Niger Delta Push for Bigger Oil Share: Reps Move to Double Host Community Fund
Nigeria's House of Representatives Committee on Host Communities plans to amend the Petroleum Industry Act, seeking to double the funding obligation of oil and gas companies to host communities from 3% to 6%. This move aims to address critical development needs, as the current allocation is deemed insufficient. The proposal has received expert backing and calls for broad stakeholder support.
The House of Representatives Committee on Host Communities (HOSTCOM) has proposed a key amendment to the Petroleum Industry Act (PIA) 2021, seeking to increase the statutory contribution of oil and gas companies to host communities from 3 percent to 6 percent of annual operating expenditure.
The proposal was disclosed after a joint retreat involving House committees and HOSTCOM trustees held in Owerri, where stakeholders reviewed the effectiveness of the current framework.
Committee Chairman Hon. Dekor Dumnamene Robinson argued that the existing 3 percent allocation is insufficient to address persistent development gaps in oil-producing communities.
He cited continued deficits in infrastructure, healthcare, education, clean water, employment opportunities, and environmental remediation, stressing that a higher allocation is necessary to reflect ground realities five years after the law’s implementation.
Stakeholders at the retreat, including legal and energy experts, backed the proposal, describing it as consistent with the spirit of the PIA and essential for sustainable development in the Niger Delta.
The committee also called for inclusion of women and youth in HOSTCOM structures, while urging federal agencies and industry regulators to support the amendment as it advances through the National Assembly.