Senate committee chairman warns NUPRC to act tough on firms flouting Petroleum Industry Act as Total Energies launches major projects in Rivers
A senior Senate committee has issued stern warnings to oil companies that have failed to establish Host Communities Development Trusts, threatening sanctions through the Nigerian Upstream Petroleum Regulatory Commission.
Senator Benson Agadaga, Chairman of the Senate Committee on Host Communities, delivered the ultimatum during the commissioning of seven development projects by Total Energies in Rivers State on Wednesday.
The projects, spanning infrastructure, healthcare, agriculture and economic empowerment, were launched at the Obagi Oilfield Host Communities Development Trust in OML58, located in Ogba/Egbema/Ndoni Local Government Area.
“There is a pronouncement on the PIA for IOCs to set up the HCDT, and where they fail to do so after three months, they will be sanctioned,” Agadaga declared. “Those who have not done it will be sanctioned because this is the only hope of peace and stability in the oil-producing areas.”
The Senator praised the noticeable reduction in hostility within oil-producing communities, attributing the improvement to the Petroleum Industry Act’s implementation through Host Communities Development Trusts.
“Host communities are no longer as hostile as before because all of us are expecting that the PIA will give us the required dividends, and now we are seeing them,” he stated.
Agadaga emphasised Nigeria’s production targets, saying: “We no longer want disruptions in our productions, we need maximum production, we need to meet up with targets, at least two million barrels per day, so we don’t want any interruptions.”
The commissioned projects align with the 17 United Nations Sustainable Development Goals and represent outcomes from the establishment of HCDTs under the Petroleum Industry Act 2021, which positioned communities at the centre of development planning.
Rivers State Deputy Governor Professor Ngozi Odu, who hails from the area, recalled the infrastructure challenges faced by residents before the project implementations.
She commended Total Energies and its partners for adhering to PIA requirements whilst thanking President Bola Tinubu and National Assembly members for creating the enabling environment.
Local resident Phelomina Chinagorom expressed relief about the new healthcare facilities, stating that women previously suffered greatly due to limited access to medical services.
“Women suffered a lot in the past due to lack of access to health facilities,” she said, adding that the newly constructed facilities would “ease their pains and improve their health.”
Total Energies EP Nigeria Limited Managing Director Matthieu Bouyer revealed that 539 projects had been identified and approved for implementation across 64 host communities within the Community Development Plan.
The seven commissioned projects represented priorities identified by communities and executed by locally-chosen Board of Trustees and Management Committee members.
“We will continue to work with industry stakeholders for effective implementation of the PIA to ensure the sustainable socio-economic development of our host communities in particular and the country at large,” Bouyer stated.
He urged communities to maintain full ownership of the projects, emphasising: “Sustainability depends not just on infrastructure, but on maintenance, protection, and responsible use. Let these projects serve you and your generations to come.”
Captain John Tonlagha, Executive Commissioner of the Nigerian Upstream Petroleum Regulatory Commission, described the projects as demonstrating “wisdom, accountability, and diligence.”
“This milestone translates to impacts, touching lives and strengthening sustainability,” he said. “It shows that prioritising dialogue over conflict is what has made this achievement possible.”
Tonlagha highlighted the projects’ significance for NUPRC, stating they proved the regulatory framework’s effectiveness in ensuring communities benefit tangibly from petroleum resources.
“The future of our industry lies not only in the production of revenue but also in how well it uplifts the communities,” he added.
House Committee on Host Communities Chairman Dumnamene Dekor, represented by member Cyril Hart, praised the project quality and expressed satisfaction at communities enjoying socio-economic benefits from oil and gas revenue.
The development comes as Nigeria continues implementing the Petroleum Industry Act 2021, which mandates oil companies to establish and fund development trusts for host communities.
Total Energies has aligned with PIA requirements by incorporating and funding five HCDTs, including the Obagi trust that hosted Wednesday’s commissioning ceremony.
