PIA host community trust came under renewed scrutiny as stakeholders in Akwa Ibom State called for key amendments to improve benefits for oil-producing communities.
Advocates, activists and stakeholders in the state’s extractive justice sector urged the Federal Government to amend the Petroleum Industry Act (PIA) 2021, increasing the host community trust remittance from 3 per cent to 7 per cent. The call was made during a Multi-Stakeholder Dialogue on Natural Resource Governance, Just Transition, Environmental Justice and Community Accountability held in Uyo.
The dialogue brought together the Akwa Ibom State Ministry of Environment and Mineral Resources, the Akwa Ibom Extractive Justice Alliance (AKEJA), the Clement Isong Foundation (CIF), ActionAid Nigeria and other stakeholders. They argued that increasing the PIA host community trust allocation would better address the environmental challenges affecting host communities.
In a communiqué issued after the meeting, the participants also demanded an amendment to Section 257 of the PIA. They said the provision that reduces the 3 per cent remittance when pipeline vandalism occurs should be removed, stressing that host communities should not be punished for security failures beyond their control. According to the communiqué, “The Petroleum Industry Act of 2021 be amended to increase the host community trust remittance from 3 to 7 percent, to adequately address the environmental challenges facing host communities. Section 257 of the PIA should be amended to remove the provision reducing the 3 percent remittance in the event of pipeline vandalisation.”
The stakeholders further called for the National Oil Spill Detection and Response Agency (NOSDRA) to receive stronger powers to enforce environmental safety measures and respond more effectively to oil spill incidents. They also urged regulators to ensure that Host Community Development Trusts (HCDTs) reserve at least 30 per cent representation for women and young people while adopting transparent governance, annual public reporting and greater inclusion of persons with disabilities.
In addition, the participants encouraged HCDTs to invest in renewable energy, green skills, agroecology, community-owned energy projects, mangrove restoration and youth entrepreneurship. They believe these reforms to the PIA host community trust framework would strengthen environmental protection and promote sustainable development in oil-producing communities.
Do you think increasing the host community trust fund would improve development in Nigeria’s oil-producing communities?
