Stakeholders in the oil and gas sector have expressed worry over the inefficient implementation of Host Communities Development Trusts (HCDT) Funds as provided by the Petroleum Industry Act (PIA) 2021 for host communities to leverage upon and benefit.
This was the focal point of the 2-day dialogue on exploring host community beneficiation provisions within the PIA organised by Legislative Advocacy Centre (CISLAC) with support from Oxfam in Nigeria, recently.
The meeting had participants which included; representatives of Host Community Development Trusts (HCDTs) from Ibeno, Eket, Mbo, Esit Eket, Uruan, Ikot Abasi LGAs, the Akwa Ibom State Ministry of Environment/Mineral Resources, the former Vice Chairman of Ibeno LGA, National Oil Spill Detection and Response Agency (NOSDRA), Civil Society Organisations (CSOs) and the media.
CSOs charge media to demand financial transparency in extractive sector
The workshop was to examine the potential impact, implementation challenges, and opportunities for optimal community benefit of the HCDT provisions.
In his welcome remark, Mr. Ayo Omuwu, the Senior Program Officer, Civil Society Legislative Advocacy Centre, CISLAC, welcomed participants and urged them to optimally engage in the discussions so that workable recommendations will be proffered to the gaps observed in the implementation of the HCDT.
In their respective goodwill messages, Engr. Anietie Emah, Head Petroleum Resources Directorate of the Ministry of Environment/Mineral Resources; and Engr. Melvis Odobo, Head NOSDRA, Uyo Zonal Office, noted that the dialogue was timely to better frame the challenges and enlighten stakeholders.
Speaking on the theme, “A Pathway to Sustainable Development and Unlocking Host Community Benefits in PIA”, different papers were presented by resource persons to examine the challenges encountered in the implementation of the HCDT.
The resource persons were; Mr. Mfon Gabriel – Executive Director of Citizens Advocacy Centre; Mr. Edidiong Dickson of Policy Alerts; and Precious Igboanugo, OXFAM representative.
Speaking on the topics, “Structures and Functions of the Host Community Trust”; and “Unpacking the HCDT Provisions”, Mr. Mfon Gabriel analysed the various channels of engagement for host communities and other stakeholders who seek to utilise effectively the benefits of HCDT for community good. He also talked about the various functions of the Board of Trustees, Management Committee, and Advisory Committee of the HCDT.
While Edidiong Dickson speaking on the “Socioeconomic Discontent and Environmental Degradation through the PIA”; and “Robust Enforcement Mechanism for Effective Implementation,” dissected the impact of oil exploration on host communities as well as the objectives of the HCDT provisions which include fostering sustenable prosperity within the host communities and the relevant sections of the PIA, respectively.
At the end of the 2-day dialogue, the following were the recommendations from the challenges observed in the effective implementation of HCDT,
“NEITI should disaggregate their data per asset for the HCDT as they did for CSR in the simplified 2024 Oil and Gas Industry Audit Report.
“The BOT and management committees of HCDTs should practice proactive disclosure of their data, especially on funds received, projects and programs implemented, beneficiaries, cost, contractors, etc.
“All HCDTs should set up a digital platform like a website to host all their data online to ease access and promote transparency.
“State Governments should synergize between HCDTs and LGA to ensure there is no duplication of projects in host communities.
“NUPRC should respond to the requests and furnish HCDTs and the public with data on the 3% OPEX revenue paid by settlors and how this is calculated transparently.
“NUPRC should give disclosure of how the Gas Flare penalty of all settlors are being utilized to address ecological footprint,” amongst others.
