Nigeria House of Representatives Launch Probe into Oil Firms’ Failure to Fund Host Communities

The House of Representatives has ordered an investigation into oil and gas companies that have failed to remit the mandatory three per cent of their annual operating expenses to the Host Communities Development Trust Fund, as stipulated by the Petroleum Industry Act (PIA).

The decision followed a motion by Hon. Hart Cyril Godwin, who accused several firms of flouting the law and neglecting their obligations to oil-producing communities. He noted that many companies have neither established the required Trusts nor contributed to them, despite clear provisions in the PIA.

Lawmakers also faulted regulatory bodies, particularly the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), for not enforcing compliance. The House Committee on Host Communities was directed to investigate the defaulting firms and agencies and report back within four weeks.

In a related development, PDP lawmaker Amos Daniel from Kaduna State defected to the ruling All Progressives Congress (APC), citing consultations with local stakeholders and a desire to better serve his constituency.