HOSTCOM leaders, Reps move to amend PIA, seek increase of oil community fund to 6%

By Gift ChapiOdekina, Abuja

Leaders of oil-producing host communities in the Niger Delta and members of the House of Representatives have resolved to push for an amendment to the Petroleum Industry Act (PIA) 2021 to increase the statutory allocation to host communities from three percent to six percent.

The resolution was reached at the end of a joint retreat involving the House of Representatives Committee on Host Communities (HOSTCOM), the House Committee on Public Petitions, and HOSTCOM Trustees from across the Niger Delta, held at the Protea Hotel in Owerri.

Chairman of the House Committee on HOSTCOM, Dekor Dumnamene Robinson, disclosed that the committee would sponsor the proposed amendment in the House of Representatives, arguing that the current three percent provision had become inadequate to address the development needs of oil-bearing communities.

According to him, the experience gathered from five years of implementing the law showed that the existing allocation could no longer meet the pressing demands for infrastructure and social services in the region.

“Three per cent was a good start in 2021, but five years of implementation have shown clearly that it is insufficient to meet the critical development needs of our communities, including schools, healthcare, roads, potable water, youth employment, skills acquisition, and environmental remediation,” he said.

Robinson explained that the amendment would follow the constitutional legislative process in the House of Representatives with the support and collaboration of HOSTCOM Trustees across the Niger Delta.

The retreat formally resolved that the amendment should be drafted, presented, and pursued through the legislative process with the backing of host community representatives.

Participants also called on key stakeholders in the oil and gas sector, including the Federal Ministry of Petroleum Resources, the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Federation Account Allocation Committee (FAAC), to support the proposed amendment in the interest of peace, stability, and sustainable development in the Niger Delta.

Delivering the keynote address, S. C. Dike described the planned amendment as one of the most significant legislative efforts concerning the Niger Delta since the enactment of the PIA in 2021.

He noted that while the three percent allocation was celebrated as a major achievement when the law was passed, current realities had shown the need for a review.

“Section 240 of the PIA fixed our share at 3% of operating expenditure. In 2021, that was considered a victory. In 2026, it is no longer enough. Increasing the provision from 3% to 6% is the immediate legislative solution. It is fair, achievable, and consistent with the spirit and objectives of the Petroleum Industry Act,” he stated.

The retreat further resolved that the amendment should strengthen the HOSTCOM framework by promoting greater inclusion of women, youths, and other stakeholders in the governance structure of host community development trusts.

According to the communiqué issued at the end of the meeting, copies of the resolutions would be forwarded to the Speaker of the House of Representatives, the President of the Senate, President Bola Ahmed Tinubu, and other relevant authorities.

Stakeholders at the retreat stressed that the immediate priority of Niger Delta host communities was the increase of the HOSTCOM allocation from three percent to six percent, rather than the decentralisation of Tantita security contracts.

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