Reps Push to Amend PIA, Raise Host Communities’ Share to 10%

The House of Representatives Committee on Petroleum Resources (Upstream) says it is set to amend the Petroleum Industry Act (PIA) to increase oil companies’ contributions to Host Community Development Trusts (HCDTs) from 3% to 10%.

Deputy Chairman of the Committee, Hon. Sesi Oluwaseun Whingan, disclosed this during a stakeholder session in Port Harcourt, noting that the current 3% is inadequate to tackle the environmental degradation, poverty, and underdevelopment faced by host communities in the Niger Delta.

Whingan revealed that a bill to amend Section 240 of the PIA has passed first reading and will proceed to second reading when the House resumes. He stressed that the increase is part of a broader push for justice and equitable resource distribution.

He also called for stronger HCDT governance, environmental remediation, and greater transparency to empower host communities.

Meanwhile, Ms. Florence Ibok-Abasi, Country Director of Stakeholder Democracy Network, emphasized the need for active but non-intrusive government involvement to ensure the success of the HCDTs while preserving their independence.