Petroleum Industry Act and the Host Communities Development Trust: Where are the Watchmen?

Abstract

The Nigeria government has through the instrumentality of the Petroleum Industry Act enacted in 2021 changed the texture of governance and stakeholder relations in its petroleum industry. The novel inclusion of Host Communities’ Development Trust in the Act sought to pacify communities which are often at the center of the negative externalities occasioned by the activities of oil exploration and exploitation. This study explores the content of the Act with special focus on the mandatory corporate social responsibility of oil companies to host communities, and the role of non-governmental organisations, state governments and other factors in the provision of qualitative interventions. The study also examined probable challenges that could emanate from the implementation of the Act and lead to goal displacement, such as the absence of specific roles for host communities and state
governments’ in the formulation of needs assessment plans. The study concludes that state governments and non-state actors are key stakeholders capable of empowering host communities to demand financial transparency, accountability and commitment from each trust established by oil companies for the sustainable development of their localities.