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•As SDN emphasizes govt’s role in unlocking full potentials of HCDT
Emma Sunday
The Deputy Chairman of the Federal House Of Representatives’ Committee on Petroleum Resources (Upstream), Hon. Sesi Oluwaseun Whingan, has revealed that the National Assembly has commenced moves to amend the Petroleum Industry Act (PIA).
Hon. Sesi Whingan who represents Badagry Federal Constituency of Lagos State, at the House of Representatives said the Assembly is currently on the process of amending the PIA Bill to increase oil companies’ contributions to Host Community Development Trusts (HCDTs) from 3% to 10%.
Hon. Whingan dropped the hint while delivery a keynote address 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).
According to him, the bill to amend the PIA has passed it’s first reading at the National Assembly and is scheduled for second reading when the House resumes.
The lawmaker 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 stated that; “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 assured participants at the meeting that his office remains open for continued dialogue and cooperation.
“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,” he said.
Earlier 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.
IbokAbasi highlighted the importance of active government engagement in unlocking the full potential of HCDTs.
She stressed that government involvement must not come with undue interference, preserving the independence and community-driven essence of these Trusts.
She said, “The essence of this dialogue is to establish the roles the government can play in the in the process because, the PIA actually excluded any mention of the government and it’s specific responsibility or function within the HCDT process.
“So, we are here with different stakeholders to ascertain what some of those responsibility can actually be.
“People need to recognize that the HCDTs do not exist in isolation, they exist within a context, within a political environment and part of government structure which actually run by local and state governments.
“So, it is important that those roles need to be acknowledged in order for it to actually work effectively and be sustainable because this is extremely important.
“We must acknowledge that unlocking the full potential of the HCDT framework requires the active involvement of government at all levels. The government’s role is not merely supportive, it is essential. But this involvement must not come with undue interference. The independence and community-driven essence of these Trusts must be preserved,” she said.
Facilitator of the dialogue, Dr. Austin Onuoha, commended organisers of the meeting, and advised the HCDTs do reduce their focus on palliatives sharing, and do more of building livelihoods and human capacity development.
Onuoha, why calling on the government to live up and stand up to their responsibilities, also advocated for development coordination among all development agencies at all levels of governance, especially in the Niger Delta and South South region.
One of the participants, and former Vice Chancellor of the Rivers State University of Science and Technology, Professor Barineme Fakae described the move by the House of Representatives to amend the PIA and increase the HCDT funding to 10% as a good news, and commended the SDN her partners for raising the dialogue.
Being here and hearing the announcement from the lawmakers in the House, talking about still pursuing the increase of the percentage to host communities, it is a good news. But like I said, increases or as it were, it is important to be effective in the practice of how the trust runs, that is how we can have benefit.”
