The House of Representatives Committee on Host Communities has reiterated its commitment to ensuring that oil-producing communities across Nigeria derive the full benefits of petroleum operations, in accordance with the provisions of the Petroleum Industry Act (PIA).
 
The chairman of the committee told The Guardian that the panel was created as a deliberate legislative intervention to address decades of neglect, environmental degradation and socio-economic deprivation suffered by communities in oil-producing areas of the country.
 
He traced the establishment of the committee to the ninth National Assembly, noting that it was born out of concern by the leadership of the House over the harsh realities in host communities.
 
According to him, the then Speaker of the House, now the Chief of Staff to the President, Femi Gbajabiamila, recognised the “abject poverty, suffering, deaths and diseases” that had become endemic in oil-producing areas and, therefore, instituted a standing committee to focus specifically on their challenges.”
 
The lawmaker explained that the committee was retained in the 10th Assembly by the Speaker of the House, Dr Tajudeen Abbas, in acknowledgement of its growing relevance and the critical role it plays in stabilising relations between host communities and oil companies.
 
“Principally, the committee was put in place to address the injustices and denials suffered by oil-producing communities over the years,” he said. He noted that the committee’s mandate is wide-ranging, covering the oversight of all funds accruing to oil host communities. These include the 13 per cent derivation fund, the Host Communities Development Trusts (HCDTs) established under the PIA, as well as environmental remediation programmes such as the Hydrocarbon Pollution Remediation Project (HYPREP).
 
According to him, the committee is responsible for protecting the rights and welfare of oil mineral-producing communities, monitoring the implementation of agreements between host communities and oil companies, overseeing the utilisation of derivation funds, promoting youth development, and handling petitions and complaints from aggrieved communities.
 
On the implementation of the PIA, the chairman described the shift from voluntary Memoranda of Understanding (MoUs) and global MOUs to a legally enforceable framework as a major milestone. He said the requirement for oil companies to remit three per cent of their operating expenditure (OPEX) from the preceding year to host communities represents a significant departure from past practices and has become “a game changer” for development in oil-producing areas.

He explained that the funds are managed through clearly defined structures, including Boards of Trustees and Host Communities Development Trusts, with projects identified through community-based needs assessments. Regulatory oversight is provided by agencies such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), complemented by parliamentary supervision.
 
While acknowledging that disputes have arisen in some communities over the leadership and composition of the trusts, many of which are already before the courts, the chairman stated that the committee is engaging with all stakeholders to ensure that the structures are properly constituted and that communities are not disadvantaged.
 
He cited the Obagi Host Community Development Trust in Rivers State, where TotalEnergies operates, as a model of what the PIA can achieve when faithfully implemented. Projects executed under the trust, he said, include health centres, schools, ICT facilities, roads and income-generating ventures such as a water bottling company, all of which have had a visible impact on local livelihoods.