Litigation stalls PIA benefits for host communities, lawmakers say

Lawmakers in Nigeria's House of Representatives are highlighting how ongoing legal disputes are obstructing the intended benefits of the Petroleum Industry Act (PIA) for communities hosting oil and gas infrastructure. The PIA, implemented in 2021, established a formal framework for Host Community Development Trusts, replacing previous informal arrangements and corporate social responsibility projects.

According to Dumnamene Dekor, Chairman of the House Committee on Host Communities, the Act empowers communities to define their own development projects rather than relying on arbitrary stipends from companies. He explained that the trusts are meant to be supported by defined funding, governance structures, needs assessments, development plans, and accountability mechanisms.

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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.

Dekor noted that companies holding funds are unable to disburse them because communities are embroiled in internal court cases. He urged community members to resolve their differences, stating, "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."

The committee is responsible for overseeing the implementation of the three percent allocation meant for host communities under the PIA. Dekor commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority for organizing a forum to sensitize stakeholders on operationalizing these trusts.

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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.