Nigeria's RMAFC orders dissolution of oil community trust within 48 hours

Nigeria's Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has issued a strict 48-hour ultimatum to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to dissolve a contentious Host Community Development Trust. The directive follows an investigative hearing that exposed significant concerns regarding the trust's formation and its representation of local oil-producing communities.

The RMAFC's Investment Monitoring Committee, led by Federal Commissioner Ekene Enefe, found fault with the trust established for communities affected by oil exploration. Enefe emphasized that these communities should not bear the environmental and social costs of oil activities without receiving corresponding development. The committee criticized Sterling Oil Exploration and Energy Production Company (SEEPCO) for failing to attend the hearing despite multiple invitations.

“

We are going to give you 48 hours to dissolve that host community development trust.

Mohammed Shehu, Chairman of the RMAFC, reaffirmed the commission's dedication to safeguarding the interests of oil-producing communities. He stressed the importance of "firm oversight, transparency and accountability" in managing national revenue assets. Shehu expressed confidence that the investigation would enhance trust in the petroleum sector and ensure communities receive their rightful benefits as stipulated by the Petroleum Industry Act.

Enefe directly addressed NUPRC officials during the hearing, stating, "We are going to give you 48 hours to dissolve that host community development trust." The commission intends to hold all entities within the petroleum value chain accountable for their statutory obligations, aiming to ensure effective discharge of responsibilities and prevent communities from being deprived of their due benefits.

“

firm oversight, transparency and accountability in the management of national revenue assets.