Isoko Communities Threaten Oil Operations Over Unreleased Development Funds
Tension is brewing in Isoko land, Delta State, as oil-producing communities have threatened to halt oil exploration activities over the non-release of funds meant for their development.
Stakeholders under the banner of Isoko Grassroot Mobilisers expressed frustration that nearly two years after the inauguration of the AIO Host Community Development Trust (AIO HCDT), in line with the Petroleum Industry Act (PIA) 2021, no funds have been disbursed to the communities.
By the PIA, oil companies are mandated to allocate three per cent of their Operating Expenditure (OPEX) to Host Community Development Trusts, with 75% of the funds for infrastructure, 20% for investment, and 5% for administrative purposes.
However, the communities allege that not even the initial five per cent administrative fund has been released.
The delay, they said, has left the AIO HCDT without basic operational facilities, including an office.
Despite several meetings between the Trust and the Nigerian National Petroleum Company Exploration and Production Limited (NEPL) operators of OML 26, and new partners, Sterling Global, no tangible progress has been made.
A visibly agitated community leader lamented, “We wonder if the PIA is a curse or a blessing.”
The Isoko Youth Assembly has also joined the growing agitation, warning that if the situation persists, oil operations in the area might be shut down.
Meanwhile, insiders at NEPL reportedly acknowledged the delays but appealed for patience, assuring that efforts are ongoing to resolve the bottlenecks.
The stakeholders, however, insist that government intervention is urgently needed to prevent escalation and avert economic losses.
Follow the Savinews Africa channel on WhatsApp: [https://whatsapp.com/channel/0029VawgaEL5vKA9Y5XTFg0n]
