Isoko Communities Threaten to Halt Oil Production Over Non-Release of HCDT Funds
By Naija Enquirer Staff
Leaders and stakeholders in Isoko land, Delta State, have threatened to halt oil production activities in their communities over what they describe as prolonged neglect and the non-release of funds meant for the Host Community Development Trust (HCDT) established under the Petroleum Industry Act (PIA) of 2021.
The position was contained in a statement jointly signed by Erere Okpako and Angela Akpofa for the Isoko Grassroot Mobilizers. The group expressed disappointment that nearly two years after the inauguration of the AIO Host Community Development Trust (AIO HCDT), the fund remains inactive, leaving host communities in worsening conditions.
“By the Act, oil companies are expected to channel three percent of their Operating Expenditure (OPEX) to the HCDTs for the development of host communities,” the statement read. “Of these funds, 75% is for infrastructure development, 20% for investment, and 5% for administrative purposes. But as we write this, even the five percent meant to enable a proper take-off has not been released, let alone those for infrastructure and reserve.”
The leaders noted that the continued delay has created mounting frustration among the communities, particularly those under Oil Mining Lease (OML) 26, operated by the Nigerian National Petroleum Company Exploration and Production Limited (NEPL) and new industry entrant Sterling Global. They warned that unless urgent steps are taken, oil operations in Isoko land may be disrupted.
According to the statement, the AIO HCDT has been “working without tools, not even office accommodation,” despite repeated meetings with NEPL officials in Warri and Ozoro aimed at resolving operational challenges. “Back and forth have been the ordeal of the HCDT, and now the communities say enough is enough,” the leaders declared.
“We wonder if the PIA is a curse or a blessing,” one unnamed community leader lamented. “Before the PIA, our activities were managed under the Global Memorandum of Understanding (GMoU). We thought the PIA would bring more structure and fairness, but the reality has not been any better.”
The statement added that in early October 2025, NEPL communicated approval of the five percent administrative budget to the AIO HCDT Board of Trustees, but the funds have still not been credited to the Trust’s account — creating further complications for its operations.
Meanwhile, the tension continues to build as the Isoko Youth Assembly and other groups prepare for possible confrontation with the oil firms. Insiders at NEPL, however, admitted that processes have been “slow,” pleading for community understanding while the issues are being resolved.
The Isoko stakeholders have warned the oil companies “not to overstretch their luck,” stressing that they will no longer tolerate neglect. “We implore the operators to expedite actions to forestall any possible consequences that may result from a shutdown,” the statement said.
They also called for immediate government intervention to prevent further escalation and to safeguard the economic interests of both the communities and the oil companies operating in the region.
