The Deputy Chairman of the Federal House Of Representatives’ Committee on Petroleum Resources (Upstream), Hon. Sesi Oluwaseun Whingan, says the National Assembly is currently on the process of amending the Petroleum Industry Act Bill to increase oil companies’ contributions to Host Community Development Trusts (HCDTs) from 3% to 10%.
Whingan, who represents Badagry Federal Constituency of Lagos State, disclosed this at a one day dialogue meeting between oil companies, communities, critical stakeholders and government representatives, organised by the Stakeholder Democracy Network (SDN), an organisation funded by the European Union, (EU).
The bill to amend the PIA,he said, has passed it’s first reading at the National Assembly and is scheduled for second reading when the House resumes.
He emphasized that the current 3% contribution to oil producing host communities, is insufficient to address decades of environmental degradation, poverty, and underdevelopment faced by host communities in the Niger Delta region.
He added:”In it’s current form, the 3% contribution by settlers is grossly inadequate to address decades of environmental degradation, poverty, and underdevelopment suffered by host communities. That is why I am leading efforts to amend Section 240 of the PIA.
“The bill has passed it’s first reading and is scheduled for second reading upon the House’s resumption.
“The amendment seeks to increase or boost HCDT funds to 10% to address environmental degradation, poverty, and underdevelopment in host communities.
“The proposed amendment is part of a broader effort to ensure justice and equitable resource distribution to communities affected by oil exploration.”
He identified core challenges, including environmental degradation, poor infrastructure, high level of unemployment, and lack of transparency in HCDT operations, while emphasising the need for collective effort and inclusive policymaking to build a petroleum industry that is both productive and people-centered.
He said:”Our duty as lawmakers is to ensure that the wealth from our natural resources translates into tangible prosperity for the host communities. They deserve more than token gestures. They deserve meaningful investment in their future.
“To fix this, we must strengthen HCDT governance, enhance environmental remediation, boost development funding, and empower host communities to drive the process.”
In her welcome address, Country Director of Stakeholder Democracy Network (SDN), Ms. Florence IbokAbasi, said the dialogue focuses on exploring the roles of government at different levels in the HCDT process.
She highlighted the import of active government engagement in unlocking the full potential of HCDTs.
She emphasized that government’s involvement must not come with undue interference, preserving the independence and community-driven essence of these Trusts.
