By Udeme Akpan

THE CHAIRMAN, Host Communities of Nigeria, Producing Oil and Gas (Hoscon), Dr. Mike Emuh, Tuesday, said, the direct payment of derivation to States denied the host communities of funds, totalling N44 trillion in the past 22 years.

He said it was the non-payment to the communities that accounted for the underdevelopment of the areas, especially as efforts of many state governments were limited to the capitals.

In a telephone interview with Vanguard, Emuh, who praised President Muhammadu and the 9th National Assembly for their roles toward the emergence of the Petroleum Act in Nigeria, said efforts would be made to amend some unfavourable provisions in future.

He said: “I want to commend President Muhammadu Buhari for signing the Petroleum Industry Bill, PIB, into law. I also commend the efforts of the 9th National Assembly in getting it passed. It is a good start for the oil communities. I have been asking the communities to accept the new Act, even though we intend to canvass for the ammendment of some provisions, including the section, which gives a landlord status to the oil companies.

“With what the President and National Assembly have done, we have been recognized as the landlords that produce the oil and gas in the nation.

“In the past, because the 13 per cent derivation was given to States, the oil and gas communities, that suffer the negative impact of operations lost about N44 trillion to the States.

“But with the Petroleum Industry Act, 3 per cent of the annual budgets of oil companies, estimated at N500 million will be directed to the communities.

“We have come a long way in the struggle for justice. Recall that I was physically attacked at the National Assembly in the process of defending the communities.”