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The Nigeria Extractive Industries Transparency Initiative (NEITI) has urged oil companies operating in Nigeria to prioritise the development of their host communities.
NEITI’s Executive Secretary, Dr Ogbonnaya Orji, made the call at the official presentation of a Policy Brief on three per cent Operating Expenses (OPEX) for Host Communities on Thursday, February 27, 2025, in Abuja.
The policy brief is titled: “Giving host communities their due: Revisiting the three per cent OPEX funding framework for host community development trusts in Nigeria”.
The unveiling, organised by the Spaces for Change, a civil society organisation (CSO), had in attendance stakeholders from the oil industries and representatives of the host communities, among others.
Speaking at the event, Orji emphasised the need for greater corporate commitment to community development.
“It is an honour to address you today on a matter of profound importance to Nigeria’s oil and gas industry.
“And more importantly, to the communities that bear the direct impact of resource extraction—the Host Communities Trust Fund.
“This fund, established under the Petroleum Industry Act (PIA 2021), is designed to enhance the welfare of host communities, ensure sustainable development, and promote peaceful coexistence between industry operators and their host environments,” he said.
Orji said the successful implementation of the initiative required a collective effort, involving not only government agencies but also the vital contributions of NEITI and non-state actors, including CSOs, community leaders, and the media.
“The Role of NEITI as the national representative of the global Extractive Industries Transparency Initiative, plays a crucial role in promoting transparency and accountability in Nigeria’s extractive sector.
“Specifically, in the implementation of the Host Communities Trust Fund, NEITI’s role is multifaceted,” said Orji.
According to him, NEITI is mandated to ensure openness in revenue flows and financial transactions being pivotal in tracking funds allocated to host communities.
He also urged host communities to play their part by taking ownership of projects in their areas and ensuring their proper maintenance.
“The host communities must be willing to take responsibility by owning and maintaining the projects implemented for their benefit,” he emphasised.
Dr Dekor Robinson, Chairman of the House Committee on Host Communities in the House of Representatives, pledged continued engagement to ensure the effective utilisation of funds allocated to host communities.
Represented by Mr Clement Jimbo, a fellow committee member in the House of Representatives, Robinson emphasised that the three per cent allocation was not insignificant.
He stressed the importance of host communities taking full control of the funds to achieve their development goals.
In her presentation, Mrs Victoria Ibezim-Ohaeri, Executive Director of Spaces for Change, highlighted her organisation’s role as a key partner in recognising both the achievements and gaps in the fund’s utilisation.
Ibezim-Ohaeri encouraged companies to engage host communities as partners and emphasised her organisation’s commitment to addressing the identified gaps.
By Emmanuella Anokam
