• Isokoland
• Oil Exploration
• Stakeholders

ISOKO STAKEHOLDERS THREATEN TO SHUT DOWN OIL FACILITIES OVER NEGLECT, NON-IMPLEMENTATION OF HOST COMMUNITY FUND

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  CapitalTimesNews / 1 month
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• 3 min read

By Akpo Ojo Stakeholders in Isokoland, Delta State have threatened to shut down oil operations in their communities over what they described as decades of neglect by oil companies operating in the area and the failure to implement provisions of the Petroleum Industry Act (PIA) 2021 regarding host community development. The aggrieved communities, under the aegis of Isoko Grassroots Mobilizers, expressed their frustration in a statement jointly signed by Erere Okpako and Angela Akpofa, lamenting that almost two years after the inauguration of the AIO Host Community Development Trust (AIO HCDT), nothing tangible has been achieved. According to the group, the oil companies, particularly the Nigerian National Petroleum Company Exploration and Production Limited (NEPL) — operators of OML 26 — and Sterling Global, have failed to release the statutory three percent of their Operating Expenditure (OPEX) meant for the development of host communities as stipulated in the PIA. “As we write this, even the five percent meant for administrative take-off has not been released, let alone the funds for infrastructure and investment,” the statement read. By law, 75 percent of the fund is to be devoted to infrastructure development, 20 percent for investments, and five percent for administrative costs. However, the stakeholders say the HCDT has been operating without basic tools or even office accommodation. The group noted that despite several meetings held with NEPL officials in Warri and Ozoro to resolve outstanding issues, “it has been a case of back and forth, leaving the communities frustrated and disillusioned.” A community leader who spoke on condition of anonymity lamented: “We wonder if the PIA is a curse or a blessing. “Before its enactment, we had the Global Memorandum of Understanding (GMoU) which, though imperfect, provided a working structure. But now, nothing seems to be working under the new arrangement.” The stakeholders revealed that although NEPL had in October 2025 communicated the approval of the five percent administrative budget to the AIO board of trustees, the corresponding funds have yet to be credited to the HCDT’s bank account, thereby stalling its operations. The development has heightened tension across Isoko communities, with groups such as the Isoko Youth Assembly reportedly mobilizing for a showdown with the oil companies. An insider at NEPL, however, admitted that the process has been slow but appealed for understanding, assuring that efforts were ongoing to resolve the matter. The Isoko stakeholders warned that unless urgent steps are taken to address their grievances, they might be forced to disrupt oil production activities in the area. “The oil companies should not overreach their luck. We can no longer allow them to take us for granted,” the group stated. “We implore the operators to expedite actions to forestall any possible consequences that may result from a shutdown.” They also called on the federal government to intervene immediately to avert a looming crisis that could lead to significant economic losses.