Thursday, June 4, 2026

The Sun Nigeria

PIA: NGO queries oil firms for flouting community development plans

Petroleum Industry Act

From Isaac Job, Uyo

A Non Governmental Organization under the aegis of Initiative for Africa Society Inclusion and Diversity (INCLUD), has decried non-compliance of oil companies in the implementation community development plans through Host Community Development Trusts (HCDTs) as required in the provisions of Petroleum Industry Act (PIA).

Speaking during a one day town hall meeting in Uyo on Saturday, the Executive Director of the NGO, Olayinka Akeredolu-Martins
emphasized the need for oil companies to prioritize community development and effective community participation in the entire development process.

“It is unacceptable, a situation where oil companies have now made community development plan a document shrouded in secrecy.

” Regrettably, many communities have no access to it. In some cases, the supposed content of the development plan have been altered by them.

“Some of them now give motorcycles as development project, and N100 thousand naira bursary as against scholarship to students.”

She said it is essential that both parties continue to work together, as equal partners, to ensure that HOSTCOM is implemented in a way that is fair, equitable, and beneficial to all stakeholders.

‘This will require us to be proactive, to be creative, and to be committed to finding solutions that work for everyone.”

According to a communiqué issued at the end of the meeting , the stakeholders warned that companies that fail to comply with the Petroleum Industry Act (2021) provision regarding the setting up of the HCDT should face sanctions, noting that the issue of non-compliance with community development plans is a recurring concern in Nigeria’s oil-rich regions.

Participants expressed disappointments over the absence of oil company representatives in the town hall meeting including Universal Energy Resources Ltd (UERL) and TotalEnergies despite their earlier receipt and acknowledgement of invitations .

The forum observed that host communities often bear the brunt of environmental degradation and economic displacement caused by oil exploration and production activities and should therefore be held in high esteem.

It would be recalled that PIA establishes the Host Community Development Trusts (HCDTs), which guide oil and gas company investments in community developments.

However, experts have highlighted issues related to finance and governance mechanisms that needed to be addressed to ensure effective implementation of the HCDTs.

“As the Nigerian government and stakeholders continue to grapple with the challenges of community development in oil-producing regions, the need for oil companies to prioritize compliance with community development plans remains a pressing concern.” She said .