The National President of Host Communities of Nigeria Producing Oil and Gas (HOSTCOM), Dr. Benjamin Tamaranebi, has cautioned traditional rulers in oil-producing areas against bidding for contracts meant for development projects in their own communities. He said such actions violate the spirit and provisions of the Petroleum Industry Act (PIA) and could undermine transparency and accountability in project execution.
Tamaranebi gave the warning during a town hall meeting organised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in collaboration with HOSTCOM Project Management and Advisory Konsult Limited. The meeting was held for Host Communities Development Trusts (HCDTs) board of trustees and settlors from Imo and Abia states in Owerri, Imo State.
He explained that traditional rulers, by virtue of their positions, serve as heads of the boards of trustees of the host communities. As such, their primary responsibility is to oversee the awarding and execution of projects approved for the benefit of the communities. According to him, this supervisory role is compromised when monarchs attempt to award contracts to themselves or entities linked to them.
Tamaranebi stressed that the Petroleum Industry Act clearly outlines governance structures for host communities and is designed to promote fairness, accountability, and sustainable development. He noted that allowing conflicts of interest to thrive could derail the objectives of the Act and reignite tensions between oil companies and host communities.
He further stated that the introduction of the Petroleum Industry Act brought significant relief to many oil-producing communities across the country. The Act provides that three percent of the annual operating expenditure of oil and gas companies should be set aside for host communities development. According to Tamaranebi, this provision was intended to address long-standing neglect and environmental challenges faced by oil-bearing areas.
He urged community leaders to see the funds as a collective resource meant to improve livelihoods, infrastructure, and social services. He also called on all stakeholders to ensure that projects funded under the PIA are executed transparently and in line with approved guidelines.
In a keynote address at the event, the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission, Mrs. Oritsemeyiwa Eyesan, described the current framework as a new dawn for oil-producing communities. She said the commission is committed to ensuring that the benefits of the Petroleum Industry Act reach the intended beneficiaries.
Eyesan, who was represented at the event by Atama Daniel, encouraged communities that are yet to receive their 2024 funding allocations to formally lodge complaints with the commission. She assured participants that the NUPRC would investigate such complaints and take necessary steps to ensure compliance by operating companies.
She noted that the success of the host communities development framework depends on cooperation among regulators, community leaders, and industry operators. She added that transparency and adherence to established processes are critical to building trust and achieving sustainable development in oil-producing areas.
Also speaking at the town hall meeting, the Deputy Executive Director of the Environmental Defenders Network (EDEN), Johnson Abiye, called on regulators to ensure the smooth and effective implementation of the Petroleum Industry Act as it relates to host communities. He said proper enforcement of the law would help reduce conflicts and promote environmental justice.
Abiye expressed concern that several communities that should be recognized under HOSTCOM were omitted from the framework. He urged the relevant authorities to address the issue and ensure that all eligible communities are properly captured and included in the benefits of the Act.
He added that exclusion of some communities could lead to fresh grievances and undermine the objectives of the Petroleum Industry Act. He called for continuous engagement with grassroots stakeholders to identify gaps and resolve emerging challenges.
The town hall meeting provided a platform for dialogue between regulators, community representatives, and civil society groups. Participants emphasized the need for integrity, inclusiveness, and accountability in managing host community funds to ensure that oil-producing areas experience tangible development and long-term stability.
