Communities in Isoko land, Delta State, have threatened to shut down oil operations in their area over the failure of oil companies to release funds meant for community development as required by the Petroleum Industry Act (PIA) 2021.
In a statement jointly signed by Erere Okpako and Angela Akpofa for the Isoko Grassroot Mobilizers, the stakeholders expressed deep disappointment over what they described as “decades of neglect” despite their contribution to the nation’s oil wealth.
They noted that nearly two years after the inauguration of the AIO Host Community Development Trust (AIO HCDT) — the body set up under the PIA to manage development projects — no meaningful action has been taken.
Under the PIA, oil companies are mandated to allocate three percent of their annual operating expenditure (OPEX) to host communities through the HCDTs. Of this fund, 75 percent is reserved for infrastructure projects, 20 percent for investment, and 5 percent for administrative costs.
However, the group lamented that not even the five percent administrative fund has been released, leaving the AIO HCDT unable to function properly.
“The AIO HCDT has been working without tools, not even office accommodation. Several meetings have been held with NEPL in Warri and Ozoro, but there has been no progress. Enough is enough,” the statement read.
The communities accused Nigerian National Petroleum Company Exploration and Production Limited (NEPL), operators of OML 26, and their partners, Sterling Global, of failing to fulfill their obligations under the law. They warned that if nothing is done soon, oil operations in Isoko land may be halted.
“We wonder if the PIA is a curse or a blessing,” a community leader said, lamenting that the situation has worsened compared to the era of the Global Memorandum of Understanding (GMoU), which previously governed community relations.
The statement revealed that NEPL had approved the release of the five percent administrative fund earlier in October 2025 but failed to credit the trust’s account, further delaying operations.
With tensions rising, the Isoko Youth Assembly has joined in threatening a shutdown of oil facilities, while the AIO HCDT’s Board of Trustees remains caught between the frustrated communities and slow-moving oil firms.
An insider at NEPL admitted that progress had been slow but urged the communities to remain patient as efforts continue to resolve the issue.
The Isoko stakeholders, however, warned the oil companies against testing their patience, saying, “We can no longer allow them to take us for granted. The operators must act fast to prevent any disruption that could affect national oil production.”
They also appealed to the federal and state governments to intervene urgently to prevent a full-blown crisis that could lead to economic losses.
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