Isoko Communities in the Niger Delta region of the country, have threatened to shutdown oil operations over non release of Host Community Development Trust (HCDT) funds.
Worried by the deplorable state of the communities as a result of decades of neglect by oil companies’ operations in these communities, the Petroleum Industry Act (PIA) of 2021, mandated that a fixed amount of money be set aside by the oil companies for the development of the communities.
The communities, however, expressed disappointment that for nearly two years after inauguration of AIO Host Community Development Trust (AIO HCDT) as mandated by the Petroleum Industry Act (PIA) of 2021, nothing has happened.
By the Act, Oil companies are expected to channel three percent of their Operating Expenditure (OPEX) to the HCDTs for the development of the host communities.
Of these funds, 75% is earmarked for infrastructure development while 20% and five percent are for investment and administrative purposes respectively.
In a statement jointly signed and issued on Sunday by Erere Okpako and Angela Akpofa, on behalf of the Isoko Grassroot Mobilizers, the Communities revealed that even the five percent that is to enable a proper take off has not been released let alone those for infrastructure and reserve.
“The various communities are visibly disturbed thus calling for a review of any relationship that exists between them and the oil companies particularly the Nigerian National Petroleum Company Exploration and Productions Limited (NEPL) operators of OML 26 and the new players, Sterling Global saying that unless something urgent is done, operations and activities of these companies may not be guaranteed.
“The AIO HCDT has been working without tools, not even office accommodation.
“Indeed, so many meetings have been held with the NEPL in Warri and Ozoro with the hope of resolving all grey areas but back and forth have been the ordeal of the HCDT and now the communities say enough is enough. “We wonder if PIA is a curse or a blessing?” one community leader who declines to be named lamented recently.
“Before the advent of the PIA and inauguration of the HCDTs, administration of Community activities were carried out under the Global Memorandum of Understanding (GMoU) as a doctrine of necessity thinking that a more structured PIA will make for easier and better administration but sadly, the situation has not been any way better,” the statement said.
It narrated that “earlier in October, 2025 NEPL communicated to the AIO Board of Trustees (BOT) Chairman the approval of the five percent administrative budget but as we write this, the bank account has not been funded thus creating more complications to operationalising the HCDT activities.
“While the agitated communities including the Isoko Youth Assembly spoil for a showdown with the oil companies, the BOT of the AIO HCDT is trapped between two difficult sides of the divide.
“Insiders at the NEPL however admitted that things are really slow but plead for the communities’ understanding,” the statement noted.
The Isoko stakeholders say the oil companies should not over reach their luck as “we can no longer allow them to take us for granted. We implore the operators to expedite actions to forestall any possible consequences that may result from a shutdown.”
The stakeholders also prevail on government interventions to save the situation and avoid economic losses to all.
