The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it will strictly enforce compliance with the Petroleum Industry Act (PIA) 2021, especially provisions on host community funding.
At a sensitisation programme in Owerri, Imo State, the Commission’s Chief Executive, Mrs Oritsemeyiwa Eyesan, directed oil and gas companies to comply fully with the law. She stressed that operators must fund Host Communities Development Trusts (HCDTs) as required.
The PIA mandates oil companies to contribute three percent of their annual operating expenditure to the trusts. Communities must use the funds for education, healthcare, infrastructure, and economic empowerment projects.
Eyesan, represented by Atama Daniel, said the commission will monitor compliance and enforce the law where necessary. She also urged host communities to protect oil facilities and stop illegal refining and unauthorised exploration. According to her, such activities weaken development efforts and reduce available benefits.
Focus on Accountability and Dispute Resolution
Eyesan disclosed that the commission has established Alternative Dispute Resolution (ADR) Centres. These centres will handle disputes between oil companies and host communities. She explained that the initiative will promote dialogue and speed up conflict resolution.
Speaking at the event, HOSTCOM National President, Dr Benjamin Tamaranebi, urged communities to focus on sustainable projects. He advised them to invest in schools, scholarships, and long-term infrastructure instead of short-term or non-essential ventures.
Tamaranebi also warned traditional rulers against bidding for contracts linked to community projects. He said monarchs, as heads of Host Community Boards of Trustees, must supervise project execution and ensure transparency. Allowing them to award contracts to themselves, he noted, would compromise accountability.
He added that funding to host communities has increased under the PIA framework. Therefore, communities should use the resources wisely to stimulate economic growth.
Johnson Abiye, Deputy Executive Director of the Environmental Defenders Network (EDEN), called on regulators to sustain strict enforcement of the Act. He also pointed out that some eligible communities were excluded from HOSTCOM structures and urged authorities to correct the omissions.
The sensitisation programme forms part of NUPRC’s broader effort to drive compliance and ensure oil revenues translate into measurable development in host communities.