PIA: Nigerian govt plans trust fund for management of 3% allocation to oil communities

The Minister of Niger Delta Affairs, Godswill Akpabio, said on Thursday the Federal Government would set up a trust fund to manage the 3 percent allocation to host communities.

The Petroleum Industry Act (PIA) had proposed a 3 percent allocation to oil communities among other provisions.

The minister, who disclosed this during the weekly briefing organized by the Presidential Media Team at the State House, Abuja, said the trust fund would be set up to prevent any crisis that may arise in the implementation of the recommendation.

He said the ministry would ensure that the funds are used for the execution of tangible projects in the host communities, instead of disbursing them among leaders in the communities.

Akpabio said: “I think the major problem is not about the disbursement but how it will impact the communities.

READ ALSO: International oil firms owe NDDC $4bn – Akpabio

“These funds will be managed by the host communities themselves and the 3 percent will go into a trust fund for the various communities who are the original indigenes.

“We are excited about the Petroleum Industry Act, our job is to help facilitate the effective participation of the host communities. The trustees of the fund will come from the actual community.

“PIA when implemented is going to assuage the feelings of the host communities because they never had any real benefit in over 50 years. The major thing now is to use it well for their benefit.”

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