HOSCON Chairman Calls for Payment of Derivation Fund as Modular Refineries Arrive Niger Delta

MRS Oil Nigeria Plc
  • HOSCON Chairman Calls for Payment of Derivation Fund as Modular Refineries Arrive Niger Delta

Chairman of the Host Community of Nigeria Producing Oil and Gas, HOSCON, Dr Mike Emuh, has on Sunday, called for the quick release of 13% derivation fund to Niger Delta oil producing companies in order to improve the economic and environmental condition of the region.

Emuh, who was re-elected as Chairman by HOSCON at their Annual General Meeting, AGM, made the call after he revealed that ten Modular Refineries will soon commence operation in states within the Niger Deltan region.

He emphasized the need for the Federal government to fast-track the payment process as there are strong agitations for the release of the derivation payment. He, however, assured the Federal Government that trained personnel will be saddle with the task of guiding the Modular Refineries as soon as they become operational.

He also urged transnational oil firms in the country to move their headquarter to the region.

The Chairman further urged Oil Companies to make the derivation payment directly to their host communities instead of the Department of Petroleum Resources (DPR).

He said; “The law requires the fund to be paid directly to host communities for environmental degradation, pollution and plundering of their communities as a result of their gas flaring. Instead, the oil companies pay the fine to the Department of Petroleum Resources. On receipt of the money, DPR pays the money to the Central Bank of Nigeria, who later transfer the money to the Federation account”.

It would be recalled that Emuh’s second term reaffirmation motion was moved by Akwa Ibom State Chairman of the body,  Mr Obong Okon and was supported by Idubamo Awala, Chairman, Bayelsa State chapter.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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