The federal government has gazetted the Petroleum Industry Act, 2021.
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According to a reviewed copy of the gazette, the act will provide legal, governance, and fiscal framework for the Nigerian petroleum industry, the development of host communities, and for related matters. The commencement of the act started on 16 August, 2021.
According to the gazette, the host communities’ development trust for the benefit of the host communities for which a settlor is responsible must be incorporated within the next 12 months.
The act said that a host communities’ development trust shall be incorporated within 12 months from the effective date for existing oil mining leases.
It said, “The host communities’ development trust shall be incorporated within 12 months from the effective date for existing oil mining leases; within 12 months from the effective date for existing designated facilities.”
The trust will be funded by an annual contribution of 3 per cent of a company’s actual annual operating expenditure of its preceding financial year in the upstream petroleum operations affecting the host communities.
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