The House of Representatives Committee on Host Communities (HOSTCOM) has announced its intention to sponsor a legislative amendment to the Petroleum Industry Act (PIA) 2021. The proposed amendment aims to increase the statutory funding obligation of oil and gas companies to host communities from the current 3 percent of their annual operating expenditure to 6 percent. This significant disclosure was made following a joint retreat held at Protea Hotel, Owerri, which brought together the House Committee on HOSTCOM, the House Committee on Public Petitions, and HOSTCOM Trustees of the Niger Delta.

Hon. Dekor Dumnamene Robinson, Chairman of the HOSTCOM Committee and the expected lead for this amendment process, emphasized that the existing 3 percent allocation is no longer adequate to address the pressing development challenges faced by oil-producing communities. He stated that while 3 percent was a commendable starting point in 2021, five years of implementation have clearly demonstrated its insufficiency in meeting critical development needs. These needs include essential infrastructure such as schools, healthcare facilities, roads, and potable water, alongside crucial initiatives for youth employment, skills acquisition, and environmental remediation.

The proposed amendment will follow the established legislative process within the House of Representatives, supported by HOSTCOM Trustees across the Niger Delta. The retreat participants formally resolved that the amendment should be drafted and actively pursued through the House, backed by broad stakeholder support from the host communities. Additionally, a call was made to various stakeholders, including the Federal Ministry of Petroleum Resources, NNPCL, and the NUPRC, urging their support for the proposal in the interest of fostering peace and sustainable development throughout the Niger Delta region.

During the retreat, Professor Samuel Dike, an expert in Energy and Comparative Environmental Law, delivered a keynote address where he lauded the proposal as a major legislative advancement since the PIA's enactment. He affirmed that increasing the provision from 3 percent to 6 percent is both “fair, achievable, and consistent with the spirit of the Act.” Beyond the funding amendment, the retreat also recommended bolstering the HOSTCOM framework to ensure greater inclusion of women, youths, and other vital stakeholders within its governance structures. A communiqué summarizing these resolutions will be officially transmitted to the leadership of the National Assembly, President Bola Ahmed Tinubu, and other relevant authorities.