Ned Nwoko, the Delta North Senatorial District lawmaker, says the district has yet to feel the impact of the international oil companies (IOCs) and local oil companies (LOCs) operating in the region.
Mr Nwoko said during an interview with journalists in Abuja on Friday that this was despite the implementation of the Petroleum Industry Act (PIA) in 2021.
He said 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.
‘’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 the executive director, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, had revealed that oil companies consistently remitted these funds since 2021, amounting to hundreds of billions of naira.
The lawmaker said that despite Mr Komolafe’s disclosure, the neglect and marginalisation of Delta North’s oil-producing communities were glaring.
He said the 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).
Mr Nwoko said others 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, totalling hundreds of billions of naira,’’ he said.
According to him, these funds could help address critical projects such as the Okpai Independent Power Plant (IPP) and the Ogwashi-Uku Dam and improve healthcare, education, and road networks, among others.
“The lack of visible development from these funds raises serious concerns about transparency and accountability,” he told journalists.
Mr Nwoko assured his constituents that as their lawmaker, he would expedite the disbursement of the funds by the NUPRC and other regulatory bodies.
The lawmaker also pledged to engage with relevant Senate committees, the management of the oil companies and the inaugurated board members of host communities.
‘’Delta North cannot continue to suffer neglect while billions of naira intended for its development remain stockpiled in the CRF,’’ he added.
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