Tension In Delta Oil Communities As Host Groups Threaten Showdown Over ₦2.4bn PIA Shortfall
Frustration is boiling over in Nigeria’s oil-producing communities, where expectations of development are increasingly clashing with claims of neglect and financial opacity.
Aggrieved host communities in Delta State under OML 26 have threatened a major showdown with operators, accusing the Asset Management Team led by Sterling Global Oil Exploration and Energy Company, alongside the NNPC Exploration and Production Limited (NEPL), of failing to comply with the provisions of the Petroleum Industry Act (PIA).
Speaking through the Isoko Grassroots Mobilisers, the communities said they could no longer tolerate delays in remitting funds meant for local development under the Host Community Development Trust (HCDT).
Under Chapter 3 of the PIA, oil operators are required to set aside three per cent of their annual operating expenditure (OPEX) for host communities.
However, the group alleges that only a “paltry” amount was remitted in October 2025, nearly two years after the trust was inaugurated, and that the payment fell short by about ₦2.4 billion.
Despite raising the alarm in November 2025, the Board of Trustees (BOT) of the HCDT reportedly received no concrete response from the company.
A follow-up meeting in December ended without resolution, prompting a petition to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
At a tripartite meeting held in Abuja on April 15, 2026, the operator allegedly claimed the shortfall had been spent on “Special Intervention Projects” a justification the communities reject as inconsistent with both the PIA and earlier agreements.
The NUPRC has since directed NEPL to provide detailed documentation within two weeks, but the communities say patience has run out.
They argue that OML 26 remains severely underdeveloped, with no visible projects since the inauguration of the HCDT in February 2024.
Basic amenities such as electricity remain absent, despite funds earmarked for such improvements.
The group also raised concerns over what it described as an “unknown” adjustment of OPEX figures between 2023 and 2025, accusing the operators of manipulating financial obligations to the detriment of host communities.
While acknowledging the risks of disrupting oil operations, the Isoko Grassroots Mobilisers warned they are prepared to take decisive action if the outstanding funds are not paid.
They called on regulatory authorities to compel the operators to remit the full amount owed, warning that failure to act could lead to a shutdown of operations in OML 26.
“OIL exploration should bring development, not deepen hardship,” the group said, declaring: “Enough is enough.”
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