Ensure Budgetary allocations to Oil Host Communities Reflect people’s priorities, FENRAD urges PIA

A clarion call has been made to ensure transparency, community needs assessment and implementation in Host Community Development Trust Funds under the umbrella of the Petroleum Industry Act (PIA), 2021.

The Foundation for Environmental Rights, Advocacy & Development (FENRAD )an Environmental Rights Advocacy Organization has called for greater transparency, accountability, and community participation in the implementation of the Host Community Development Trust Funds (HCDTFs) as provided for under the Petroleum Industry Act (PIA), 2021.

As the PIA mandates the creation of HCDTFs to ensure oil-bearing communities benefit directly from petroleum operations, FENRAD urges that budgetary allocations to host communities in the oil bearing communities in the Southeast zone must reflect the real needs and priorities of the people. This can only be achieved through genuine community needs assessments involving traditional institutions, community-based organizations, youth and women’s groups, and other local stakeholders.

Executive Director FENRAD comrade Nelson Nnanna Nwafor made this intervention during a Stakeholders dialogue on the implementation and community engagement of the Host community trust Fund in Port Harcourt.

Comrade further stressed that the implementation of these funds must be transparent, with clear reporting and monitoring mechanisms to track how funds are allocated and utilized. There should be no room for political interference or elite capture.

He reiterates that for the PIA to fulfill its promise of inclusive development and peaceful coexistence, there must be:

.Inclusive Representation on Trust Boards
Ensure community representatives on the Board of Trustees are elected transparently by the people and include women, youth, traditional rulers, and persons with disabilities.

Rotate leadership roles among different segments of the host communities to promote inclusion and equity.
Community Needs Assessment (CNA) and

. Participatory Planning
Carry out thorough, periodic needs assessments to identify real and current development priorities.

Involve community-based organizations (CBOs), religious groups, women and youth associations in identifying and prioritizing projects.

Capacity Building and Civic Education
Train community members on financial literacy, governance, and oversight responsibilities.

Raise awareness of the provisions of the PIA, especially regarding their rights and roles under the Trust Fund mechanism.

Transparency and Access to Information
· Regular disclosure of financial flows to and from the Trust Funds,

· Independent audits and community scorecards,

8 .Publish annual budgets, project plans, procurement processes, and expenditures for community review.

A strict adherence to the 3% operating expenditure commitment to host communities by oil companies

Use town hall meetings, radio announcements, and notice boards to disseminate financial reports and implementation updates.

Grievance Redress Mechanisms
Establish functional and accessible grievance mechanisms to handle complaints about fund mismanagement or exclusion from processes.
Ensure these mechanisms are culturally appropriate and trusted by the community.
Monitoring and Evaluation by the Community

Create Community Project Monitoring Committees to track progress and report any irregularities.

Encourage partnerships with local CSOs for independent monitoring and social audits.

Promote coordination between community leaders, local governments, and development organizations to align Host Community Trust projects with broader development goals.

Involve NGOs in technical support, policy dialogue, and capacity development.

Ensure Equity in Project Distribution
Develop a transparent formula to ensure equitable distribution of projects and funds among all segments of the host communities, including marginalized or smaller settlements

FENRAD stands ready to support communities, government agencies, and operators in ensuring that the HCDTFs become a tool for development, peace, and justice in Nigeria’s oil-bearing regions especially in the oil bearing communities in the Southeast Region

Capacity building for community members to engage in participatory budgeting and monitoring should be seriously integrated for community ownership and participation

FENRAD is committed to ensure it engages all stakeholders to ensure the optimal use of the resources in the Host community trust Fund and for the Benefit of the Host communities.

Signed

COMRADE NELSON NNANNA NWAFOR
Environmental Rights Advocate & Human Rights Defender
Executive Director

FOUNDATION FOR ENVIRONMENTAL RIGHTS, ADVOCACY & DEVELOPMENT FENRAD-NIGERIA

HEAD OFFICE: Plot 44. st.Micheal Road by Mosque street, 4th Floor,Front Aba,Abia State,Nigeria

SOUTHEAST REGIONAL OFFICE
Plot 11/12 Ezillo Avenue,Independence Layout,Enugu.Enugu State

NATIONAL ADVOCACY OFFICE: Plot 9 Lumsar Street,Abacha Estate Behind Sheraton Hotel Zone 4 Wuse, Abuja

TEL/WHATSAPP; 08033383708,07062949232 Email;fenradnigeria@yahoo.com,info.fenradnigeria@gmail.com, info@fenrad.org.ng. http://www.fenrad.org.ng