As part of strategies to increase Nigeria’s crude oil production, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, on Thursday in Yenagoa joined the Nigerian Content Development and Monitoring Board (NCDMB), and other key entities of the oil industry to chart a pathway to sustainable growth and prosperity in oil and gas host communities and peaceful operations of oil and gas companies.
The minister and key players of the industry participated in the one-day seminar organised by First E&P, a leading indigenous exploration and production company and KEFFESO Host Community Development Trust (KHCDT), with support from the NCDMB.
The event was held at the Nigerian Content Tower, Yenagoa, and was attended by Host Community Development Trusts (HCDTs) from several parts of the country. The forum provided a platform to share experiences, identify and deliberate on common challenges and appropriate solutions that would lead to increased crude oil production and sustainable development in the communities as envisaged under the PIA.
There were break-out sessions, plenary, and panel discussions with representatives of the NCDMB, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), international oil companies, Green Energy, and KEFFESO Host Community Development Trust (KHCDT), and other experts.
In a keynote address, Senator Lokpobiri recalled successive stages in legislative work at the National Assembly to produce the Petroleum Industry Act (PIA), and how its eventual enactment in 2021 has brought remarkable development to host communities as well as stability to the oil and gas sector.
According to him three per cent of the annual operating expenditure of oil prospecting companies in the upstream subsector is allocated by the PIA to oil-producing areas through Host Communities Development Trusts (HCDTs) for their own development needs.
He disclosed that “close to N300 billion” has thus far been paid to about 140 HCDTs registered with the Corporate Affairs Commission (CAC). While noting that the three per cent allocation may not be enough to address the developmental needs of the communities, he said, “it is always good to start from somewhere.”
He commended the KEFFESO HCDT, comprising Koluama 1, Koluama 2, Ezetu 1, Ezetu 2, Foropa, Fish Town, Ekeni, Sangana Opu Okumbiri, Okumbiribeleu, and Oginibiri, for their spectacular achievements since the incorporation of the Trust in 2023.
The Minister was, however, unhappy with some other HCDTs embroiled in crises over management of their allocations that have resulted in time-consuming litigation. He advised such litigants to seek out alternative dispute resolution mechanisms for quick disposal of such cases, so their comunities could access and utilise their funds.
Senator Lokpobiri advised communities to reciprocate the gesture of government as symbolised by the PIA by ensuring adequate protection of oil and gas industry installations.
He said, “What you get is based on what the companies produce and sell to the market,” with the implication that vandalism of facilities and disruption of production would mean reduced or no allocation for a period.
“If you want to get more money then you have to work with operators, you have to work with relevant security agencies…and with other stakeholders to secure oil and gas productions,” he declared, citing the communities under KEFFESO as most exemplary. For their cooperative disposition towards operators, another oil company is moving into their area soon, according to the Minister. He argued that crude oil resources only becomes valuable when they had been produced, hence the need for host communities to support operating companies that had deployed technology and resources for the purpose of extracting the resources.
He also referenced the global clamour for energy transition and rise of renewable energy sources, emphasizing the need to increase crude oil production while it is still highly sought after.
In his own address, the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, represented by the Director, Legal Services, Naboth Onyesoh, Esq said the advent of the PIA, which has provided “succinct legislative provisions to comprehensively address the issue of how to integrate the interests of the host communities into the mainstream of the oil and gas industry,” has made a lot of improvement to such areas.
He assured that the NCDMB, for its part, remains “committed to leverage on the provisions of the NOGICD Act, 2010, as well as the Community Content Guideline to ensure sustainable community engagement and play the part vested in the Board to ensure that community content is recognized in the entire oil and gas value chain.”
In another address, the Managing Director/Chief Executive Officer of First E&P, Mr. Ademola Adeyemi-Bero, said the HCDTs provide “a mechanism through which community voices can be heard and embedded into decision-making processes, ensuring that interventions reflect real needs and drive meaningful change.”
He pointed out that “Actualising the paradigm shift envisioned by the PIA will require moving from a model of dependency to a model of shared responsibilities and partnership,” and that “it calls for an inclusive approach where host communities take ownership of their development priorities, ensuring that projects are well planned, they are impactful, and they are aligned with long-term aspirations.”
Earlier in a Welcome Address, the Board of Trustees Chairman of KEFFESO HCDT, His Royal Highness Theophilus Moses, commended the Minister of Petroleum Resources for personally attending the event, and the Ministry of Petroleum Resources and First E&P for making the stakeholder forum possible.
According to him, the event represented “a pivotal commitment” in the country’s journey towards addressing the present challenges faced by the marginalised communities in the Niger Delta. On behalf of the Trust, he expressed heartfelt gratitude to the indigenous oil company for its invaluable support in establishing the KEFFESO Community Development Trust, and for commitment to funding development of communities within the Trust.
Plenary 1 of the event focused on “Sustainable Community Development in Niger Delta Host Communities: Key Challenges and Practical Solutions,” while Plenary 2 dwelt on “Innovative Approaches to Economic Empowerment in Host Communities.”
There was also a presentation entitled “Envisioning Development in the Niger Delta: The Imperative of Mindset Re-Engineering” by Mrs. Bamidele Seun Owoola, Founder & CEO, Welcome2Africa International.
Another major highlight was an open discussion between the Hon. Minister of State and all stakeholders on collaborative approaches to addressing the most pressing development issues.
To round off the day’s activities was a Breakout Session which focused on “Leadership Performance in Community Development: Strategies for Fostering Leadership Effectiveness and Collaborations in Community Management and Project Execution.”