Civil-society groups have called on the Nigerian government to review the Petroleum Industry Act (PIA) to promote transparency, equity, and community ownership, after identifying key governance and implementation gaps in the Host Communities Development Trust (HCDT).
The call was contained in a communique issued after a two-day National Convergence on the HCDT, sponsored by Power of Voices/ Fair for All Coalition, with support from OXFAM in Nigeria.
The HCDT, held at the Golden Tulip Hotel, Port Harcourt, Rivers State, featured participation by CISLAC, BudgiT, STEPS, Ndebumog, Policy Alert and Kenetkache organizations,
During the HCDT, participants and stakeholders observed that public awareness of the Trust remained low, with many host communities still unaware of its objectives and operations — a situation that has bred misinformation and mistrust.
The groups said regulatory oversight by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) was weak, while gender and social exclusion persisted in HCDT structures, leaving women, youth, and marginalized groups underrepresented in governance and project planning.
They also cited governance and transparency gaps, political interference in the selection of trustees, and inadequate disclosure of trust constitutions, all of which they said had eroded community trust and accountability.
Other concerns included rising tension in some oil-bearing areas due to inequitable benefit-sharing, weak institutional capacity among trustees, environmental neglect, poor alignment with local development plans, and ambiguities in the PIA that give excessive power to oil companies known as “settlors.”
The convergence further noted the absence of coordination mechanisms and learning platforms across Trusts, resulting in fragmented implementation and poor knowledge sharing.
Based on these findings, participants urged the Federal Government to establish a policy framework for periodic review of the PIA, ensure that its fiscal and regulatory provisions promote fairness and community ownership, and support sustainable-livelihood and environmental-restoration initiatives in oil-producing regions.
The National Assembly was asked to enhance legislative oversight of both the settlors and the HCDTs, visit host communities to ensure people-centred and inclusive projects, and amend the Act to address provisions that limit community rights.
The NUPRC was urged to strengthen its regulatory capacity, enforce compliance, create a public monitoring dashboard, and mandate annual disclosure of the three-percent operating expenditure (OPEX) allocated to host communities.
To oil and gas companies, the groups recommended transparent communication, inclusive planning, gender sensitivity, and annual publication of funds distributed to HCDTs.
State and local governments were encouraged to align HCDT projects with local development plans, while traditional institutions were urged to promote transparency and fair conflict mediation. Civil-society groups were asked to sustain advocacy and independent monitoring, and the media to amplify community voices and expose malpractice.
Participants reaffirmed that the HCDT offers a “transformative opportunity” to rebuild trust between extractive industries and host communities, stressing that only transparency, inclusivity, and gender equity can ensure peace and sustainability in Nigeria’s oil-producing regions.
They resolved to advocate immediate reforms to close implementation gaps in the PIA, create a National HCDT Stakeholders’ Forum, and promote community-driven development aligned with Nigeria’s energy-transition and environmental-justice agenda.
Civil-society groups have urged Nigeria to review the Petroleum Industry Act after identifying weak oversight, poor awareness, and exclusion in the Host Communities Development Trust meant to benefit oil-producing regions.
