PIA: PANDEF Demands Urgent Review, Says Current Implementation Disadvantages Niger Delta Host Communities
By Naija Enquirer Staff
The Pan Niger Delta Forum (PANDEF) has called for an immediate review of the Petroleum Industry Act (PIA), alleging that the ongoing implementation of the law unfairly marginalises host communities across the Niger Delta.
In a statement issued by PANDEF’s National Spokesman and Publicity Secretary, Chief Dr. Obiuwevbi Ominimini, the group argued that several provisions of the PIA were structured in ways that undermine the rights and welfare of oil-bearing communities.
Ominimini noted that while Section 257 of the Act allows host community development funds to be deducted whenever vandalism occurs, Section 236 mandates oil companies to pay daily penalties of $2,500 to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for non-compliance with certain obligations.
PANDEF insisted that such penalty payments should be directed to host communities rather than the regulator, accusing NUPRC of benefiting financially from oil firms’ persistent non-compliance.
The forum alleged that the regulator’s financial gains have contributed to a slow and ineffective implementation of the PIA. It lamented that many Host Community Boards of Trustees and Management Committees are yet to receive distribution matrices from oil firms, thereby stalling vital development projects across the region.
PANDEF expressed concern that funds meant for these projects are rapidly losing value to inflation, worsening socio-economic realities in oil-producing areas that already bear the brunt of environmental degradation.
The group urged the Federal Ministry of Petroleum Resources to exercise its oversight responsibility over NUPRC and ensure that the commission’s Chief Executive, Engr. Gbenga Komolafe, is held accountable for lapses in the execution of the Act.
PANDEF also appealed to President Bola Ahmed Tinubu to prioritise the rehabilitation of seaports in the Niger Delta as preparations for the 2026 federal budget commence. It criticised the concentration of container traffic in Lagos ports while Warri, Sapele, Koko, Burutu, Port Harcourt, and Calabar ports remain idle and deteriorating.
According to the group, reviving these ports is essential for stimulating economic activities and reversing decades of neglect in a region that continues to fuel Nigeria’s oil and gas revenues.
