Reps Move To Amend PIA, Seek Increase Of HOSTCOM Fund To 6%

The House of Representatives Committee on Host Communities (HOSTCOM) has announced plans to initiate an amendment to the Petroleum Industry Act (PIA) 2021 aimed at increasing the statutory allocation to oil-bearing communities from three per cent to six per cent of oil companies’ annual operating expenditure.

The proposal was unveiled on Wednesday at the end of a joint retreat involving the House Committee on HOSTCOM, the House Committee on Public Petitions, and HOSTCOM Trustees from the Niger Delta, held in Owerri, Imo State.

Chairman of the House Committee on HOSTCOM, Hon. Dekor Dumnamene Robinson, who is expected to spearhead the amendment process, said the current three per cent allocation has proven inadequate in addressing the mounting developmental and environmental challenges confronting host communities in the Niger Delta.

According to him, although the provision was welcomed when the PIA was enacted in 2021, experience over the last five years has shown that the funds are insufficient to meet critical needs in oil-producing areas.

“Three per cent was a good start in 2021, but five years of implementation have shown clearly that it is insufficient to meet the critical development needs of our communities, including schools, healthcare, roads, potable water, youth employment, skills acquisition, and environmental remediation,” Robinson said.

He explained that the amendment would follow the constitutional legislative procedure in the House of Representatives and would enjoy the backing of HOSTCOM Trustees across the Niger Delta.

The retreat resolved that the amendment should be formally drafted, presented, and pursued through the National Assembly with active collaboration from host community leaders.

Participants also urged key stakeholders in the oil and gas sector, including the Federal Ministry of Petroleum Resources, the Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and the Federation Account Allocation Committee, to support the proposed amendment in the interest of peace, stability, and sustainable development in the Niger Delta.

In his keynote address, Professor S. C. Dike, a Professor of Energy and Comparative Environmental Law, described the proposed amendment as one of the most important legislative efforts concerning the Niger Delta since the passage of the PIA.

He noted that Section 240 of the Act fixed host community benefits at three per cent of operating expenditure, a figure that was initially celebrated but has since become inadequate due to increasing socio-economic demands in oil-producing communities.

“In 2021, that was considered a victory. In 2026, it is no longer enough. Increasing the provision from 3% to 6% is the immediate legislative solution. It is fair, achievable, and consistent with the spirit and objectives of the Petroleum Industry Act,” he stated.

The retreat also recommended reforms to strengthen the HOSTCOM framework by ensuring broader inclusion of women, youths, and other stakeholders in the governance structure of host community development trusts.

According to the communiqué issued after the meeting, copies of the resolutions would be forwarded to the Speaker of the House of Representatives, the President of the Senate, President Bola Tinubu, and other relevant authorities.

Stakeholders at the retreat described the proposed amendment as a potentially landmark intervention in Niger Delta affairs since the enactment of the Petroleum Industry Act in 2021.

They further stressed that the immediate priority of host communities in the region remains the increase of the HOSTCOM allocation from three per cent to six per cent, rather than the decentralisation of Tantita security contracts.