Oil and gas host communities in the country have thrown their weight behind the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) over the creation of the HostComply platform.
The platform is an app created by the upstream regulator to monitor and ensure transparency in the execution of funds in the host communities development trust funds.
National president, Host Communities of Nigeria Producing Oil & Gas (HostCom), Dr Benjamin Style Tamaranebim, who spoke on behalf of the communities, said the platform will help to checkmate the activities of the settlors and Host Communities Development Trusts (HCDTs) expose any sharp practices.
Dr. Tamaranebi, who was reacting to a story by a national newspaper, indicating that communities were angry over charges associated with the operation of the platform meant to improve service delivery to oil-bearing communities, described the report as ‘spurious propaganda’.
He stressed that the HostComply will not reduce the amount due to the communities from the three per cent operating expenses that should accrue to them.
“The HostComply is an app that will be managed by the regulators to checkmate both operators and the regulators and the host communities development trust, to know what is happening there, to monitor compliance of operators in remitting the funds and to know what the projects are meant for.”
He therefore urged the host communities to protect it as it would allow for transparency in the execution of the host communities trust funds
He also stressed that the app would not be funded out of the 3 per cent host communities fund but by the NUPRC.
It is an app created by NUPRC to checkmate both the settlors and host communities’ three per cent
“For the avoidance of doubt, the HostComply which is now put on the firing line by industry players is the ultimate to checkmate the activities of the settlors and Host Communities Development Trusts (HCDTs) both their annual OPEX due for every Trust, and knowing very well that it will expose their sharp practices and also everyone could find out what is due for each Development
Trust and could calculate at his comfort in any given time without visiting the operator’s office,” he said.
“It is not a hidden fact that our communities producing oil and gas in the country have been suffering devastation, deprivations and desecration of all sorts due to the activities of some critical stakeholders who short-change and create divide-and-rule systems to flourish. The Host Communities Development Trust (HCDT) was deliberately created to address the concerns of the host communities and stop the activities of the Shylock’s and their collaborators.
“The NUPRC as the regulator is putting everything in place so that the overall intention of the PIA on this score is effectively realised for the benefit of those envisaged.
“We are therefore not surprised that they are fighting back, using every available means, including trying to confuse and deceive members of the public with concocted narratives but we are not going to be swayed by their mischief.
According to him, for over two years of the enactment of 2021 PIA, the settlors seats comfortable up till date only 76 Development Trusts has been registered, and only 45 accounts has been created and only 38 accounts has been funded and more than 100 Development Trusts yet not registered with Corporate Affairs Commission (CAC) what an irony is this, and it was even after the pronouncement of NUPRCs revocation of Licenses notice last month September 2023 that prompted this number.
The setting up of HostComply is in furtherance to the provision of the PIA 2021, Chapter 3, section 235(1) which mandates: “The settlor shall incorporate Host Communities Development Trust (in this Act referred to as “the trust”) for the benefit of the host communities for which the settlor is responsible”.
Section 235(4) of the Act states: “The settlor shall for the purpose of setting up the trust, in consultation with the host communities, appoint and authorise a board of trustees (“the Board of Trustees”), which shall apply to be registered by the Corporate Affairs Commission as a
corporate body under the Companies and Allied Matters Act in the manner provided under this Chapter”.
The HostComply is meant to offer comfort to the HCDT by providing them with a robust technological tool to interface and engage with the settlors and manage projects in their respective communities professionally while meeting global ESG best practices. The facility has features and capabilities advantageous to all stakeholders as follows:
Settlors
Upload the incorporated HCDT registered.
Upload the 3% Opex by Assets for verification by the Regulator.
Track, analyse, and report on the use of funds for community development initiatives.
Foresee failure points by leveraging the data insights and mitigate against them.
Host Communities Development Trust (HCDT)
Provides a consistent and predictable administrative environment for interfacing with the settlors and the regulator.
Allow the HCDT to upload and showcase projects to be executed by the communities.
Easy proof of 3% Opex to be paid by settlors as verified by the regulator.
An opportunity to measure and monitor distributional equity amongst the communities.
Regulator
Detect and identify non-compliant situations through IT forensics and compliance Intelligence tools.
Real-time monitoring of progress of projects being executed by the HCDT.
Issue demand notices on the payment of the 3% Opex contribution by the settlors.
Verify the 3% Opex contribution and its distribution.
Civil society organisations/public
An open common framework to the public and civil society for information gathering to monitor accountability and probity in the management of 3% OPEX at the community level.
Public education, enlightenment, mobilization, monitoring, oversight, whistle-blowing, observation and feedback.
Other capabilities of the facility include:
Legal Module: Enable approvals of the constitution, winding up and dissolution of the Trust and Fund
ER&SP Module: Verify the account details of the Trust, annual audited report of the 3% Opex computation and contribution to the Fund. Review of all reports generated by the Trust.
Reserve Fund Manager Module: Enable the annual registration of the fund managers with the Commission. Allow for the monitoring of the management of the Reserve Fund.
BOT/Secretary/MC/AC Module: Interface for submission of complaints and petitions, reporting of fraud, breaches, and malpractices. Permit project management, monitoring, evaluation and benchmarking vendor and bidding management along with contract and document management.
Admin Module: Performance Evaluation and Analytics Dashboard for each user group and general overview, management of access rights and permissions, and review of audit trails.
We are confident that NUPRC under the able leadership of Engr Gbenga Komolafe FNSE is committed to fostering stronger relationships between host communities and operators, and enhancing the dividends of petroleum resources for the prosperity of all stakeholders. HostComply limits to the barest minimum human interference and represents a significant step forward in achieving this vision. It is only the non-conformists and those who have something to hide that are afraid of regulations, especially if the regulations limit their capacity to short-change the system and the people.
May we use this medium to call on this paid saboteurs and blackmailer to mind there business and stay clear from host communities, the same people who fought our 10% Opex and frustrated it to 3% still doing everything possible to kill our meagre 3% benefit. HOSTCOM will support NUPRC in any good regulations that will sustain the prosperity of Community Development,” Dr. Tamaranebi said.