Sen. Ned Nwoko, has said that the Delta North Senatorial District, had yet to feel the impact of the International Oil Companies (IOCs) and Local Oil Companies (LOCs) operating in the region.
Nwoko, who represents Delta North Senatorial District, said this during an interview with NAN in Abuja on Friday.
He told NAN this was in spite of the implementation of the Petroleum Industry Act (PIA) since 2021.
He said that the three per cent development fund allocated to host communities under the PIA, had not translated into meaningful progress for the oil-producing communities in the district.
‘’The PIA, signed into law by President Muhammadu Buhari on August 16, 2021, 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.
He said that the Executive Director, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr Gbenga Komolafe, had revealed that oil companies consistently remitted these funds since 2021, amounting to hundreds of billions of naira.
The lawmaker said in spite of Komolafe’s disclosure, the neglect and marginalisation of Delta North’s oil-producing communities were glaring.
He said Delta North Senatorial District was home to several upstream and downstream oil companies, which included Nigerian Agip Oil Company (OML60) now Oando Energy Resources located in Ndokwa East Local Government Area (LGA).
Others he said were Platform Petroleum Limited (OML38) in Ukwuani LGA, Sterling Energy Exploration Production Company (OML143), Ndokwa East, Pan Ocean Oil Cooperation (OML147), Ika North East, and Midwestern Oil Company (OML56), Ndokwa West.
“We also have Pillar Oil Limited (OML56), Ndokwa West, Energia Limited (OML56), Ndokwa West, Chorus Energy Limited (OML56), Ndokwa East.
“There is also Ashtavinayak Hydrocarbon Limited (downstream), Ndokwa West, Opac Refinery (downstream), Ndokwa West, and PowerGas Ebedei Limited (downstream), Ukwuani.
‘’The cumulative remittance from these companies amounts to an estimated 30 per cent of their operational costs annually.
‘’Over four years, this represents approximately 120 per cent of their combined operating expenditures remitted into the CRF designated account supervised by NUPRC, totaling hundreds of billions of naira’’, he said.
According to him, these funds could help in addressing critical projects such as the Okpai Independent Power Plant (IPP) and the Ogwashi-Uku Dam, as well as to improve healthcare, education, road networks, among others.
“The lack of visible development from these funds raises serious concerns about transparency and accountability,” he told NAN.
Nwoko assured his constituents that as their lawmaker, he would expedite the disbursement of the funds by the NUPRC and other regulatory bodies.
“ I am committed to ensuring that NUPRC and other regulatory bodies expedite the disbursement of these funds and that they are judiciously utilised for the growth and development of our host communities.
‘’To build trust and accountability, I will engage with the relevant Senate committees and invite the management of these oil companies to provide detailed reports on their contributions and how the funds are being allocated.
‘’Furthermore, I will work closely with the inaugurated board members of our host communities to guarantee that these resources are used to address the specific needs of the people.
‘’Delta North cannot continue to suffer neglect while billions of naira intended for its development remain stockpiled in the CRF,’’ he said.
According to him, through collaboration stakeholders would ensure that these funds were put to work for the communities, paving the way for a brighter and more prosperous future for all.