Niger Delta Communities issues ultimatum to Conoil to pay 3% OPEX fund, others

Niger Delta Communities issues ultimatum to Conoil to pay 3% OPEX fund, others

By: Michael Mike

Niger Delta Communities have issued an ultimatum to the Conoil Producing Ltd to comply with the implementation of the Petroleum Industry Act, 2021 in respect of host communities or get its operations in the area disrupted.

The host communities in Akwa Ibom, Bayelsa, Delta and Ondo states at the weekend vowed to disrupt activities of Conoil within their communities if it failed to meet up with its responsibilities as stated in the PIA Act by 31st October 2025.

The communities alleged that the oil company in the last three years failed to implement the Provision of the Petroleum Industry Act, 2021 with respect to funding and operation of all the Host Community Development Trust (HCDT).

The Petroleum Industry Act (PIA) of 2021 mandates oil and gas companies in Nigeria to contribute 3% of their annual operating expenditure (OPEX) to a Host Community Development Trust (HCDT) for the development of communities directly affected by petroleum operations. This contribution is intended to provide compensation and development support to these communities. Funds are typically allocated with 75% for capital projects, 20% for a reserve fund, and 5% for administrative costs, though guidelines on the 5% are still evolving.

It was alleged that Conoil Ltd was yet to implement this section of the Act, about three years after the Act came into existence.

A source within the presidency said the chairmen of the HCDTS from the affected states were in Abuja to table their grievances before the Nigerian Upstream Petroleum Regulatory Commission, NUPRC over the weekend.

The source however said the issue remained unresolved leading to the ultimatum.

The already agitated youth in the communities have vowed to shut down Conoil operations if it failed to implement the provision by the end of October 2025.
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