 3% remittance from these companies amounts to approximately 30% of their annual operational costs, equating to hundreds of billions of naira. These funds, he argued, are more than sufficient to finance critical projects such as the Okpai Independent Power Plant and the Ogwashi-Uku Dam.
Assuring his constituents of his commitment to accountability, Nwoko vowed to engage with Senate Committees and summon oil company executives to provide detailed reports on their financial contributions and fund allocation.
“I will work closely with host community boards to ensure these resources are directed toward essential sectors such as healthcare, education, and infrastructure,” he affirmed.
He concluded by pledging to push for the effective use of these funds, ensuring a brighter and more prosperous future for Delta North communities.
