Unremitted Development Funds: Isoko Communities Threaten to Halt Oil Exploration

Ndubuisi Francis in Abuja

Piqued by the deplorable state of their various communities following decades of neglect by oil companies operating in their land, stakeholders in Isoko, Delta State, are threatening to shut down the operations of the companies in their domain.

According to them, their disappointment particularly stems from the fact that nearly two years after the inauguration of AIO Host Community Development Trust (AIO HCDT) as mandated by the Petroleum Industry Act (PIA), 2021 nothing has happened.

By the Act, oil companies are expected to channel three per cent of their Operating Expenditure (OPEX) to the HCDTs for the development of the host communities.

Conveying the grievances of the stakeholders via a statement issued on Sunday on behalf of Isoko Grassroot Mobilisers, Erere Okpako and Angela Akpofa explained that of these funds, 75 per cent is earmarked for infrastructure development while 20 per cent and five per cent are for investment and administrative purposes, respectively.

“But as we write this, even the five per cent that is to enable a proper take off has not been released let alone those for infrastructure and reserve.

“The various communities are visibly disturbed thus calling for a review of any relationship that exists between them and the oil companies, particularly the Nigerian National Petroleum Company Exploration and Productions Limited (NEPL), operators of Oil Mining Lease (OML 26) and the new players, Sterling Global. Unless something urgent is done, operations and activities of these companies may not be guaranteed,” Isoko Grassroot Mobilisers said.

According to the group, “the AIO HCDT has been working without tools, not even office accommodation.

“Indeed, so many meetings have been held with the NEPL in Warri and Ozoro with the hope of resolving all grey areas but back and forth have been the ordeal of the HCDT and now the communities say enough is enough.”

The group noted that with the situation, some leaders in the community are wondering if PIA is a curse or a blessing.

Before the advent of the PIA and the inauguration of the HCDTs, administration of community activities was carried out under the Global Memorandum of Understanding (GMoU) as a doctrine of necessity, with the expectation that a more structured PIA would make for easier and better administration.

The group lamented that the situation has not been any way better.

It stressed that earlier in October 2025, NEPL communicated to the AIO Board of Trustees (BOT) Chairman the approval of the five per cent administrative budget, adding that to date, the bank account has not been funded, thus creating more complications to operationalising the HCDT activities.

 However, while the agitated communities, including the Isoko Youth Assembly spoil for a show down with the oil companies, the BOT of the AIO HCDT is torn between two difficult sides of the divide.

Insiders at the NEPL, however, admitted that things are really slow but sued for the understanding of the communities.

The Isoko stakeholders urged the companies not to overreach their luck as “we can no longer allow them to take us for granted. We implore the operators to expedite actions to forestall any possible consequences that may result from a shutdown.”

They also sued for government intervention to save the situation and avoid economic losses to all.