Leaders of Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) and members of the House of Representatives have begun moves to amend the Petroleum Industry Act (PIA), seeking an increase in the allocation to oil-producing communities from three percent to six percent.
The proposal was discussed during a stakeholders’ engagement involving lawmakers, community representatives and industry players, where participants argued that the current allocation under the PIA is inadequate to address the environmental and economic challenges faced by host communities.
HOSTCOM leaders said oil-bearing communities continue to suffer from pollution, underdevelopment and the impact of decades of oil exploration, despite contributing significantly to Nigeria’s economy.
According to them, increasing the Host Community Development Trust Fund to six percent would help improve infrastructure, healthcare, education and youth empowerment in affected areas.
“We believe the current three percent allocation does not reflect the realities and sacrifices of host communities,” a HOSTCOM representative said during the meeting.
Lawmakers supporting the amendment also argued that a higher allocation could reduce unrest, pipeline vandalism and conflicts in oil-producing regions by giving communities greater economic benefits from natural resources extracted from their land.
Some members of the House of Representatives reportedly pledged to sponsor amendments aimed at reviewing relevant sections of the Petroleum Industry Act.
The Petroleum Industry Act, signed into law in 2021, introduced reforms in Nigeria’s oil and gas sector, including the establishment of a trust fund for host communities financed by oil companies.
However, community leaders have repeatedly criticised the three percent provision, insisting it falls short of expectations and earlier demands made during consultations before the law was passed.
Industry analysts said any amendment to the PIA could trigger fresh debate among government agencies, oil firms and stakeholders over revenue sharing and investment implications.
Oil companies operating in the Niger Delta have yet to formally respond to the proposed increase.
Observers noted that the push for amendment reflects ongoing tensions surrounding resource control, environmental justice and development in Nigeria’s oil-producing communities.
The lawmakers said consultations would continue as efforts progress toward possible legislative review of the Act.
