Senate Presses NUPRC to Sanction Oil Firms Without Host Community Development Trusts
By NaijaEnquirer Staff
The Senate Committee on Host Communities has called on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to sanction oil firms that have not established Host Community Development Trusts (HCDTs) as mandated by the Petroleum Industry Act (PIA) 2021. Lawmakers say failure to comply undermines the Act’s peace-building framework in the Niger Delta.
Senate Warns Against Non-Compliance
Speaking at the commissioning of projects executed by the Obagi Oilfields HCDT in OML58, Rivers State, Committee Chairman Senator Benson Agadaga emphasized that companies must be held accountable. “It is against the spirit of the PIA if you don’t set up an HCDT,” he said. “NUPRC, in your regulatory functions, take stringent measures against oil companies who have not set up their HCDTs. Where you fail to do it after ten months, there are sanctions, so oil companies who’ve not done it should be sanctioned.”
Agadaga noted that the relative peace currently seen in the oil and gas industry was directly linked to the PIA’s implementation, which has reduced hostilities and fostered stability in host communities.
Model of Successful Implementation
The senator urged other HCDTs to emulate the Obagi initiative, which has delivered schools, hospitals, roads, and other infrastructure across Ogba/Egbema/Ndoni Local Government Area. “This is the only hope for stability in oil-producing areas. We no longer want interruptions; we need maximum production of at least two million barrels per day, and that can only be achieved with peace through HCDTs,” he added.
Lawmakers and Regulators Applaud Obagi Projects
Hon. Cyril Hart, representing House of Representatives Committee Chairman Dum Dekor, said the Obagi HCDT projects were a demonstration of Section 234 of the PIA. “Today the settlors can beat their chest to say they have fulfilled the objectives of that section, which entails prosperity for the community, socio-economic benefits, and peace,” he remarked.
NUPRC’s Executive Commissioner, HSE and Community, Capt. John Tonlagha, described the event as proof of the Act’s impact. “This is far more than a ceremony—it’s a tangible demonstration of what is possible when regulatory efficiency, community cooperation, and government commitment converge to deliver progress and peace,” he said.
Government and Industry Endorse Support
Rivers State Deputy Governor, Dr. Ngozi Odu, praised President Bola Ahmed Tinubu for driving the PIA’s implementation, noting that commissioning more than 10 projects in Egi land was unprecedented.
Mr. Matthieu Bouyer, Managing Director of TotalEnergies EP Nigeria, stated that the Obagi HCDT was among the first created and funded after the PIA’s passage. “Two years after, there is real value from those funds. These nine projects will impact 30,000 people,” he said proudly.
Projects Delivering Real Impact
The commissioned projects include an 18-classroom block, a remodelled 20-bed hospital, an ultra-modern civic centre, asphalt and concrete roads, water and gas facilities, a bottling water factory, and upgraded primary schools. All were executed by the Obagi Oilfields HCDT in Rivers State.
With lawmakers, regulators, industry players, and communities aligned, the Senate insists full compliance with the PIA is vital for ensuring lasting peace, stability, and economic growth in the Niger Delta.
