The Senate Committee on Host Communities has issued a stern directive to the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), urging it to punish International Oil Companies (IOCs) that continue to flout the Petroleum Industry Act (PIA) by failing to establish Host Communities Development Trusts (HCDTs).
Senate tells regulator to punish IOCs flouting PIA rules
At the commissioning of seven key projects executed under the Obagi Host Communities Development Trust in OML-58, Rivers State, the Chairman of the Senate Committee on Host Communities, Senator Benson Agadaga, emphasized that the time for leniency had passed. According to him, any IOC that disregards the clear provisions of the PIA will face sanctions.
Agadaga noted that the introduction of the PIA has already reduced hostility between oil companies and communities in the Niger Delta, creating a more stable environment for petroleum production.
He argued that sustaining this fragile peace requires full compliance with the law.
“Host communities are no longer as hostile because we all expect the PIA to deliver dividends, and now we are beginning to see the results,” Agadaga said.
“But IOCs that fail to set up their Host Communities Development Trusts after the three-month grace period should be sanctioned. This is the only way to guarantee peace and stability in oil-producing areas.”
The senator also stressed the importance of uninterrupted oil production, saying Nigeria must meet its target of producing at least two million barrels of crude oil per day.
The projects commissioned at the Obagi Oilfield covered diverse sectors, including infrastructure, healthcare, agriculture, skills development, and economic empowerment.
These projects were made possible by the framework of the PIA, which places host communities at the centre of development planning and implementation.
Agadaga challenged other IOCs and host communities yet to implement their projects to emulate the Obagi HCDT.
He insisted that the Senate tells regulator to punish IOCs flouting PIA rules because the law is clear and non-compliance undermines the peace-building process.
“We no longer want disruptions in production. Every IOC that ignores the PIA directives must face the consequences,” he declared.
Rivers State Deputy Governor, Prof. Ngozi Odu, who attended the event, praised the projects, recalling the years of inadequate infrastructure endured by the host communities.
She thanked TotalEnergies and its partners for respecting the PIA and recognized the role of President Bola Tinubu’s administration in creating the right environment for such investments.
On his part, the Managing Director of TotalEnergies E&P Nigeria, Matthieu Bouyer, explained that the Obagi HCDT was part of a broader commitment by the company.
He revealed that 539 projects had been identified for execution across 64 host communities, with the seven projects commissioned reflecting the priorities chosen by the people themselves.
Bouyer reaffirmed the company’s dedication to working with stakeholders for the full implementation of the PIA.
“We will continue to align with the spirit of the PIA to ensure sustainable socio-economic development of our host communities and Nigeria at large,” he said.
The Commission Chief Executive of the NUPRC, Gbenga Komolafe, represented by Executive Commissioner John Tonlagha, described the projects as a landmark achievement.
He highlighted that they demonstrate accountability, sustainability, and the value of dialogue over conflict.
According to Komolafe, the projects prove that Nigeria’s regulatory framework under the PIA is not only robust but effective in ensuring host communities benefit directly from petroleum resources.
“This is a true representation of what happens when laws are respected and communities are prioritized. Sustainable development thrives when ownership and peace take centre stage,” Komolafe noted.
Industry stakeholders say the Senate’s firm stance shows that the government is serious about enforcing compliance.
The repeated warning that the Senate tells regulator to punish IOCs flouting PIA rules underscores the importance of host community engagement in sustaining oil production and national revenue.
Analysts point out that failure by IOCs to establish HCDTs could trigger renewed unrest in the Niger Delta, disrupting production and undermining Nigeria’s economic recovery.
By insisting on sanctions, the Senate is positioning the PIA as a tool not just for governance but for stability and shared prosperity.
For the host communities, the successful commissioning of projects in Obagi signals a turning point.
Rather than being sidelined, they are now at the centre of planning and execution, with tangible benefits flowing directly to the grassroots.
Observers believe the call that the Senate tells regulator to punish IOCs flouting PIA rules will accelerate compliance across the sector, ensuring other oil-producing communities experience similar development.
As Nigeria continues its push to ramp up crude oil output and attract new investment, the effective implementation of the PIA will be critical.
With the Senate, NUPRC, and stakeholders aligned, the expectation is that host communities will no longer be left behind but will share in the benefits of Nigeria’s petroleum wealth.
