Reps: PIA Amendment Underway to Increase Oil Companies’ HCDT Funds to 10%

Blessing Ibunge in Port Harcourt

The Deputy Chairman of the House Committee on Petroleum Resources (Upstream), Hon. Sesi Oluwaseun Whingan, said a bill seeking to amend the Petroleum Industry Act (PIA) to increase oil companies’ mandatory contributions to Host Community Development Trusts (HCDTs) from 3% to 10% has passed first reading in the House of Representatives.

Whingan made the announcement, yesterday in Port Harcourt, while delivering the keynote address at a high-level stakeholder dialogue on strengthening HCDTs for sustainable impact, organised by the Stakeholder Democracy Network (SDN) in collaboration with PIND and Search for Common Ground.

His words: “In its current form, the 3% contribution by settlors is grossly inadequate to address decades of environmental degradation, poverty, and underdevelopment suffered by host communities.

“That is why I am leading efforts to amend Section 240 of the PIA. The bill has passed its first reading and is scheduled for second reading upon the House’s resumption.”

The proposed amendment, he said, is part of a broader legislative initiative aimed at ensuring justice and equitable resource distribution to communities that have borne the brunt of oil exploration in the Niger Delta.

“Our duty as lawmakers is to ensure that the wealth from our natural resources translates into tangible prosperity for the host communities. They deserve more than token gestures. They deserve meaningful investment in their future.”

Whingan also revealed ongoing collaboration with civil society groups such as SDN on the development of other legislative frameworks, including the Responsible Extractive Industry Divestment Bill, to ensure transparency, accountability, and inclusive governance in Nigeria’s oil and gas sector.

Whingan, in his keynote, identified core challenges still facing host communities: environmental degradation from oil spills and gas flaring, poor infrastructure, high unemployment, and lack of transparency in HCDT operations.

“To fix this, we must strengthen HCDT governance, enhance environmental remediation, boost development funding, and empower host communities to drive the process,” he said.

He assured participants that his office remains open for continued dialogue and cooperation: “Together, through collective effort and inclusive policymaking, we can build a petroleum industry that is not only productive, but truly people-centered.”

Earlier in her welcome address, Country Director of SDN, Ms. Florence Ibok Abasi, stressed that while the establishment of HCDTs under the PIA was a bold and progressive step, its full potential could only be realised with active government engagement.

“We must acknowledge that unlocking the full potential of the HCDT framework requires the active involvement of government at all levels. The government’s role is not merely supportive — it is essential. But this involvement must not come with undue interference. The independence and community-driven essence of these Trusts must be preserved.”

She emphasised that today’s dialogue was designed to examine how the government could better support HCDTs through regulatory oversight, institutional backing, and alignment with broader development goals.

The session brought together government representatives, civil society leaders, community stakeholders, and oil company officials for robust discussions on reforming and enhancing the impact of HCDTs.