Niger Delta Communities Issue Ultimatum To Conoil, Demand 3% OPEX Fund, Other Obligations

Niger Delta communities have issued an ultimatum to Conoil Producing Ltd, demanding compliance with the Petroleum Industry Act (PIA) 2021 regarding host community obligations.

They have threatened to disrupt Conoil’s operations in the area if the company fails to meet these obligations.

Over the weekend, host communities in Akwa Ibom, Bayelsa, Delta, and Ondo states vowed to disrupt Conoil’s activities within their communities if the company fails to fulfill its responsibilities as outlined in the PIA by October 31, 2025.

The communities allege that for the past three years, Conoil has failed to implement the provision of the Petroleum Industry Act 2021 regarding the funding and operation of the Host Community Development Trusts (HCDTs).

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% allocation are still evolving.

The communities allege that Conoil has yet to implement this section of the Act, nearly three years after its enactment.

According to a source within the presidency, the chairmen of the HCDTs from the affected states were in Abuja over the weekend to present their grievances to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The source added that the issue remains unresolved, leading to the ultimatum.

Youths in the communities, already agitated, have vowed to shut down Conoil’s operations if the company fails to implement the provision by the end of October 2025.