House C’tee on Petroleum Resources to amend PIA to increase oil companies’ contributions to Host Community to 10%

House of Representatives Committee on Petroleum Resources, Upstream, has said it would quickly amend the Petroleum Industry Act, PIA, to increase oil companies’ contributions to Host Community Development Trusts, from 3% to 10%. The Deputy Chairman of the House Committee on Petroleum Resources (Upstream), Hon. Sesi Oluwaseun Whingan, disclosed this in Port Harcourt during a stakeholder dialogue session. Whingan stated that the current 3% contribution is insufficient to address the decades of environmental degradation, poverty, and underdevelopment faced by oil host communities in Niger Delta. He said “In its current form, the 3% contribution by settlors is grossly inadequate to address decades of environmental degradation, poverty, and underdevelopment suffered by host communities. That is why I am leading efforts to amend Section 240 of the PIA. The bill has passed its first reading and is scheduled for second reading upon the House’s resumption.
“Increased Funding. The amendment seeks to boost HCDT funds to 10% to address environmental degradation, poverty, and underdevelopment in host communities. Legislative Initiative. The proposed amendment is part of a broader effort to ensure justice and equitable resource distribution to communities affected by oil exploration.” Whingan identified core challenges, including environmental degradation, poor infrastructure, high unemployment, and lack of transparency in the host communities, adding that  the 3% provision is insufficient.
He harped on the need for collective effort and inclusive policymaking to build a petroleum industry that is both productive and people-centered. He assured participants that his office remains open for continued dialogue and cooperation. “Our duty as lawmakers is to ensure that the wealth from our natural resources translates into tangible prosperity for the host communities. They deserve more than token gestures. They deserve meaningful investment in their future. To fix this, we must strengthen HCDT governance, enhance environmental remediation, boost development funding, and empower host communities to drive the process, ” Whingan said.
However,  Country Director of Stakeholder Democracy Network, SDN, Ms. Florence Ibok-Abasi, in her address highlighted the importance of active government engagement in unlocking the full potential of HCDTs.  Ibok-Abasi stressed that government involvement must not come with undue interference, preserving the independence and community-driven essence of these Trusts. She said “We must acknowledge that unlocking the full potential of the HCDT framework requires the active involvement of government at all levels. The government’s role is not merely supportive, it is essential. But this involvement must not come with undue interference. The independence and community-driven essence of these Trusts must be preserved.”