NUPRC Attracts N200bn for Development of Host Communities, Says Komolafe

 By Our Correspondent

The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe, has disclosed that the commission has attracted about N200 billion for the development of oil and gas host communities in the country.

 

Mr. Gbenga Komolafe

 

 

He explained that the fund comprised N60 billion and another $100 million when calculated on the prevalent foreign exchange rate.

Komolafe revealed this Monday at the inauguration of the Body of Neutrals of the Alternative Dispute Resolution Centre (ADRC) at the NUPRC Lagos Regional Office.

He stated that the feat was achieved through the implementation of the Petroleum Industry Act (PIA).

He said however that while this huge funds had been facilitated and available for host the communities’ development, litigations from host community cases have contributed in delaying the utilisation of these funds.

The PIA, which was signed into law in August 2021 among other things, provided for the host community development fund which is to be funded with a pool of three per cent of the operating companies’ capital expenditure (Capex) in every preceding year.

The fund, as provided by the PIA, is to be managed by the Host Community Development Trust (HCDT).