The Nigeria Extractive Industries Transparency Initiative (NEITI) has called on oil companies operating in Nigeria to prioritise the development of their host communities.
Speaking in Abuja at the launch of a policy brief on the three per cent Operating Expenses (OPEX) for Host Communities, NEITI’s Executive Secretary, Dr Orji Ogbonnaya Orji, stressed the need for oil firms to fulfil their obligations to the communities where they operate.
Host Communities Deserve More
The policy brief, titled “Giving Host Communities Their Due: Revisiting the Three Per Cent OPEX Funding Framework for Host Community Development Trusts in Nigeria,” was unveiled at an event organised by Spaces for Change, a civil society group. The event brought together stakeholders from the oil industry, host community representatives, and government officials.
Dr Orji highlighted that the Host Communities Trust Fund, established under the Petroleum Industry Act (PIA) 2021, was designed to improve the welfare of host communities, promote sustainable development, and ensure peaceful coexistence between oil firms and locals.
“The success of this initiative requires the combined effort of government agencies, NEITI, community leaders, the media, and civil society groups,” he said.
NEITI’s Role in Ensuring Transparency
As Nigeria’s representative of the global Extractive Industries Transparency Initiative (EITI), NEITI plays a key role in monitoring and ensuring transparency in the oil and gas sector.
Dr Orji stated that NEITI is responsible for tracking the flow of funds meant for host communities and ensuring they are used for development projects rather than diverted for other purposes.
Communities Must Take Ownership
While urging oil companies to do their part, NEITI also called on host communities to take responsibility for maintaining projects in their areas.
“Communities must see these projects as their own and ensure they are properly maintained,” Dr Orji emphasised.
Lawmakers Push for Accountability
Dr Dekor Robinson, Chairman of the House of Representatives Committee on Host Communities, also weighed in on the matter. Speaking through committee member Clement Jimbo, he assured Nigerians that the National Assembly would continue monitoring how the three per cent fund is spent.
“This money is not small. Host communities must take full control and ensure it is used to improve their living conditions,” he stated.
Civil Society Calls for Better Engagement
Mrs Victoria Ibezim-Ohaeri, Executive Director of Spaces for Change, urged oil companies to see host communities as partners rather than beneficiaries. She noted that while the initiative has made some progress, there are still gaps in implementation that need urgent attention.
“Our goal is to ensure that the communities truly benefit from these funds,” she said.
The Way Forward
The message from NEITI and other stakeholders is clear: oil companies must take their corporate social responsibility seriously, host communities must ensure proper utilisation of funds, and the government must enforce accountability.
With better cooperation, Nigeria’s oil-producing communities can finally see meaningful development from the resources extracted from their land.
