Stakeholders Urge Federal Government to Establish Periodic Review Framework for Petroleum Industry Act Implementation

By Naija Enquirer Staff

Stakeholders at a two-day Host Community Development Trust (HCDT) National Summit have urged the Federal Government to create a policy direction that allows for the periodic review of the Petroleum Industry Act (PIA), citing slow implementation, lack of transparency by settlors, and weak community awareness of the law.

Summit Aims to Close Implementation Gaps

The summit, held in Port Harcourt, Rivers State, convened civil society groups, HCDTs, Boards of Trustees, media representatives and other stakeholders to examine development gaps caused by oil and gas extraction across the nine Niger Delta states. The event was organised by the Civil Society Legislative Advocacy Centre (CISLAC), Connected Development (CODE), BudgIT Foundation, KebetKache Women Development and Resource Centre, and the Niger Delta Budget Monitoring Group (NDEBUMOG), with support from OXFAM in Nigeria.

Communities Still Beleaguered Despite Allocated Funds

Speakers at the conference said that despite funds earmarked under the PIA for host communities — including the statutory 3% OPEX contributions by settlors — many communities continue to suffer poverty, poor road infrastructure, lack of healthcare facilities, and limited economic opportunity. They argued that the impact of the PIA has been muted in many host localities even four years after the law’s enactment.

Transparency, Participation and Gender Inclusion Concerns

Participants alleged that some settlors (operating oil and gas firms) have not been transparent in their dealings with HCDTs and communities, and that attempts have been made to influence HCDT composition — a process that community stakeholders say should be led by the communities themselves. Delegates also raised concerns about gender bias in HCDT membership, calling for greater inclusion of women and youth.

Knowledge Gaps and Civic Education Needs

The summit observed that many host-community residents remain unfamiliar with the PIA and its mechanisms, often retaining knowledge of the older Global Memoranda of Understanding (G-MOU) arrangements instead. Delegates recommended intensified civic education and outreach to ensure communities understand the PIA and can hold duty-bearers to account.

Key Communiqué Recommendations

In a communique issued at the close of the summit, delegates made several core recommendations:

• To the Federal Government: Provide a formal policy framework for periodic review of the PIA; establish fiscal and regulatory instruments that promote equity, transparency and community ownership; and support environmental restoration and sustainable livelihoods in oil-bearing areas.
• To the National Assembly: Strengthen legislative oversight of settlors and HCDTs, undertake constituency visits to host communities, and review the PIA to address identified gaps and protect community rights.
• To NUPRC: Bolster regulatory capacity, enforce compliance, set up a public monitoring dashboard for HCDT performance, and mandate annual disclosure of 3% OPEX allocations by settlors.
• To Settlors (Oil & Gas Companies): Respect community autonomy in HCDT formation, ensure inclusive participatory planning, publish annual disclosures of funds remitted to HCDTs, and guarantee timely funding and accountability.
• To State and Local Governments: Integrate HCDT projects into local development plans, provide complementary infrastructure investments, and create state-level coordination desks for HCDT engagement.
• To Traditional and Community Institutions: Promote inclusive leadership, mediate conflicts fairly, and champion transparency in resource allocation.
• To Civil Society and Media: Continue advocacy, civic education and independent assessments; publish community scorecards on transparency and inclusion; and pursue public-interest journalism on extractive governance.

Call for Inclusive, Accountable Implementation

The summit concluded with a renewed call for inclusive leadership, gender-sensitive representation, and transparent financial reporting to ensure that host communities benefit meaningfully from Nigeria’s oil wealth. Delegates stressed that periodic review of the PIA, strengthened oversight and robust community engagement are essential to turning statutory provisions into tangible local development outcomes.