Host communities in Akwa Ibom, Bayelsa, Delta, and Ondo states have given Conoil Producing Limited until October 31, 2025, to comply with provisions of the Petroleum Industry Act (PIA) or face disruption of its operations.
At the weekend, community leaders accused the oil company of failing to implement key aspects of the Act, particularly the mandatory contribution of 3% of its annual operating expenditure (OPEX) to the Host Community Development Trust (HCDT).
The PIA, enacted in 2021, stipulates that oil and gas companies must channel 3% of their OPEX into the HCDT to fund projects in host communities. The law prescribes 75% of funds for capital projects, 20% for reserves, and 5% for administrative expenses.
The affected communities alleged that three years after the law took effect, Conoil has yet to establish or fund the HCDT, leaving them without the development and compensation guaranteed by law.
Sources disclosed that HCDT chairmen from the affected states met officials of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja over the weekend to press their grievances. However, the matter remains unresolved.
Aggrieved youths in the oil-producing areas have warned that they will shut down Conoil’s operations if the company fails to meet its obligations before the October deadline.
