PETROLEUM INDUSTRIAL ACT: A BLESSING WE MUST ALL EMBRACE

The Petroleum Industry Act (PIA) signed into law by President Muhammadu Buhari on August 16, 2021, marks a significant milestone in Nigeria’s quest to reposition its Oil and Gas industry.

This landmark legislation is a comprehensive reform of the Petroleum Sector, aimed at promoting transparency, accountability, and investment in the industry.

The PIA is a blessing that we must all embrace, as it has the potential to transform the Nigerian economy and improve the lives of citizens.

Given its background, the NNPC/MPN JV EMOIMEE HOST Community Development TRUST (HCDT) was incorporated on July 5, 2023, and inaugurated on July 18, 2024, as part of the Petroleum Industry Act (PIA) 2021, which mandates Host Community
Development Trusts to manage funds for the development of host communities.

The primary objective of the EMOIMEE HOST Community Development TRUST is to promote the development of host communities in Akwa Ibom State, particularly in the seven local government areas that make up the trust, namely Eastern Obolo, Mbo, Onna, Ikot Abasi, Mkpat Enin, Eket, and Esit Eket.

Since its inception, the trust has disbursed funds to cater for various projects and programs, including scholarships, infrastructure development, skill acquisition programs, and medical outreaches.

It is important to commend the effort of the Board of Trustee Chairman, Her Excellency, Senator Helen Esuene and her team for doing an excellent job they’re doing so far. While a lot of approaches have been laid down for various development to place, she has assured the host communities of judicious implementation of projects.

Through the enactments of the PIA, the following are the direct benefits:

1. Increased Revenue Generation: The PIA introduces a new fiscal framework that will increase revenue generation for the Federal Government. This will enable the government to fund critical infrastructure projects, improve public services, and reduce poverty.
2. Improved Transparency and Accountability: The PIA promotes transparency and accountability in the petroleum sector by establishing clear rules and regulations for the industry. This will reduce corruption and ensure that the industry is managed for of all Nigerians.
3. Increased Investment: The PIA creates a favorable business environment that will attract investment to the petroleum sector. This will lead to the creation of jobs, stimulation of economic growth, and improvement in the standard of living of Nigerians.
4. Host Community Development: The PIA provides for the establishment of a Host Community Development Trust, which will ensure that host communities benefit from the oil and gas operations in their areas. This will reduce conflicts and promote peaceful coexistence between host communities and oil companies.
5. Environmental Protection: The PIA introduces new environmental regulations that will ensure that oil and gas operations are carried out in a responsible and sustainable manner. This will protect the environment, preserve natural resources, and promote eco-friendly practices in the industry.

In conclusion, the Petroleum Industry Act is a blessing that we must all embrace. It has the potential to transform the Nigerian economy, promote transparency and accountability, increase revenue generation, and improve the lives of citizens. We must all support the implementation of the PIA and work together to ensure that its benefits are realized.

Written by Abasiubong Tom