Delta communities protest alleged non-payment of 3% OPEX funds by oil firm

Residents of host communities for Oando Energy Resources Limited in Delta State, Nigeria, staged peaceful protests demanding the immediate payment of their 3% Operating Expenses (OPEX) Development Funds. The communities of Okpai, Beneku, and Umusadege in Ndokwa East and Ndokwa West Local Government Areas are owed these funds for the years 2024, 2025, and 2026.

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It is unacceptable and disappointing that despite repeated engagements and reminders to your company by members of the Ndokwa Host Community Development Trust, these funds remain unpaid.

Community leaders expressed significant displeasure over the prolonged delay in releasing the funds. Comrade Bernard Ibuaka, Chairman of the Okpai Oando Committee, Mr. Innocent Okpor of the Beneku Clan Community Development Committee, and Mr. Amuma Victor, Chairman of Umusadege Community on Oando, all voiced their concerns separately.

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The continued withholding of these funds has led to growing tension, dissatisfaction, and unrest among community members.

A formal letter addressed to Oando's General Manager in Port Harcourt detailed the communities' frustration. The letter, signed by leaders of the Okpai Oando Committee, described the non-payment as "unacceptable and disappointing," noting that repeated engagements and reminders have been ignored. This delay has severely hampered development efforts, stalled crucial projects aimed at improving livelihoods and infrastructure, and caused economic losses.

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Projects that were meant to improve livelihoods and infrastructure have been stalled, thereby creating avoidable hardship and economic losses for the host communities.

Furthermore, the communities highlighted that the continued withholding of these funds has prevented them from investing statutory 20% reserve funds, thus depriving them of potential interest and financial benefits over the past three years. The letter unequivocally stated that the situation is "no longer tolerated" and demanded the immediate release of the outstanding OPEX funds in compliance with the Petroleum Industry Act 2021 and NUPRC regulations.

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In view of the above, we wish to state unequivocally that the current situation can no longer be tolerated and therefore we demand the immediate release of the outstanding 3% Opex owed to the Host communities in accordance with the Petroleum Industry Act 2021 and the NUPRC regulations, 2022.