Aggrieved oil-bearing communities in Delta State have threatened a major showdown with operators in Oil Mining Lease (OML) 26 over alleged non-compliance with provisions of the Petroleum Industry Act (PIA).
The warning was issued by the Isoko Grassroots Mobilizers, led by Comrade Erere Okpako and Comrade Angela Okpako, who accused the Asset Management Team of Sterling Global Oil Exploration and Energy Company, in partnership with NNPC Exploration and Production Limited (NEPL), of failing to operationalise the Host Community Development Trust (HCDT) as stipulated by law.
The group said it may be forced to take decisive action if the operators do not remit what it described as outstanding statutory contributions meant for host community development.
Citing Chapter 3 of the PIA, the stakeholders noted that oil companies are required to allocate three percent of their annual operating expenditure to the HCDT for community projects. However, they alleged that only a fraction of the expected funds was remitted in October 2025, nearly two years after the trust was inaugurated.
According to the group, the remittance fell short by about ₦2.4 billion, a development that has stalled critical infrastructure and social projects across affected communities.
They disclosed that the Board of Trustees of the HCDT raised concerns over the shortfall in November 2025, but received no immediate response from the operators. A follow-up virtual meeting held in December reportedly ended without resolution, despite assurances of further engagement.
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The dispute was later escalated to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which convened a tripartite meeting in Abuja on April 15, 2026. At the meeting, the operators reportedly claimed that the disputed funds were spent on “special intervention projects,” a position the communities rejected as inconsistent with the provisions of the PIA and existing Global Memorandum of Understanding.
The group argued that the transition period allowed under the PIA elapsed in August 2022, insisting that any deductions or adjustments outside the law are unacceptable.
They also expressed concern over what they described as a lack of visible development in OML 26 communities, stating that no significant project has been executed since the inauguration of the HCDT in February 2024.
Despite earlier interventions, including security meetings convened by the Isoko North Local Government Chairman, Hon. Godwin Ogorugba, the impasse has persisted.
While acknowledging the implications of potential disruptions to oil operations, the stakeholders maintained that continued neglect has left them with limited options.
The group called on the NUPRC and other relevant government agencies to compel the operators to remit the outstanding funds and ensure full compliance with the PIA to avert further escalation.
