Federal Ethnic Council Tasks Presidency On Management Of Petroleum Host Community Fund


Authorities of Federal Ethnic Council – Ethnic’ Communities Security Operation Department (ECSOD) has formally submitted a proposal to President Muhammadu Buhari on the administration and management of the Petroleum Host Community Fund (PHCF), as part of ongoing efforts to ensure stability in the oil producing States, namely: Bayelsa, Delta, Rivers, Cross River, Akwa Ibom, Ondo, Edo, Abia and Imo.
The letter with Reference No: L&C/ECSOD/SAP/021/.4/138 dated 25th August, 2021 which was addressed to the Presidency, was signed by ECSOD Leader & Commander, Prince Emmanuel Oyibo.
According to the letter made available to newsmen, the Agency offered to administer and manage the 3% allocation for the Petroleum Host Community as stipulated in the Petroleum Industry Act, 2021 signed by Mr. President.
“We appreciate His Excellency for the relentless effort in ensuring that the long awaited Petroleum Industry Bill (PIB) is now finally passed into law. We thank His Excellency so much.
“Ethnic Communities Security Operation Department to administer and manage 10% Petroleum Host Community Fund (PHCF) which is now 3% in the comprehensive dossier with reference No: L&C/ECSOD/SAP/019/.3 dated 31st January, 2019 herein attached, which the summary was also received by the National Assembly Committee on Petroleum Industry Bill House of Representatives.
“We hereby wish to notify His Excellency that in due course, names of representatives of the 9 States of our operational staff (Directors) each from a State that comprises the Community Trust Fund and their names would be forwarded by September, 2021,” the letter read in part.
The Agency which is involved in grassroot youth integration through conflict resolution in line with the Niger Delta Regional Development Master Plan (NDRDMP), had in a letter with Ref. No: L&C/ECSOD/SAP/NDDC/2 dated 20th November, 2018 addressed to the Managing Director/CEO of Niger Delta Development Commission (NDDC), offered to manage the PHCF and the current 50% of the 13% oil Derivation Funds accruing to each state oil commissions from the Federation account, base on oil production quantum for each notable major oil communities.
When approved, “ECSOD is to ensure that satellites communities will benefit from the N94.5 billion compensation yearly payment voted out and declared for 187 major oil producing communities in the Petroleum Host Communities Fund in the (Petroleum Industry Bill (PIB) when passed into law.
“ECSOD will determine in all sincere manner the data of crude oil producing quantum of each oil communities from Department of Petroleum Resources (DPR). With the compliance on the production quantum from the Department of Petroleum Resources (DPR) on crude oil data of the oil producing communities, will enable us know what should be appropriated to 187 major oil communities with the villages under them, including communities of the oil pipe lines cut-across respectively, to have access to benefit in the N94.5 billion compensation yearly payment to oil communities for the use of wealth creations.
“In order to have a balance structure on the fund sharing to the major concerned communities without been misappropriated and avoiding wastage of the fund, the Ethnic Communities Operation Department (ECSOD) will implore the formula three (3) groups system for each community made up of 10 persons appointed by indigenes of the community with name of company to the group of enterprises and shall be registered through the ECSOD,” the letter read in part.

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