PIA: Senate Threatens Sanctions as Oil Firms Flout Host Communities’ Law

Sunday Aborisade in Abuja

The Senate has issued a stern warning to International Oil Companies (IOCs) operating in Nigeria, vowing tough sanctions against any firm that fails to comply with the Petroleum Industry Act (PIA) provisions on the establishment and implementation of Host Communities Development Trusts (HCDTs).

Chairman of the Senate Committee on Host Communities, Senator Benson Agadaga, delivered the warning during an interactive session with the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).

He insisted that the era of lax evasion was over and that defaulters must face the full weight of the law.

Agadaga, according to a statement by his Media Office yesterday, in Abuja, acknowledged that the PIA, through the HCDT framework, has contributed to reduced hostility in the oil industry and relative peace in the Niger Delta.

However, he stressed that the gains remain fragile due to widespread non-compliance by several oil firms.

Speaking with palpable frustration, the Bayelsa East lawmaker said decades of oil exploration had left many host communities environmentally devastated and economically abandoned, despite their central role in sustaining the nation’s economy.

He said, “I come from Oloibiri, where oil was first discovered in Nigeria. Shell has left that place completely devastated.

“There is nothing to show for their operations. The people are worse off today than before oil was found.”

According to him, the PIA was enacted to correct such historic injustices, but poor implementation has continued to undermine its objectives.

He lamented that while a few companies have embraced their responsibilities, many others have failed woefully.

“A lot of them are not doing what the law says. NUPRC, as the regulator, must make them sit up. Where they fail, there are clear sanctions, including withdrawal of operating licences,” Agadaga warned.

He disclosed that his committee has already published the names of non-compliant oil companies, noting that existing regulations empower the regulator to act decisively against erring operators.

He said, “NUPRC should not fail in its responsibility. If they do, we will oversee them and make them sit up,” underscoring the Senate’s determination to enforce accountability.

Agadaga linked the neglect of host communities to broader national instability, recalling the economic and social tensions that followed the removal of fuel subsidy.

He argued that Nigeria’s economic benefits are derived from lands that have been severely disturbed, while the people who bear the burden are left impoverished.

“The wealth solving Nigeria’s problems is coming from the lands God has given to these communities, yet they are the ones suffering. This injustice must end,” he said.

The session came amid a leadership transition at the NUPRC following the resignation of its chief executive, a development Agadaga described as a critical moment to reset the regulator’s priorities.

He demanded detailed disclosures from the commission on the implementation of the PIA, including funds paid to host communities, identities of beneficiaries and fund managers, and evidence of judicious utilisation of the resources.

“How much has been paid out? Who are the beneficiaries? Who are the fund managers? This is public money, and we must oversee it,” he insisted.

The senator was accompanied by other members of the Senate Committee on Host Communities, signalling a united legislative front to ensure that oil-producing communities finally receive the justice and development promised under the PIA.