HOSTCON urges FG to release N98b penalty for gas flaring

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The Host Communities of Nigeria Producing Oil and Gas (HOSTCON), have called on the federal government to release the N98 billion gas flaring penalty money owed, The Nation reports.

The National Chairman of HOSTCON, Mike Emuh, explained that the release of the money would help to sustain existing peace in the region. Speaking in Abuja, Emuh said: “It is an international law that a $3.5 fine should be paid by oil companies for every 1,000 standard cubic feet of gas flared.”

“The law requires the fund to be paid to the host communities for environmental degradation, pollution and plundering of their communities as a result of gas flaring but the oil companies pay the fine to the Department of Petroleum Resources (DPR).”

“On receipt of the money, the DPR pays the money to the Central Bank of Nigeria (CBN), who later transfers the money to the Federation Account.This is an aberration,” Emuh went on to add.