NEITI: Transparency Key to Successful Management of Host Oil Community FundsEmmanuel Addeh in Abuja

The Nigeria Extractive Industries Transparency Initiative (NEITI) has advocated utmost openness in the administration of the Host Communities Development Trust Fund (HCDT) to ensure the beneficiaries are not short-changed.

Speaking at the launch of a policy brief titled: “Giving Host Communities Their Due: Revisiting the 3% OPEX Funding Framework for HCDTs in Nigeria”, developed by Spaces for Change, Orji explained that non-state actors like civil society groups have a stake in making sure that the fund is spent transparently.

Orji stated that what happened in the Niger Delta in the past was that over a long period, institutions and agencies were created, but with very little impact on the lives of the host communities.

The host communities fund, which was established under the Petroleum Industry Act (PIA) of 2021, is designed to enhance the welfare of host communities, ensure sustainable development, and promote peaceful coexistence between industry operators and their host environments.

NEITI’s mandate to ensure openness in revenue flows and financial transactions, Orji said, is pivotal in tracking funds allocated to host communities, especially by auditing and publishing detailed reports on payments made by oil and gas companies.

“NEITI actively engages stakeholders, including host communities, oil companies, and government entities. This engagement fosters dialogue and builds trust, ensuring that community needs are accurately identified and addressed through the trust fund.

“Through its reports and recommendations, NEITI influences policy reforms that enhance the effective implementation of the trust fund. By highlighting gaps and suggesting improvements, NEITI ensures that the legislative framework governing the fund is robust and effective,” the executive secretary added.

Orji stated that non-state actors are instrumental in educating host communities about their rights and entitlements under the PIA, noting that by raising awareness, they empower communities to actively participate in the governance and decision-making processes of the trust fund.

Besides, he stated that civil society organisations serve as watchdogs, monitoring the implementation of the fund to prevent mismanagement and corruption, explaining that their advocacy efforts hold stakeholders accountable, ensuring that funds are used for community development projects as intended.

“Non-state actors play a crucial role in maintaining peace and harmony between host communities and industry operators. By mediating disputes and fostering dialogue, they help mitigate conflicts that could disrupt industry operations and community relations,” he said.

He pointed out that the policy brief provides a powerful tool to facilitate the implementation of the fund as it  highlights the historical marginalisation of host communities, aligns with the provisions of the PIA and takes community development as essential for the sustainability of the oil and gas sector.

By addressing the root causes of resource-based conflicts, the policy brief, Orji said, advocates for transparent and accountable fund management, which is critical for maintaining peace in the Niger Delta and other host communities.

In his remarks, the Chairman House Committee on Host Communities, Hon. Dumnamene Dekor, represented by Hon. Clement Jomno; Deputy Chairman, National Planning and Economic Development, said there was a need to bridge the gaps that currently exist in the programme.

“Who determines the 3 per cent? Is it just at the whims and caprices of the International Oil Companies ( IOCs)? Because it seems that the host communities, to some greater extent, do not have the expertise, the knowledge, to break into what should be the actual 3 per cent,” he stressed.

In her remarks, Executive Director, Spaces for Change, Victoria Ibezim-Ohaeri, said the meeting was to acknowledge the positives that had been recorded over the years and also acknowledge the gaps that remain.

“Those gaps that remain, we are committed to ensuring that they are closed completely so that some of the best practices coming out from Nigeria we will continue to export them to other jurisdictions,” she noted.