PIA: Court Bars NUPRC From Reviewing Gazetted Coastal Communities

In a significant legal victory for host communities, a Federal High Court sitting in Warri, Delta State, has delivered a landmark judgment compelling the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to proceed with the implementation of the Host Communities Development Trust provisions under the Petroleum Industry Act (PIA). The court unequivocally stated that the NUPRC lacks the legal standing to delay this process pending any review, emphasizing that only the National Boundary Commission (NBC) is empowered to delineate these critical areas.

The ruling, delivered on May 6, 2026, by Justice Hyeladzira Nganjiwa, directly addressed the contentious issue of who holds the authority to define the boundaries of oil-producing communities. The court affirmed that the statutory powers to determine and delineate littoral host communities for the PIA's Chapter 3 implementation rest solely with the NBC. Consequently, the NUPRC has been legally restrained from withholding the benefits due to communities already recognized and gazetted, even if claims of omissions arise.

This judicial intervention stemmed from a lawsuit filed by several community leaders and representatives, including Chief Joseph O. Wuruyai and Chief Matthew Pudie, against the NBC and the NUPRC. Their legal team sought clarity on the powers of the NBC under its establishment Act and the relevant PIA regulations. Specifically, they questioned whether the NBC's gazetted list of host communities, identified within 500 meters of coastlines across several states, was binding on the NUPRC for the implementation of the Host Communities Development Trust Fund.

The plaintiffs also challenged the NUPRC's competence to conduct its own delineations or reviews of communities already officially gazetted by the NBC. Justice Nganjiwa's judgment firmly established that the governing statutory provisions are 'clear and unambiguous.' The court's decision reinforces the principle of clear delineation of powers among government agencies and ensures that the benefits intended for host communities under the PIA are not unduly delayed due to inter-agency disputes or procedural ambiguities. This ruling is a crucial step in ensuring the effective implementation of the PIA and the equitable distribution of resources to the communities most directly impacted by oil and gas activities in Nigeria.

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From the foregoing, I am convinced and of the opinion that it is the 1st defendant (NBC) that is statutorily empowered to undertake the determination and delineation or delimitation of host communities, which includes li