N/Delta Stakeholders Prioritize 6% HOSTCOM Fund Increase Over Tantita Contract Spread

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Stakeholders from oil-producing communities in the Niger Delta have declared that the immediate priority of host communities is the increase of the Host Community Development Fund under the Petroleum Industry Act (PIA) from three per cent to six per cent, rather than calls for the decentralisation or spread of Tantita Security Services Nigeria Limited’s pipeline surveillance contract.

The position was reached on Wednesday at the end of a joint retreat involving the House of Representatives Committee on Host Communities (HOSTCOM), the House Committee on Public Petitions, and HOSTCOM Trustees from across the Niger Delta, held at the Protea Hotel, Owerri.

The stakeholders said that while the security of oil facilities remains important, the pressing developmental needs of host communities require urgent legislative intervention through an amendment to the Petroleum Industry Act, 2021.

Chairman of the House Committee on HOSTCOM, Hon. Dekor Dumnamene Robinson, disclosed that the committee would sponsor an amendment bill seeking to increase the statutory contribution of oil and gas companies to host communities from the current 3% of annual operating expenditure to 6%.

According to him, five years after the implementation of the PIA, it has become evident that the present allocation is inadequate to address the numerous socio-economic and environmental challenges facing oil-producing communities.

“Three per cent was a good start in 2021, but experience has shown clearly that it is insufficient to meet the critical development needs of our communities,” Robinson stated.

“Our people are still confronted with poor roads, inadequate healthcare facilities, unemployment, environmental degradation, lack of potable water, and poor educational infrastructure. These realities demand a stronger commitment and increased funding,” he added.

He explained that the proposed amendment would follow due legislative process in the House of Representatives, with the backing of HOSTCOM Trustees and other stakeholders from the Niger Delta region.

“The House Committee on HOSTCOM will work closely with relevant stakeholders to ensure this amendment is drafted, presented, and pursued through the constitutional legislative process. This is about justice, development, and sustainable peace in the Niger Delta,” he said.

Participants at the retreat stressed that increasing the HOSTCOM allocation would have a more direct impact on the lives of people in oil-bearing communities than debates surrounding the expansion or decentralisation of security surveillance contracts.

A communiqué issued at the end of the meeting stated that stakeholders resolved to focus attention on policies capable of improving living conditions, promoting development, and strengthening community participation in the oil and gas sector.

The communiqué further urged relevant institutions, including the Federal Ministry of Petroleum Resources, the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Federation Account Allocation Committee (FAAC), to support the proposed amendment.

Delivering the keynote address at the retreat, Professor of Energy and Comparative Environmental Law, Prof. S. C. Dike, described the proposed amendment as one of the most important legislative interventions in the Niger Delta since the enactment of the PIA.

“Section 240 of the PIA fixed the host community share at 3% of operating expenditure. In 2021, that was widely celebrated as progress, but in 2026, realities on the ground have shown that it is no longer enough,” Dike said.

“Increasing the provision from 3% to 6% is fair, achievable, and consistent with the spirit and objectives of the Petroleum Industry Act. It is the immediate legislative solution needed to address growing developmental concerns in host communities,” he added.

He noted that host communities continue to bear the environmental and economic burden of oil exploration and therefore deserve stronger developmental support from the proceeds generated from their land and resources.

Stakeholders at the retreat also resolved that the proposed amendment should strengthen the governance structure of HOSTCOM trusts by ensuring broader participation of women, youths, and other critical stakeholders in decision-making processes.

According to participants, greater inclusiveness in the management of host community funds would enhance transparency, accountability, and grassroots development.

“The focus should be on empowering communities and ensuring sustainable development, not unnecessary distractions,” one stakeholder stated during deliberations.

Another participant noted that increasing the HOSTCOM fund would help reduce tensions in oil-producing areas and promote peace by giving communities a stronger sense of ownership and inclusion.

Copies of the resolutions reached at the retreat are expected to be transmitted to the Speaker of the House of Representatives, the President of the Senate, President Bola Ahmed Tinubu, and other relevant authorities for necessary action.

Analysts have described the proposed amendment as a potentially significant shift in Nigeria’s oil and gas governance framework, capable of reshaping relations between oil companies and host communities across the Niger Delta.