A group known as Hope for Niger Delta Campaign (HNDC), has expressed its support for the inclusion of the 10 per cent Hosting Community Fund by International Oil Companies (IOC) in the Petroleum Industry Bill (PIB).

HNDC, in a memorandum submitted to the National Assembly Joint Committee on Petroleum Resources , said the establishment of the PIB is a great feat and a commendable step that has been taken by the federal government towards the realisation of developmental objectives for the country.

The memorandum, which was also made available to journalists by Comrade Sunny Ofehe, an environmental activist and founder/executive director of HNDC, noted that with the inclusion of the 10 per cent contribution of the IOC towards the Petroleum Host Community (PHC) Fund, the benefits of the initiative will not only stop at the host communities alone but will spread across the entire length and breadth of Nigeria.

The group posited that the passage of the PIB will help stop the illegal activity or unrest in the region as the host communities would be made partakers of the natural resources from their land.

According to the group, the inclusion of the 10 per cent Hosting Community Fund will directly and indirectly reduce negative impact on the environment due to illegal activities such as pipeline vandalism and illegal refinery operation.

“The inclusion of the 10 per cent Hosting Community Fund by IOC will help in the further development of the Niger Delta Region. It will also help to create more legitimate and successful entrepreneurs and boast employment creation in Niger Delta region.

“It will also help in providing the needed infrastructural requirement and assist in repositioning the Niger Delta region as an economic player in Nigeria, which automatically will lead to improvement in the par capital earning of the people in Niger Delta region.”

The PHC fund, the group said, can be utilised for the development of the economic and social infrastructure of the communities within the petroleum producing areas.

“The need for the remittance of 10 percent from the IOC net profit on a monthly basis into the PHC Fund is necessary as well as important to guarantee infrastructure development and improvement in the oil producing states.

“It would improve on the socio economic well-being of the hosting communities. Government will be able to channel its limited resources towards the provision of infrastructure in the non-oil producing communities. It would help eradicate the sense of marginalisation currently being felt by residents of the oil producing communities.

“Development and operation of licensed mini refineries: part of the 10 percent can be committed as equity contribution towards the development of mini refineries in the oil producing communities as a way of curbing the operation of illegal refineries which is fast becoming an environmental and economic hazard in the region,” the memorandum stated.
Source: http://infonigeria24.com/pib-group-seeks-inclusion-of-10-for-oil-producing-communities/

Can someone tell me in plain English why some people are against this 10% for oil-bearing communities?.....especially when it will not be taken from the federation account.

All this talk of NDDC, Niger Delta ministry and 13% derivation being enough for them is nothing short of wickedness and a clear manifestation of 'if i'm not gaining, then nobody should gain' syndrome; the fair and right thing should be done!

These people have suffered enough, and anything extra they get by way of benefits from their natural resource should be supported by ALL NIGERIANS!

They have no plans to develop their region, they just want to keep sharing money amongst themselves.