Date Issued: May 14, 2026 
Event Dates: May 12 and May 14, 2026 
Location: De Exchange Hotel, Eket, Akwa Ibom State.

Preamble

Nigeria’s oil producing regions continue to experience significant environmental, social, and economic impacts arising from extractive activities. While regulatory frameworks such as the Petroleum Industry Act (PIA) provide mechanisms for improved governance and community development through the Host Community Development Trust (HCDT), gaps remain in ensuring that community voices particularly those of marginalized groups are reflected in impact assessments and decision-making processes.

Traditional leaders play a critical role in shaping community engagement, influencing local governance structures, and facilitating dialogue between communities, government, and private sector actors. However, there is a need to strengthen their capacity and engagement on issues related to impact assessments, environmental governance, and accountability.

In this context, the Fair Finance Nigeria (FFNG) Coalition convened a 2-day town hall consultation workshop alongside targeted advocacy engagements with traditional leaders in Eket, Akwa Ibom State. This workshop was a follow up activity under the FFNG case study conducted in 2024 (published in 2025) on The Oil Companies, ESG Compliance and Financial Sector through the eyes of the Host Communities. It was a detailed living experiences of communities in Ibeno and Eastern Obolo Local Government Areas in Akwa Ibom State, and Ayakirama and Azuzuama communities in Southern Ijaw, and Yenagoa Local Government Area of Bayelsa State in Nigeria, highlighting the impact of oil companies on the region and responsibilities of the companies, the authorities and financial institutions and investors.

Rationale

The consultation was aimed at bridging the gap between communities, traditional institutions, and policy processes by:

  • Creating a platform for community voices to be heard on the impacts of oil extraction.
  • Strengthening awareness of environmental and social impact assessment processes.
  • Promoting accountability and transparency in extractive sector governance.
  • Engaging traditional leaders as champions of inclusive and sustainable development.

Objectives

The overall objective is to strengthen community participation and traditional leadership engagement in impact assessment processes and accountability mechanisms in oil producing regions.

Specific Objectives:

  • To provide a platform for communities to share experiences and concerns on extractive impacts.
  • To build the capacity of traditional leaders on impact assessments and governance frameworks.
  • To advocate for inclusive and transparent implementation of HCDT structures.
  • To generate actionable recommendations for policy and stakeholder engagement.

Participants

The workshop convened a total of 41 participants drawn from two states, fostering inclusive dialogue and stakeholder engagement on key issues affecting host communities. The participants included representatives of Host Community Development Trusts (HCDTs) from Ibeno and Eket; the Chairman of Ibeno Local Government Area; His Royal Majesty King Wapaebiama David Amakiri, the Obanobhan of Emeyal Clan, Ogbia Local Government Area, Bayelsa State; His Royal Majesty Chief Unaowo, Clan Head of Atibe, Eket, Akwa Ibom State; as well as representatives of civil society organizations (CSOs) and the media.

Observations

Participants observed the following:

  • Seismic activities of oil companies have debilitating impact in communities such as cracking of buildings.
  • Allegation of corruption and opacity in the operation and management of the HCDT Funds kills trust of community members in the HCDT, denying the Trust of the needed support and monitoring of projects.
  • The court hardly prosecution IOCs that have defaulted in their operations and where judgements had been delivered in favor of the communities, it is not enforced.
  • Oil and gas pollution, Coastal and gully erosion, affects mostly fishermen, land, farmers, and people with disabilities.
  • Oil and gas activities pose severe health hazards such respiratory and reproduction conditions, resulting in infertility and lowered life expectancy in oil communities.
  • Poor financial data disclosure by settlors and regulators.
  • Few women are awarded contracts or benefits from the HCDT funds and projects.
  • Poor representation and participation of women, youths, and persons with disabilities in decision making and leadership in the HCDT board.
  • Regulatory capture by settlors and political interferences.
  • Loss of means of livelihood to host community residents due to damage to farmlands, rivers, etc. as a result of oil exploration activities.
  • Community members are usually given forms to fill for environmental hazard compensation to be paid, unfortunately none has been paid for over 25 years.
  • CSOs working in the space are mostly working in silo instead of synergistically, hence the abysmal impact of their interventions.
  • Environment, social, and governance (ESG) standards are completely ignored or partially complied with.
  • Poor response of government agencies to issues by settlors, hence limiting community development and advancement of climate justice.
  • Court cases and issues surrounding the Stubb Creek is severely hampering community developments.

Opportunities

Meanwhile, we also identified opportunities for improvement including:

  • Capacity building and training for Traditional Rulers, Women led organizations, youth groups, CBOs, and other community stakeholders.
  • Strengthening community feedback systems and mechanisms.
  • Strengthening financial management and regulatory systems.
  • Effective legislation and political will to amend and implement laws.
  • Different HCDTs can come together to take up a court case.
  • Technical support for host communities to help draw further attention to their challenges at the global level.
  • Settlors who have divested can still be sued to court internationally after they have left their previous mining locations without compliance to the ESG standards and payment for the gas flair penalty.

Recommendations

Participants recommended as follows:

  • NASS should amend the PIA 2021 to ring fence the gas flare penalty only for the purpose of environmental remediation and relief of the host community as the current provision of the PIA allows for the dual utilization of the fund.
  • The President should rescind his Executive Order 9, to pay the gas flare penalty as revenue to the federation account, which is a general pool for expenditure of the federation, at the expense of the people who bear the brunt of this gas flare.
  • Federal Government of Nigeria should not see the gas flare penalty as a revenue stream as it violates the polluter pay principles. The polluter pay principle ensures that polluters suffer reputational damage whenever they incur pollution fines. Treating gas flare penalty as a revenue source reliefs polluters of these burden and perpetuates injustice on the host communities.
  • Effective legislation and strong political will to implement the laws that strengthen transparency and accountability provisions in the PIA.
  • Regular town hall meetings with host communities.
  • Setting up independent project monitoring groups.
  • Disclosure of financial report by settlors and enforcement of gas flare penalties.
  • Review of the PIA to provide for 40% representation of women, youths, and persons with disabilities in the composition of the membership of the Trust.
  • Unbundling of NUPRC to enhance efficiency in host community affairs.
  • Provision of finance and skill acquisition to empower community members who have lost their source of livelihood due to oil exploration activities.
  • Advocacy to uphold to the ESG compliance standard both IOCs, Settlors and regulators.
  • Trust should be made to pay penalties for mismanagement of funds.
  • CSOs should work together to harmonize their efforts and to create greater impact.
  • Government should bring closure to the court case and all issues surrounding the Stubb Creek.

Conclusion

The undersigned commit to utilizing this communique as a media advocacy tool, disseminating information through various channels, engaging duty bearers and community level conversations to further cascade the discussion to bring about relevant changes in policy, practice and behavior.

Signed:

  • HRM. King Wapaebiama David Amakiri, The Obanobhan of Emeyal Clan, Ogbia LGA, Bayelsa State
  • Ibeno Youth Advocacy Network (IYAN)
  • Ibeno Women association
  • Chairman, Ibeno LGA
  • Eket Traditional Rulers
  • Eastern Obolo Community Leader
  • Esit Eket/Frontier HCDT
  • Youth and Environmental Advocacy Center
  • Seplat/Ibeno Host Community Development Trust
  • Civil Society Legislative Advocacy Centre (CISLAC)
  • BudgIT Foundation
  • Connected Development (CODE)
  • STEP/AKGCODA
  • Policy Alert
  • Oxfam in Nigeria
  • Psychomodeling Health and wellness initiative
  • Harmony Earth Empowerment
  • Clement Isong Foundation
  • Life Enhancement and Reformative Network
  • Fringe Voices Development Foundation
  • Eastern Obolo Youth Coalition
  • IFUN HCDT
  • EMOIMEE HCDT