Delta State, Nigeria — Oil-producing communities in Isoko land have issued a warning to oil operators, threatening to halt all oil-related activities in their region due to the continued non-release of development funds under the Petroleum Industry Act (PIA) 2021.
The communities claim that nearly two years after establishing the Host Community Development Trust (HCDT), they have yet to receive any disbursements. This has left residents frustrated and disappointed, especially given the region’s contributions to Nigeria’s oil wealth.
Affected Communities and Their Plight
The impacted areas include Uzere, Olomoro, Oleh, Irri, Ozoro, Igbide, and Owhe—all major oil-bearing communities in Isoko North and South Local Government Areas. Residents report that despite the revenue generated from oil wells in their backyard, their communities suffer from:
- Damaged and unmaintained roads that hinder transportation and local trade
- Poor health facilities, with hospitals and clinics lacking essential equipment and personnel
- Inadequate educational infrastructure, leaving students at a disadvantage
- Neglect in federal and state development interventions, despite statutory obligations under the PIA
Host Community Development Trust (HCDT) and PIA Mandates
Under the Petroleum Industry Act, oil companies are required to allocate 3% of their operating expenditure (OPEX) to the HCDT for host community development. Of this fund:
- 75% is for infrastructure projects
- 20% is for investments
- 5% is for administrative costs
Yet, community leaders say that not even the administrative fund has been released, let alone the larger portion meant for infrastructure and investment.
Calls for Government and Corporate Action
Community stakeholders singled out companies such as Nigerian National Petroleum Company Exploration & Production Limited (NEPL) and Sterling Global for the delay in fund release. They called on both the federal and Delta State governments to intervene immediately, warning that continued neglect could disrupt operations and cause economic loss.
“Unless something urgent is done, operations and activities of these companies may not be guaranteed,” said a spokesperson for the affected communities.
The Isoko youth and elders emphasized that the region is not asking for handouts but for what rightfully belongs to them: development in line with their contributions to the nation’s economy.
Looking Ahead
The communities stressed that if corrective action is not taken promptly, the next step could involve coordinated halts of oil operations, which would significantly affect oil production in the Niger Delta. They also pledged to maintain peaceful advocacy while ensuring their voices are heard.
“We want sustainable development, not empty promises,” a community leader added.
“Our land produces oil, and that wealth should translate to visible benefits for our people.”
Reporter: Isoko Nation News Team
Sources:
- Vanguard: Isoko communities threaten to halt oil exploration over non‑release of funds for development
- THISDAY: Unremitted Development Funds: Isoko Communities Threaten to Halt Oil Exploration
- Savinews Africa: Isoko Communities Threaten Oil Operations Over Unreleased Development Funds
- Leadership Nigeria: Delta Communities Threaten To Stop Oil Operations Over Neglect