OrderPaperToday -The House of Representatives has mandated its committees on Treaties and Protocols and Petroleum Resources (Upstream), to review all the agreements and memoranda of understanding between oil companies and host communities in order to protect the interest of the latter.

 

The decision followed the adoption of a motion moved by the chairman of the House Committee on Treaties and Protocol, Nicholas Ossai (PDP, Delta) on Wednesday.

Entitled “holistic review of all agreements between oil companies in nigeria and host communities”, he argued in the motion that agreement between oil companies and host communities includes Corporate Social Responsibility (CRS), which he said is strategically important for business.

He, regretted, however, that the oil companies seldom fulfil the pledges made in such agreements.  

He explained that “the execution of agreements between oil companies in Nigeria and their host communities is a form of Corporate Social Responsibility” and that “such strategic business management and corporate governance initiative is designed to balance responsibility of stakeholders at all levels and produce greater impact on a wide number of people.” 

He continued, Most of the agreements are either partially implemented or completely not implemented by the oil companies, resulting in untold hardships on the host communities in Nigeria.”

 Ossai, who is from the oil producing region oin Nigeria, blamed the restiveness in the region on the inability of the IOCs to fulfil the agreements with the host communities. 

He, therefore, called for a holistic review of the agreements between the IOCs and the host communities.

Ossai said this has become necessary because the continued breach of such agreements and under performance by oil companies has built up disaffection, restiveness and tension in the oil producing communities in Nigeria.

“A holistic review of all agreements executed and entered into by oil companies with their host communities will resolve all problems and provide a lasting solution to the poor implementation of agreements by oil companies.”

 The committees were given 8 weeks to review the agreement and report back to the House for further legislative action.

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