PIA: Court Declares NBC Sole Authority On Coastal Community Delineation

Justice Hyeladzira Nganjiwa of the Federal High Court has declared that only the National Boundary Commission (NBC) holds the legal authority to define and delineate coastal host communities for the implementation of the Petroleum Industry Act (PIA).

Justice Nganjiwa also ordered the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to adhere to existing legal provisions promptly.

The judge further declared that the NUPRC lacks the statutory power to delay the implementation of the Host Communities Development Trust (HCDT) provisions under Chapter 3 of the PIA, even whilst reviews of recognised communities are ongoing.

The court also restrained the NUPRC from withholding benefits to recognised communities because some communities were allegedly omitted from the Federal Government Gazette.

The suit was filed by Chief Joseph O. Wuruyai, Chief Matthew Pudie, Babajide Ololade Olokodana, Oladipupo Kehinde Jimoh, Chief Ayodele J. Busiga, Mathew Adebogun Badejo, Esubiyi Ifasanya Shuaibu, and Prefa Tariere Tokoni against the NBC, NUPRC, and representatives of coastal communities in Delta and Ondo states.

During the hearing, lawyers Andrew Onodjefemue and Augustine Akpojaro represented the plaintiffs, while V.N. Ifeanyi represented the NUPRC.

Prince Clem Omotoye appeared for the third to seventh defendants and also took the brief of Ahmed Raji (SAN).

The plaintiffs had asked the court to interpret Sections 7(c) and (f) of the National Boundary Commission (Establishment) Act, 2006, and Regulation 6(2)(a) of the Nigerian Upstream Petroleum Host Communities Development Regulations, 2022.

They sought clarity on whether the NBC Gazette, which identifies host communities within 500 metres of the coastlines of Lagos, Ogun, Ondo, Delta, and Akwa Ibom, is binding on the NUPRC for the implementation of the Host Communities Development Trust Fund.

They also challenged the NUPRC’s authority to review or redefine communities that the NBC had already gazetted.

Justice Nganjiwa, in his judgment, held that the legal provisions clearly assign to the NBC the responsibility for delineating host communities, including littoral communities, as part of the implementation of Chapter 3 of the PIA in Nigeria.

“From the foregoing, I am convinced and of the opinion that it is the 1st Defendant (NBC) that is statutorily empowered to undertake the determination and delineation or delimitation of host communities, which includes littoral communities, for implementation of provisions of Chapter 3 of the PIA in Nigeria, and I so hold,” the judge ruled. “The 2nd Defendant (NUPRC) has no such powers under the relevant statutory provisions.”

The court noted that although the NUPRC acknowledged the NBC’s valid issuance and gazetting of regulations covering coastal buffer zone communities, it claimed that some communities in Bayelsa, Rivers, and parts of Delta State were omitted.

Petitions and protests from affected communities led to the formation of a verification committee with the NBC to review these omissions. However, the court held that the existing Gazette remains valid and binding until lawfully amended or annulled.

Justice Nganjiwa stated that the absence of communities cannot justify denying benefits to recognised communities under the Host Communities Development Trust Fund. He advised that communities omitted from the Gazette should pursue redress through the NBC rather than delay the implementation of the law.

The court reaffirmed that the Gazette enjoys a presumption of validity under Section 168(1) of the Evidence Act, 2011, supported by judicial authority that official government actions are presumed valid unless proven otherwise.

He also noted that the NBC had completed its delineation, submitted a report to the federal government, and published it in the Federal Republic of Nigeria Official Gazette No. 48, Vol. 111, on 18 March 2024.

The judge criticised attempts to reopen the process after publication of the Gazette, de,eming them belated.

Furthermore, the court observed that the NBC admitted some communities in Delta State were omitted due to the absence of community leaders and inadequate stakeholder participation. It urged the commission to improve the inclusion of omitted communities in future publications.

Having resolved all issues in favour of the plaintiffs, the court granted the requested remedies. It issued a mandatory injunction requiring the defendants to implement Chapter 3 of the Nigerian Upstream Petroleum Host Communities Development Regulations, 2022, as published in the Gazette.

No costs were awarded.