By Atoyebi Nike
The Senate Committee on Host Communities has directed the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) to sanction International Oil Companies (IOCs) that fail to establish Host Communities Development Trusts (HCDTs) as required by the Petroleum Industry Act (PIA).
Chairman of the committee, Senator Benson Agadaga, issued the warning on Wednesday at the commissioning of seven projects funded by Total Energies through the Obagi Oilfield HCDT in Rivers State.
Agadaga said the relative peace in the Niger Delta shows the PIA’s impact, stressing that strict compliance is vital for stability and higher oil output. “Those who have not set up their HCDTs will be sanctioned because this is the only hope of peace and stability in the oil-producing areas,” he said.
The Obagi Trust projects, spanning infrastructure, health, agriculture, and empowerment, are part of 539 initiatives planned across 64 host communities. Rivers State Deputy Governor, Prof. Ngozi Odu, praised the progress, while Total Energies’ Managing Director, Matthieu Bouyer, reaffirmed the firm’s commitment to the Act.
NUPRC Chief Executive Gbenga Komolafe, represented by Executive Commissioner John Tonlagha, said the projects highlight how regulation can deliver tangible community benefits.
