News

May 23, 2018

13% derivation: Stop payment to states without commission, FG urged

13% derivation: Stop payment to states without commission, FG urged

PROTEST: Members of Host Communities of Nigeria Producing Oil and Gas, HOSTCOM, Urhobo ethnic nationality chapter, protesting at the entrance to Government House, Asaba, yesterday. Photo: Nath Onojake.

By Jimitota Onoyume

WARRI—HOST Communities of Nigeria Producing Oil and Gas, HOSTCOM, has called on the Federal Government to stop further payment of 13 percent derivation to  states that are yet to constitute a special intervention commission for host communities, appealing also that state governments that refuse to fund existing commissions in their areas should also not enjoy the fund.

National Chairman of HOSTCOM, Chief Benjamin Style, in his acceptance speech after his election,  also called on the Federal Government to release gas flaring penalties to host communities, adding that  the government should ensure effective implementation of its new policy on pipeline surveillance, protection   and other policies to strengthen community involvement in oil and gas activities in their areas.

Chief Style assured that his executive will work with the Federal Government and other stakeholders to guarantee peace in oil bearing communities.

“The Federal Government has deemed  it fit to consider host communities for pipeline surveillance and protection, conceding of 10 per cent equity participation, gas flare royalty payment to host communities .It is hoped that proper implementation of above government policies will go a long way in re-addressing the challenges of pipeline security in the region,” he said.