Nearly five years after the Petroleum Industry Act (PIA) introduced the Host Community Development Trust (HCDT) framework to channel development funds to oil-producing communities, stakeholders say many host communities across the Niger Delta are yet to experience the full benefits of the scheme despite substantial financial contributions from oil companies.
The concern formed the centrepiece of discussions at a one-day Town Hall Meeting on “Maximizing the Benefits of Host Community Development Trusts in Host Communities in the Niger Delta,” organised by Stakeholder Democracy Network (SDN) in Port Harcourt.
Chairman of the House of Representatives Committee on Host Communities, Hon. Dumnamene Dekor, disclosed that about 140 Host Community Development Trusts have received funding either fully or partly under the PIA, but lamented that the expected impact remains largely absent in many communities.
“About 140 Trusts have been funded, either fully or partly, but are we having that impact in these communities? The answer is no,” Dekor said.
According to the lawmaker, internal leadership disputes, disagreements among stakeholders, prolonged court cases and delays in project implementation have prevented many trusts from translating available funds into visible development projects.
He noted that while oil companies have continued to make statutory contributions to the trusts, some communities have failed to utilise the funds effectively, leaving resources idle instead of addressing critical development needs.
Dekor warned that the House Committee would begin stricter oversight of the trusts from July 2026 and compel administrators to account for the management of funds and the progress of projects in their respective communities.
Also speaking at the meeting, SDN Country Director, Mrs. Florence Ibok-Abasi, said although some trusts have recorded significant successes through infrastructure projects, scholarships and livelihood programmes, governance and accountability challenges continue to undermine the effectiveness of the initiative in several communities.
She stressed that stronger monitoring mechanisms are needed to improve transparency and ensure that the objectives of the Petroleum Industry Act translate into measurable improvements in the lives of people living in oil-producing areas.
To address the challenge, SDN unveiled an Independent Host Community Development Trust Monitoring, Evaluation, Accountability, Reporting and Learning Platform designed to provide real-time information on HCDT implementation and support evidence-based oversight across the Niger Delta.
Stakeholders at the meeting agreed that unless issues of governance, accountability, community participation and institutional capacity are addressed, the promise of the PIA’s three per cent Host Community Fund may remain unrealised for many of the communities it was created to serve.
(The Whistler)