The House of Representatives has said the unending lawsuits concerning Host Communities’ Development Trust are undermining the benefits and purpose of the Petroleum Industry Act to the communities.
- +Litigations stalling PIA benefits for host communities — Reps
The House said the PIA, which came into effect in 2021, has changed the approach to host community development by moving the system away from informal arrangements and occasional corporate social responsibility projects to a structured legal framework.
The House said the PIA, which came into effect in 2021, has changed the approach to host community development by moving the system away from informal arrangements and occasional corporate social responsibility projects to a structured legal framework.
The Chairman, House of Representatives Committee on Host Communities, Dumnamene Dekor, stated this at the ‘Sensitisation and Engagement Forum on Operationalisation of The Midstream Host Community Development Trusts’; organised by Nigerian Midstream and Downstream Petroleum Regulatory Authority in Port Harcourt.
Dekor explain that the PIA has empowered the communities to determine what they want (project wise) and not being given stipends as it may please the ‘settlors’ (companies).
“Under the Act, Host Community Development Trust is to be implemented through a formal Host Community Development Trust, supported by defined funding obligations, governance structures, needs assessments, development plans, and accountability mechanisms.
Dekor added that there are penalties for flouting the host communities’ development trust by those managing on behalf of their people, saying, “If the settlors are not there, then the activities are not going on. Then if activities are going on and the communities are not having a buy-in, then it becomes a problem.”
“Our responsibility (House Committee) is to make sure that all that has to do with the PIA concerning the three percent that is meant for the host communities, we oversight it up to the implementation,” he said.
Dekor commended the NMDPRA for convening the forum to educate and engage the stakeholders who will drive the implementation of the host community development framework under sections 234 to 257 of the Petroleum Industry Act.
“The implementation of the Midstream Host Community Development Trust must therefore be handled with seriousness, transparency, and fairness. It is not enough to establish trusts on paper.
“Let me use this opportunity to also advise the host communities because what we found out is that in the course of putting the management structure together, you find a lot of communities in court.
“They have issues that they cannot resolve, and then the actual aim of this law (PIA) is defeated because the companies, so to speak are there with their funds ready. They just cannot be operated because the communities have not been able to resolve issues.
“So you (communities) must sheathe your swords and make sure that you take advantage of this opportunity that has been brought to us by the special grace of God and the PIA,” he added.
Earlier in his address, Chief Executive of the NMDPRA, Mr Rabiu Umar said the authority has developed a digital portal to monitor statutory contributions by the oil and gas operators, compliance reporting, project tracking, and real-time regulatory oversight as provided by the PIA.
Umar, who was represented by the NMDPRA Executive Director, Health, Safety, Environment and Community, Dr Mustapha Kamorde, said the initiative is part of the agency’s commitment to transparency, accountability and regulatory efficiency.
The authority boss explained that the digital portal will also support the digital registration of trusts, submission of governance documentation and other oversight in the Host Community Development Trust.
“As part of our commitment to transparency, accountability and regulatory efficiency, the Authority has developed a dedicated HCDT Digital Portal. The portal is designed to support digital registration of Trusts, submission of governance documentation, monitoring of statutory contributions, compliance reporting, project tracking and real-time regulatory oversight.
“This digital platform represents a major step in the Authority’s broader digital transformation agenda. It will help standardise implementation nationwide, reduce disputes arising from information gaps, improve monitoring capabilities, and strengthen confidence among communities and operators alike.
“Importantly, the portal will also improve transparency in the administration and utilisation of the Host Community Development Trust Funds,” he stated.
