Akwa Ibom, Bayelsa, Delta, and Ondo Communities Vow to Disrupt Oil Operations if Conoil Fails to Fund Development Trust by October 31.
A tense standoff is building in the Niger Delta as host communities across four states have issued a stern ultimatum to Conoil Producing Limited, threatening to shut down its operations if the company fails to implement the provisions of the Petroleum Industry Act (PIA) by October 31, 2025.
Communities in Akwa Ibom, Bayelsa, Delta, and Ondo States have accused the oil firm of failing to fulfil its legal obligations under the PIA for nearly three years, leading to growing frustration and agitation in the region.
The core of the dispute centres on the Host Community Development Trust (HCDT), which is the cornerstone of the PIA’s plan to bring peace and development to the oil-producing areas.
What is Conoil Being Accused Of?
The agitated communities claim that Conoil has completely failed to implement the section of the PIA that mandates all oil and gas companies to contribute 3 per cent of their annual operating expenditure (OPEX) to the HCDT.
The PIA, enacted in 2021, clearly states that these funds are meant for the direct development of the communities that host and are affected by petroleum operations. The funds are legally structured as follows:
- 75 per cent is for capital projects (direct community development).
- 20 per cent is kept in a reserve fund.
- 5 per cent is allocated for administrative costs.
The communities allege that Conoil has not funded or properly operationalised these Trusts, denying them access to the mandatory development funds.
The Threat of Disruption
The chairmen of the HCDTs from the affected states recently travelled to Abuja to present their grievances to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). However, with the issue unresolved, the communities are now relying on direct action.
Agitated youths in these host communities have vowed to carry out their threat to shut down all of Conoil’s operations in their areas if the company does not fully comply and implement the HCDT funding as mandated by the law before the deadline of October 31, 2025.
This ultimatum highlights the growing impatience and resolve among Niger Delta communities to see the benefits of the PIA realised, turning the legal framework into a powerful tool for enforcing corporate responsibility.
