The Pan Niger Delta Forum (PANDEF) has called for an urgent review of the Petroleum Industry Act (PIA), alleging that its current implementation unfairly disadvantages oil-producing communities in the Niger Delta.
Disclosing this in a statement, PANDEF’s National Spokesman and Publicity Secretary, Chief Dr. Obiuwevbi Ominimini, said certain provisions of the PIA work against the interests of host communities. He noted that while Section 257 of the Act allows funds meant for host communities to be deducted in the event of vandalism of oil facilities, Section 236 mandates oil companies to pay daily penalties of $2,500 to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) when they fail to comply with the law.
According to PANDEF, such penalty payments should instead be paid directly to the affected host communities, rather than to the regulator, which it argued has been benefiting financially from the non-compliance of oil companies.
The group accused the NUPRC of allegedly tolerating non-compliance by oil firms because the fines serve as a revenue source for the agency. It further lamented that since the enactment of the PIA, several Host Community Boards of Trustees and Management Committees have not received distribution matrices from oil companies, a situation it said has stalled the execution of critical development projects in oil-bearing communities.
PANDEF warned that funds earmarked for such projects are losing value due to inflation, thereby worsening socio-economic conditions in the region.
The group called on the Federal Ministry of Petroleum Resources to exercise its oversight function over the NUPRC and ensure that the Chief Executive of the commission, Engr. Gbenga Komolafe, is held accountable.
In addition, PANDEF urged President Bola Ahmed Tinubu to prioritise the revival of seaports in the Niger Delta as preparations begin for the 2026 federal budget.
It decried what it described as the over-concentration of container traffic in Lagos ports while ports in Warri, Sapele, Koko, Burutu, Port Harcourt and Calabar remain dormant and deteriorating.
According to PANDEF, the revitalisation of these ports would boost economic activities in the Niger Delta, a region it said contributes significantly to Nigeria’s oil and gas revenues but has derived little benefit in return.
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