By Obas Esiedesa, Abuja

Four years into the implementation of the Petroleum Industry Act (PIA), Publish What You Pay Nigeria (PWYP) has expressed concern that the establishment of only 137 Host Community Development Trusts (HCDTs) is insufficient to address the needs of oil-bearing communities.

The group, therefore, called on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to expedite the establishment of the remaining HCDTs to adequately meet the development expectations of host communities in the oil and gas sector.

Speaking to journalists in Abuja at the close of a leadership onboarding retreat on Wednesday, National Coordinator of PWYP Nigeria, Dr. Erisa Danladi, stressed the need for greater transparency and accountability by the Nigerian government in the management of revenues from the extractive industries.

Dr. Danladi, who was flanked by PWYP Board Chairman, Mr. Mohammed Mustapha, and General Secretary, Mr. Tijan Bolton, also advocated for a review of certain aspects of the PIA to better serve host communities.

“The enactment of the Petroleum Industry Act in 2021 signified an important milestone towards entrenching transparency and accountability in the oil and gas sector. It also for the first time introduced provisions aimed at driving benefits from the sector hitherto marginalised and impoverished host communities.

“As the PIA marks its fourth year of its enactment, PWYP sees this as an important moment to review the implementation of key transparency reforms in the Act, including those related to open contracts and beneficial ownership transparency. We are also committed to making the Act yield meaning for our host communities.

“The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) recently published that 137 Host Community Development Trusts (HCDTs) have already been incorporated. While this is commendable, we call on the NUPRC to smoothen out regulatory bottlenecks that could be hindering the establushment of the remaining Trusts. We are also aware of governance challenges in the HCDT implementation and commit as a Campaign to engage with these issues both at the regulatory and community levels,” she stated.

The group called for stronger regulatory framework for the solid minerals sector, expressing concerns over the unregulated activities of foreign companies in the sector.

“We also demand stronger implementation of governance frameworks in our mining sector, especially those targeted at improving oversight at the subnational level. We condemn the unregulated operations of foreign mining companies in several Nigerian communities, and the resulting insecurity. We offer our support towards addressing these challenges and strengthening the ongoing review of the Nigeria Minerals and Mining Act 2007”.

Danladi stressed that as a coalition, “we are currently focused on driving an energy transition that leaves no one behind. Nigeria adopted an Energy Transition Plan in 2022 and has made ancillary commitments to climate action, including those contained in Nigeria’s Climate Change Act (2021) and the updated Nationally Determined Contributions (NDCs).

“We are determined as a coalition to engage these frameworks to ensure that Nigeria’s natural resources yield just and accountable outcomes for citizens and for climate. We will focus on ensuring that the shift from fossil fuels happens in a manner that does not compromise the livelihoods of extractive host communities. We will also ensure that the rising interest in our transition minerals is not only value-adding for our industry but does not repeat the mistakes of our oil and gas industry”, she added.