Senate urges regulator to punish IOCs violating PIA rules

Senate urges regulator to punish IOCs violating PIA rules

The Senate Committee on Host Communities has called on the Nigeria Upstream Petroleum Regulatory Commission to sanction International Oil Companies (IOCs) that fail to comply with the Petroleum Industry Act (PIA) requirement to establish Host Communities Development Trusts (HCDTs).

The committee noted that the implementation of the PIA has helped ease tensions between oil firms and their host communities, fostering relative peace in the Niger Delta region.

Chairman of the committee, Senator Benson Agadaga, made the remarks on Wednesday during the commissioning of seven major projects by TotalEnergies at the Obagi Oilfield Host Communities Development Trust in OML-58, Ogba/Egbema/Ndoni Local Government Area of Rivers State.

Agadaga stressed that with peace gradually returning to the region, oil firms that disregard the law would face necessary sanctions. He added: “Host communities are no longer as hostile because we all expect the PIA to deliver the promised benefits—and now we are beginning to see them.”

“There is a pronouncement on the PIA for IoCs to set up the HCDT, and where they fail to do so after three months, they will be sanctioned.

Those who have not done it will be sanctioned because this is the only hope of peace and stability in the oil-producing areas.

“We no longer want disruptions in our productions; we need maximum production, we need to meet targets of at least two million barrels per day, so we don’t want any interruptions.”

He challenged other host community development trusts that are yet to implement theirs to emulate what the Obagi HCDT has done.

“I call on the host communities that are yet to have projects to be commissioned to do so now, also call on other International Oil Companies, IOCs, to set up their own HCDTS. It is against the PIA if you don’t set up your own community development trust.

“NUPRC in your regulatory functions, take special note of those who have not set up their Host Community Development Trust and take stringent measures against them according to the law, “ the Senate Host Communities chairman said..

“There is a pronouncement where you fail to do it after three months, you have sanctions. So those who have not done it should be sanctioned because this is the only hope of peace and stability in the oil-producing areas.”

He described the projects as significant and urged the youths and people of the area to own and protect the projects. The projects, which spanned through infrastructure, health facilities, agriculture, livelihood support, human capacity development, and economic empowerment, among others, were sequel to the establishment of the HCDTs PIA, 2021, which placed communities at the centre of development planning and execution.

Speaking, Rivers State Deputy Governor, Prof Ngozi Odu, recalled the challenges faced by the people, especially poor infrastructure, before the implementation of the projects. She commended Total Energies and its partners for implementing the PIA and thanked President Bola Tinubu and members of the National Assembly for creating the enabling environment to achieve such milestones.

The Managing Director of Total Energies E&P Nigeria Limited, Matthieu Bouyer, stated that within the Community Development Plan of the HCDT, a total of 539 projects were identified and approved for implementation across 64 host communities Of the number, Bouyer said seven projects commissioned were an embodiment of priorities identified by the community as captured in the CDP and diligently executed by the Board of Trustees and Management Committee, chosen by their people.

Agadaga commended TotalEnergies for aligning with the spirit and intent of the Petroleum Industry Act by incorporating and funding five Host Communities Development Trusts (HCDTs), including the Obagi HCDT. He pledged continued collaboration with industry stakeholders to ensure the effective implementation of the PIA for the sustainable socio-economic growth of host communities and the country at large. “Let these projects serve you and generations to come,” he added.

Also speaking at the event, the Commission Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, described the projects as a testament to wisdom, accountability, and diligence. Represented by the Executive Commissioner for Health, Safety and Environment, John Tonlagha, Komolafe said the milestone reflects meaningful impacts on lives while strengthening sustainability.

“This achievement proves that prioritising dialogue over conflict makes real progress possible. Sustainable development can only thrive with community support and ownership,” he noted. “Today, you have shown Nigeria and the world that true progress is built on unity and peace. These projects mark a major success for NUPRC, demonstrating that our regulatory framework is not only robust but also effective in ensuring host communities benefit directly from petroleum resources. The future of our industry lies not only in revenue generation but also in uplifting our communities.”

Komolafe also expressed gratitude to President Bola Tinubu for his commitment to advancing development in host communities and creating an enabling environment for such initiatives. He urged community members to take ownership of the projects and ensure they continue to serve present and future generations.