The House of Representatives Committee on Petroleum Resources (Upstream) has proposed an amendment to the Petroleum Industry Act (PIA) to significantly increase the share allocated to Host Community Development Trusts (HCDTs) from 3% to 10%.
Hon. Sesi Oluwaseun Whingan, Deputy Chairman of the committee, made this known during a stakeholder dialogue session in Port Harcourt. According to Whingan, the current 3% contribution by oil companies is not enough to address the long-standing issues of environmental damage, poverty, and underdevelopment in the Niger Delta.
“In its present form, the 3% contribution by settlors falls far short of what is needed to fix the decades of environmental destruction and neglect suffered by host communities,” Whingan stated. “That’s why I’m leading the amendment of Section 240 of the PIA. The bill has already passed the first reading and will move to the second reading once the House reconvenes.”
Whingan explained that the amendment is a legislative push to ensure oil-host communities benefit more substantially from the wealth generated in their environment. He identified critical issues like environmental degradation, lack of infrastructure, unemployment, and lack of transparency as reasons why the amendment is urgent.
“Our aim as lawmakers is to ensure that our natural wealth translates into real, visible development for host communities,” he said. “It’s not enough to offer token gestures. We must invest in their future in meaningful ways.”
He also emphasized the need to improve the governance of HCDTs, enhance environmental restoration, increase development funds, and empower local communities to actively participate in their development.
Ms. Florence Ibok-Abasi, the Country Director of Stakeholder Democracy Network (SDN), also addressed the gathering, stressing the need for proactive government participation in strengthening the HCDT framework. However, she warned that such involvement should not erode the independence of the Trusts.
“We must ensure that government involvement supports rather than controls the Trusts,” Ibok-Abasi stated. “These Trusts must remain community-driven and independent if they are to succeed.”
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