The Senate Committee on Host Communities has called on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to impose sanctions on International Oil Companies (IOCs) that fail to comply with the Petroleum Industry Act (PIA) by establishing Host Communities Development Trusts (HCDTs).
Speaking on Wednesday during the commissioning of seven new projects by TotalEnergies in Obagi Oilfield under OML-58, Chairman of the committee, Senator Benson Agadaga, stressed that any oil firm flouting the law after the stipulated three-month grace period must face penalties.
“There is a pronouncement on the PIA for IOCs to set up HCDTs. Where they fail to do so after three months, they will be sanctioned,” Agadaga said.
He praised the significant reduction in conflict between host communities and oil firms, attributing the peace in the Niger Delta to the implementation of the PIA and the rollout of community development projects.
“Host communities are no longer as hostile because we are beginning to see the expected dividends of the PIA,” he noted. “This is the only hope of peace and stability in the oil-producing areas.”
The event marked the commissioning of seven infrastructure and social impact projects spanning healthcare, agriculture, education, and economic empowerment delivered through the Obagi Host Community Development Trust.
TotalEnergies’ Managing Director, Matthieu Bouyer, revealed that the company had identified and approved 539 projects across 64 host communities as part of its Community Development Plan.
“These seven commissioned projects reflect the priorities identified by the communities themselves,” Bouyer said. “We have already incorporated and funded five HCDTs, including Obagi. Our commitment to the spirit and intent of the PIA remains strong.”
He reaffirmed the company’s pledge to continue working with stakeholders to ensure sustainable socio-economic development in host communities.
Representing the Commission Chief Executive of the NUPRC, Executive Commissioner John Tonlagha described the development as a tangible result of Nigeria’s petroleum reform efforts.
“This is not just a milestone; it’s a demonstration of what happens when accountability, wisdom, and collaboration take the lead,” he said. “The PIA is working, and these projects are proof that the regulatory framework is delivering real results.”
He also credited President Bola Tinubu’s administration for creating the enabling environment to drive host community development and industry compliance.
Also speaking at the event, Rivers State Deputy Governor, Prof. Ngozi Odu, lauded the initiatives, recalling the longstanding infrastructural challenges in the region prior to the implementation of the PIA.
“We thank TotalEnergies and its partners for their commitment and appreciate the Federal Government for the legislative and policy frameworks that made this possible,” she said.
Agadaga issued a stern warning to other IOCs and host communities yet to implement or commission projects under their HCDTs. He urged the NUPRC to take “stringent regulatory action” against defaulters, in accordance with the PIA.
“We need maximum production. Nigeria must meet its target of at least two million barrels per day. Any interruption due to community unrest caused by non-compliance is unacceptable,” he declared.
He also urged communities to take ownership of completed projects and protect them for future generations.
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