The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has offered guidance to host communities of oil and gas infrastructure in Nigeria on how to maximize the benefits of the Petroleum Industry Act (PIA) 2021. Gbenga Komolafe, the Chief Executive of the Commission, emphasized the need for host communities to take ownership of the facilities within their areas to fully benefit from the PIA.
Komolafe provided this advice during the National Extractive Dialogue 2023 event, which was organized by the Nigerian Extractive Industry Transparency Initiative in collaboration with a policy advocacy and research group called Spaces for Change. He highlighted the significant contribution of the petroleum industry to Nigeria’s Gross Domestic Product (GDP) and the country’s overall growth and development.
Under the PIA, oil and gas companies are required to allocate three percent of their operating expenditure (OPEX) to the Trust’s Board of Trustees at the end of each financial year. Host communities have the authority to determine which projects will be funded with these funds, and the companies will have unrestricted access to these facilities. However, any expenditures incurred by companies due to disruptions, denial of access, vandalism, or sabotage will be deducted from the three percent Trust fund.
Komolafe encouraged host communities to take ownership of the facilities within their domains to fully leverage the benefits provided by the PIA. He emphasized the importance of collaboration among stakeholders to promote economic progress and development in Nigeria.