The Senate has threatened stiff sanctions, including the withdrawal of operating licences, against International Oil Companies (IOCs) that fail to comply with provisions of the Petroleum Industry Act (PIA) on the establishment and effective implementation of Host Communities Development Trusts (HCDTs).
Chairman of the Senate Committee on Host Communities, Senator Benson Agadaga, issued the warning during an interactive session between the committee and the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), declaring that the era of regulatory complacency was over.
Agadaga insisted that the Senate would no longer tolerate deliberate violations of the law by oil firms, stressing that the PIA clearly spells out penalties for non-compliance and empowers the regulator to act decisively.
In a statement issued by his Media Office yesterday in Abuja, the Bayelsa East lawmaker acknowledged that the introduction of the HCDT framework under the PIA had contributed to relative peace and reduced hostility in parts of the Niger Delta.
However, he warned that the gains remained fragile due to persistent disregard of the law by several operators.
Speaking emotionally, Agadaga lamented the long-standing neglect and devastation suffered by oil-producing communities despite decades of oil exploration and massive revenues generated for the country.
He said: “I come from Oloibiri, where oil was first discovered in Nigeria. Shell has left that place completely devastated. There is nothing to show for their operations.
“The people are worse off today than before oil was discovered.
According to him, the PIA was enacted to address such historical injustices and correct the imbalance between oil wealth and the impoverishment of host communities, but weak implementation has continued to frustrate its objectives.
While noting that a few companies have shown commitment to the law, Agadaga said many others have failed woefully to meet their obligations.
He said, “A lot of them are not doing what the law says. NUPRC, as the regulator, must make them sit up.
“Where they fail, there are clear sanctions, including withdrawal of operating licences,” he warned.
He disclosed that his committee had already published the names of oil companies found to be in breach of the PIA, adding that existing regulations provide ample authority for the regulator to sanction erring firms.
“NUPRC should not fail in its responsibility. If they do, we will oversee them and make them sit up,” Agadaga said, underscoring the Senate’s resolve to enforce accountability.
The lawmaker linked the neglect of host communities to broader national instability, recalling the economic and social pressures that followed the removal of fuel subsidy.
He argued that Nigeria’s economic survival is built on resources extracted from lands that have been severely degraded, while the people who bear the environmental burden are left in poverty.
“The wealth solving Nigeria’s problems is coming from lands God has given to these communities, yet they are the ones suffering. This injustice must end,” he said.
The session took place amid a leadership transition at the NUPRC following the resignation of its chief executive, a development Agadaga described as an opportunity to reset the commission’s priorities.
He demanded full disclosure on the implementation of the PIA, including details of funds paid to host communities, the identities of beneficiaries and fund managers, and evidence of proper utilisation of the resources.
“How much has been paid out? Who are the beneficiaries? Who are the fund managers? This is public money, and we must oversee it,” he insisted.
Other members of the Senate Committee on Host Communities accompanied Agadaga to the session, signalling a united legislative front determined to ensure that oil-producing communities finally enjoy the justice and development promised under the Petroleum Industry Act.
