Central Bank of Nigeria and the Ministry of Finance have been called upon by the House of Representatives to immediately release N27.6 billion to oil-producing communities for the mitigation of the effects of gas flaring on their environment.
The House said it was aware that the sum paid as a penalty by some oil firms was okayed by the administration of former President Muhammadu Buhari in compliance with the Petroleum Industry Act 2021.
It, therefore, mandated its Committee on Host Communities to ensure the release of the N27.6 billion and report back within a month for further legislative action.
The decisions followed the adoption of a motion by a member representing Andoni/ Opobo–Nkoro federal constituency of Rivers State in the House, Awaji-Inombek Abiante, yesterday.
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The motion was titled ”Need for the Central Bank of Nigeria to release the approved N27.6 billion as part of funds generated from gas flaring penalties to host communities in compliance with the Petroleum Industry Act.”
The House said it was also aware that over N100 billion has so far been received as gas flaring penalty or fines by the Department of Petroleum Resources and paid to the CBN.
It pointed out that Section 104, subsection (4) of the PIA and other international laws demands that, monies collated as gas flaring penalties be paid to host communities for environmental remediation and relief.
The House expressed concern that despite the approval of the N27.6 billion, the apex bank, the Finance Ministry and other relevant government agencies had yet to comply with statutory provisions.
It lamented that gas flaring has not only continued to hamper the agricultural activities in the host communities but fuels vandalism and agitations.