By Nwankpa Chijioke

The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) has urged state governments in the Niger Delta to allocate a portion of the 13% derivation fund to the Host Communities Development Board of Trustees (HCDTs) to accelerate development in oil-producing areas.

National President of HOSTCOM, His Highness Dr. Benjamin Style-Tamaranebi, made the call during a town hall meeting with HCDTs and settlors in Port Harcourt, Rivers State, on Friday.

Dr. Tamaranebi noted that the 3% Petroleum Industry Act (PIA) fund is already driving development in host communities, but the 13% derivation — originally intended for community development — has been politicised and largely retained by state governments.

“Remember we have 13% derivation funds coming to the communities. That fund was not left for only the state governments, but for the development of host communities,” he said. “The government has politicised the fund without recourse to the real host communities that produce oil and gas.”

He added: “Now we are looking forward for the state governments to do the same on the 13% derivation. The 13% derivation is key and paramount to the lives of host communities. Now that the PIA is on board, we call on the state governments to respectfully release part of the 13% derivation to the Trust to complement the Trust so that we can work together.”

Dr. Tamaranebi lamented that ongoing litigations over leadership positions in HCDTs are delaying projects funded by the 3% PIA allocation. He also criticised demands by some committee members to exceed the statutory 5% administrative cost limit, warning that diverting funds from the 75% earmarked for community development projects would undermine progress.

He advised communities to protect oil infrastructure, citing Section 257(2) of the PIA, which states that prolonged oil spills could exhaust annual funds needed for repairs. “If pipe has been broken and oil flowed from the pipe for one day all the money gotten for the year will not be enough to repair. So guide our facility jealously,” he said.

The HOSTCOM president welcomed the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) establishment of a dispute resolution centre in Yenagoa, Bayelsa State, urging aggrieved communities and companies to utilise the facility.

In a keynote address delivered on her behalf by Assistant Director Success Ikpe, NUPRC Chief Executive Mrs. Oritsemeyiwa Eyesan described the PIA as a landmark achievement that introduced a transparent framework for Host Community Development Trusts.

“The success of HCDTs requires collective commitment from all stakeholders — government, traditional rulers, oil companies, and the communities themselves,” she said. “The NUPRC remains dedicated to regulatory oversight, policy support, and technical assistance to ensure host communities thrive alongside the petroleum industry.”

The town hall aimed to sensitise communities on the implementation of the PIA and foster collaboration for sustainable development in oil-bearing areas.