The House of Representatives has ordered a full-scale investigation into the failure of oil and gas companies to remit the mandatory three per cent of their annual operating expenditure to the Host Communities Development Trust Fund as required by the Petroleum Industry Act (PIA).

The resolution followed the adoption of a motion sponsored by Hon. Hart Cyril Godwin, who drew the attention of the House to what he described as “blatant disregard” for the law by several oil companies operating in Nigeria’s producing regions.

Godwin, while moving the motion at plenary session presided over by Speaker Abass Tajudeen on Wednesday, noted that the PIA made it compulsory for every licensee or lessee whose operations impact a community to incorporate a Host Communities Development Trust Fund and contribute three per cent of their previous year’s actual operating expenditure to support development projects in the host areas.

He lamented that despite the clear provisions of Sections 235, 236, and 240 of the Act, many oil firms have failed to incorporate the Trust or release the required funds, thereby undermining the spirit of the legislation.

“The deliberate refusal of some companies to comply with these provisions has stifled growth and intensified the sense of neglect among host communities,” he said.

The lawmaker expressed concern that the relevant regulatory agencies, particularly the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), had not taken decisive action to enforce compliance.

He reminded the House that Section 297 of the PIA prescribes daily administrative penalties for non-compliance, while Section 238 empowers the government to revoke licences for continued breach of the law.

The House thereby mandated its Committee on Host Communities to investigate both the defaulting oil companies and the regulatory agencies accused of failing to enforce the Act.

The committee, tasked with submitting its report within four weeks, is expected to assess the level of compliance, identify any lapses in enforcement, and recommend suitable sanctions and legislative measures to ensure full implementation.

Lawmakers across party lines backed the motion, describing it as a necessary step to ensure that host communities receive their fair share of benefits from oil and gas operations. They warned that the continued non-remittance of the 3 per cent fund could erode trust between operators and their host communities, threatening peace and production stability in the Niger Delta and other producing areas.

In other news, the Nigerian Senate has dismissed reports suggesting plans to remove Senate President Godswill Akpabio, describing the claims as false and intended to create confusion.

Speaking on the floor of the Senate, the Senate Leader clarified that no discussions or moves toward Akpabio’s impeachment had taken place.

He explained that remarks attributed to Senator Orji Uzor Kalu were taken out of context, adding that his discussions with Kalu confirmed the alleged statement was misrepresented.

“From my discussions with Senator Kalu, it was obvious that the statement attributed to him was misrepresented,” he said.