Petroleum Host and Impacted Communities Development Bill 2018

A Bill creates a framework for developing communities impacted by petroleum operations by requiring oil companies to fund community projects. It targets oil-producing communities and companies. This promotes sustainable development in affected areas.

What Is This Policy?

A bill that proposed a structured framework for the development of communities hosting or impacted by petroleum operations, requiring oil companies to contribute a percentage of operating expenditure to a dedicated trust fund for community development.

Who Does It Target?

Communities in oil and gas producing areas Oil and gas operating companies State and local government authorities in producing areas Community development organizations

What Does It Aim to Achieve?

Address the longstanding grievances of oil-producing communities by creating a transparent, accountable mechanism for channeling petroleum industry resources into sustainable development projects in affected areas.

Key Features

Host Community Development Trust: Establishment of trust funds managed for the benefit of petroleum host communities Company Contributions: Petroleum operators contribute a percentage of their annual operating expenditure to the trust Needs Assessment: Community development plans based on participatory needs assessments Governance Structure: Board of trustees with representation from communities, operators, and government Accountability: Auditing, reporting, and transparency requirements for trust fund management

Current Status

Rollout Stage: Enacted as Chapter 3 of the Petroleum Industry Act, 2021 Coverage: All petroleum host communities across Nigeria Lead Agency: Federal Ministry of Petroleum Resources / Nigerian Upstream Petroleum Regulatory Commission Contribution: 3% of operating expenditure from the preceding year by petroleum operators

How to Access

Communities participate through the Host Community Development Trust structure established under the PIA. Communities are identified and registered by operators as host or impacted communities Community development plans are developed through participatory processes Trust funds are managed by boards with community representation

Official Resources

Website: pia.gov.ng Contact: Federal Ministry of Petroleum Resources, Abuja

Legal Framework

The Petroleum Host and Impacted Communities Development Bill would, when enacted, supplement or modify the Host Community Development Trust provisions in the Petroleum Industry Act 2021. It derives authority from Section 44(3) of the 1999 Constitution (Federal Government mineral resource ownership) and the PIA 2021 framework. It aligns with the UN Guiding Principles on Business and Human Rights, the IFC Performance Standards on community engagement, and the ECOWAS protocols on resource community rights.