…Reaffirms Commitment to PIA 2021 Implementation

By Nnasom David

ODE-UGBO, ONDO STATE — The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reaffirmed its commitment to the full implementation of the Petroleum Industry Act (PIA) 2021, pledging strict compliance by oil companies (Settlors) and Host Communities Development Trusts (HCDTs) and their governing bodies.

This assurance was given during a sensitization workshop held at Obamakin Osangangan Hall in Ode-Ugbo, Ilaje Local Government Area of Ondo State, where key stakeholders, community leaders, and host community representatives from Ugboland and Ogborikoko gathered.

Representing the NUPRC Chief Executive, Engr. (Dr.) Gbenga Komolafe, were senior Commission officials Mrs. Arowosage G. and Mr. Muyiwa Ezekiel. They reiterated the Commission’s resolve to ensure upstream operating companies comply fully with the provisions of the PIA 2021, particularly in establishing and operationalizing the Host Communities Development Trusts and their organs.

They encouraged host communities to actively nominate credible individuals to the Boards of Trustees and collaborate with the Commission and oil companies to promote transparency, accountability, and sustainable development.

Describing the PIA as a “new dawn and game changer” for both petroleum companies and their host communities, Komolafe emphasized the Act’s focus on delivering direct social benefits to communities.

He disclosed that communities which had completed their needs assessments and submitted Community Development Plans (CDPs) would soon begin receiving funds for project execution. He stressed that communities now have a say in the utilization of these funds through structured consultations.

Komolafe also urged host communities to protect oil installations, warning that acts of vandalism or operational disruptions could reduce funding allocations.

Speaking earlier, High Chief George Bucknor, Managing Director of Mecco and Marine Holdings Ltd and workshop consultant, said the event was organized to enlighten host communities on the sustainable development goals outlined in Chapter 3 of the PIA.

He highlighted key objectives including ensuring host communities receive direct social and economic benefits, monitoring compliance by Settlors and Trustees, and establishing effective governance and dispute resolution mechanisms.

During the interactive session, participants raised a variety of concerns. Associate Professor of Economics, Dr. Ademibo Akingboye, questioned the defined role of state governments under Chapter 3 of the PIA, while Otumba Erejuwa Adesina criticized perceived divisive tactics by some oil firms that undermine traditional institutions.

Dr. Tomola Emaleku, Chairman of the Ogborikoko HCDT, alleged non-compliance by Settlors who have yet to remit the mandated 3% of their operational expenses (OPEX), despite repeated requests.

Another community leader, Mr. Meduoye Olufemi, described the workshop as highly enlightening and called for more regular engagements of this nature.

In his royal address, the Olugbo of Ugbo, Oba Fredrick Akinruntan, commended the Commission for organizing the workshop, noting that it gave host communities a platform to air their grievances and seek clarity on oil-related issues. He urged NUPRC to ensure oil companies release community development funds as at when due.

Oba Andrew Kolawole Ikuesan, Olubo of Obe-Nla Kingdom, requested that the Commission establish an Alternative Dispute Resolution Centre in Ondo State to bring conflict resolution closer to oil-producing communities in Ilaje.

Also lending his voice, the Odoka of Obe Ogbaro, Oba Modademu Ogbaro, appealed to the NUPRC to actively protect host communities from being shortchanged by oil firms operating in their territories.

The sensitization programme drew attendance from Ondo State government officials, security agencies, traditional rulers, critical stakeholders in the oil and gas sector, and representatives of the Nigerian Navy.