The Senate Committee on Host Communities has directed the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) to sanction international oil companies (IOCs) that ignore the Petroleum Industry Act (PIA) requirement to establish Host Communities Development Trusts (HCDTs).
Committee Chairman Senator Benson Agadaga gave the order on Wednesday during the commissioning of seven major projects by the Obagi Oilfield Host Communities Development Trust in OML-58, operated by TotalEnergies, in Ogba/Egbema/Ndoni Local Government Area of Rivers State.
Call for Compliance and Stability
Agadaga emphasized that the PIA has already reduced conflicts between oil companies and host communities, promoting peace across the Niger Delta. He warned that any firm refusing to comply with the law would face consequences.
“Host communities are less hostile because the PIA is delivering dividends, and we are now witnessing results,” he said. “Where IOCs fail to set up their HCDTs within three months, sanctions must follow. Those ignoring this mandate threaten peace and stability in oil-producing areas.”
He added that uninterrupted oil production was essential for Nigeria to meet its two million barrels per day target. Consequently, he urged other development trusts yet to launch projects to emulate the Obagi example.
Agadaga also tasked NUPRC to monitor compliance actively and apply “stringent measures against defaulting companies according to the law.”
Projects Driving Local Growth
The newly commissioned projects cover infrastructure, health facilities, agriculture, livelihood support, human capital development, and economic empowerment. Importantly, they fall under the PIA framework, which places host communities at the heart of development planning.
Rivers State Deputy Governor, Prof. Ngozi Odu, recalled the region’s struggles with poor infrastructure before the projects. She applauded TotalEnergies and its partners for translating the PIA into visible results and thanked President Bola Tinubu and the National Assembly for providing the enabling framework.
TotalEnergies Managing Director Matthieu Bouyer revealed that the company identified and approved 539 projects across 64 host communities under the Community Development Plan. He explained that the seven commissioned projects reflected community priorities and were executed by locally chosen trustees and management committees.
“We remain committed to implementing the PIA for sustainable socio-economic growth in our host communities and Nigeria at large,” Bouyer said. “Let these projects serve you and generations to come.”
Regulatory and Community Backing
Speaking on behalf of NUPRC Chief Executive Gbenga Komolafe, Executive Commissioner for Health, Safety, and Environment John Tonlagha praised the projects as a milestone in dialogue-driven development.
“This achievement shows that true progress comes from unity and peace,” he said. “The projects demonstrate that our regulatory framework delivers tangible benefits to communities from petroleum resources.”
Komolafe, through Tonlagha, further commended President Tinubu for supporting community development in oil-bearing regions. He urged residents to safeguard the projects for long-term benefit.
“The future of the industry lies not only in revenue generation but also in how effectively it uplifts communities,” he declared.