Nigeria’s fragile oil revenues, already hit by underproduction may face a deeper crisis as the KEFFES Host Communities Development Trust (HCDT) representing eight Niger Delta oil-producing communities has given NNPC Exploration & Production Limited (NEPL) a seven-day ultimatum to address grievances or risk a total shutdown of operations at the OML 86 and 88 fields.

The dispute centres on NEPL’s alleged mishandling of community security vessel contracts, traditionally awarded as “community service contracts” but recently reassigned to external firms, Multiplan Nigeria Limited and EDEMX, without local input. Despite several meetings, community leaders say the new contractors have refused meaningful engagement.

Nigeria, producing just 1.4 million barrels per day (bpd) against a budgeted 2.06 million bpd, has already lost around 60.1 million barrels and $4.15 billion in revenue between January and April 2025. A further shutdown could deepen the fiscal blow.

KEFFES Chairman, Chief Tuduo Christopher, in a letter to NEPL’s management, warned that failure to act could escalate into unrest, citing Section 257(2) of the Petroleum Industry Act, 2021.

The communities also highlighted unpaid invoices since 2023, which have strained local contractors supporting over 650 beneficiaries.

The letter, copied to top officials including the Minister of State for Petroleum, the National Security Adviser, and the NUPRC Chief Executive, calls for urgent intervention: “We are exhausted by the back-and-forth. A stitch in time saves nine.”

NNPC spokesperson Femi Soneye had not responded to The Guardian’s request for comment at the time of filing this report.