PIA funding boosts development in Bayelsa oil-bearing communities

Nigerian National Petroleum Company Limited (NNPCL)

The 11 oil-bearing communities under the KEFFESO Host Community Development Trust (HCDT) in Bayelsa State is said to have witnessed increased execution of development projects following improved funding under the Petroleum Industry Act (PIA).
Stakeholders said the implementation of the PIA backed funding framework has accelerated projects in infrastructure, education, healthcare, water supply, youth empowerment and human capital development, while helping to address longstanding grievances over neglect in the oil-producing communities.

The communities, located in Brass and Southern Ijaw Local Government Areas, are beneficiaries of the Host Community Development Trust established by First Exploration & Petroleum Development Company Ltd (First E&P), operator of the Anyala (OML 83) and Madu (OML 85) oilfields in a joint venture with the Nigerian National Petroleum Company (NNPC) Ltd.

The KEFFESO cluster comprises Koluama 1, Koluama 2, Ezetu 1, Ezetu 2, Foropa, Fish Town, Ekeni, Sangana, Opu-Okumbiri, Okumbiribeleu and Oginibiri communities.

Chairman of the KEFFESO HCDT Board of Trustees, King Moses Theophilus, described the ongoing transformation as “a revolution” for many residents, noting that the Trust had significantly changed the development landscape across the communities.

According to him, projects currently being implemented are improving access to education, healthcare, welfare services, infrastructure and economic opportunities.

“The impact has been enormous. What many people are witnessing today is a complete departure from what these communities experienced in the past,” he said.

He noted that before the establishment of the Trust, the communities faced severe environmental challenges, including coastal erosion, sea encroachment and perennial flooding, which frequently destroyed homes, livelihoods and public infrastructure.

The communities also suffered limited access to potable water, while unemployment and inadequate skills development opportunities fuelled frustration among young people.

Theophilus said the establishment of the KEFFESO HCDT, supported by First E&P and its joint venture partner, NNPC Ltd, introduced a more structured, transparent and community-driven approach to development.

Under the PIA, oil companies are required to contribute three per cent of their annual operating expenditure to host community development trusts to fund projects identified by the communities.

KEFFESO is among the 155 Host Community Development Trusts incorporated nationwide under the PIA.

Officials of the Trust said the new funding model provides substantially greater resources than the previous Global Memorandum of Understanding (GMoU) arrangement, enabling the execution of larger and more sustainable development projects.

A Trust official explained that each HCDT is required to prepare a five-year Community Development Plan in consultation with host communities to ensure continuity and strategic implementation of projects.

An official overseeing the education programme said qualified teachers from the host communities had been recruited and deployed to schools to address acute manpower shortages, while government-employed teachers receive monthly incentives to improve retention and attendance.

Some school administrators said the intervention had improved learning outcomes, with pupils now benefiting from increased teacher availability.

Healthcare delivery has also improved through annual medical outreach programmes organised by the Trust in collaboration with First E&P and NNPC Ltd, bringing essential medical services closer to residents who previously travelled long distances, often by water, to access healthcare.

The Trust is constructing concrete walkways in several communities while completing legacy road projects initiated under the former GMoU framework.

A document made available to newsmen in Port HarCourt on Wednesday,noted that the projects are improving mobility, enhancing safety and supporting local economic activities.

Access to potable water is also being expanded through new water supply schemes designed to reduce dependence on hand-dug wells often contaminated by saltwater and floodwater.

According to the document, the interventions are aimed at building resilient communities by improving education, healthcare, infrastructure and economic opportunities, while ensuring that development priorities are determined and managed by the host communities themselves.

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