Communities in Isoko land, Delta State, have issued a stern warning to oil companies operating in their area, threatening to shut down oil exploration activities over the alleged failure to release statutory development funds mandated under the Petroleum Industry Act (PIA) 2021.
In a statement jointly signed by Erere Okpako and Angela Akpofa for the Isoko Grassroot Mobilizers, the stakeholders said it was disturbing that nearly two years after the inauguration of the AIO Host Community Development Trust (AIO HCDT), “nothing tangible has been done,” despite the law requiring oil firms to remit three percent of their operating expenditure (OPEX) to host communities.
“Even the five percent administrative fund that would enable a proper takeoff has not been released,” they lamented. “We wonder if PIA is a curse or a blessing?”
According to the stakeholders, 75 percent of the funds were meant for infrastructure, 20 percent for investment, and five percent for administration — yet none of these have been actualized.
They accused the Nigerian National Petroleum Company Exploration and Production Limited (NEPL), operators of OML 26, and Sterling Global, of neglecting their responsibilities. “Unless something urgent is done, operations and activities of these companies may not be guaranteed,” they warned.
The group further disclosed that “numerous meetings” had been held with NEPL in Warri and Ozoro, but no progress had been recorded, leaving the AIO HCDT “without tools or office accommodation.”
“We can no longer allow them to take us for granted,” the statement read. “We implore the operators to expedite actions to forestall any possible consequences that may result from a shutdown.”
Insiders at NEPL reportedly admitted to delays but pleaded for patience and understanding.
The Isoko stakeholders also appealed to federal and state authorities to intervene urgently “to save the situation and prevent economic losses.”
Isoko Communities Threaten to Halt Oil Operations Over PIA Neglect
