Chief Emmanuel Avworo
By Good luck Egueke
A community leader and Secretary of the Agbon Traditional Council of Chiefs, Chief Emmanuel Avworo, has called on oil-producing communities in the Niger Delta to cooperate with government, security agencies and oil companies to ensure uninterrupted oil production and attract sustainable development. Chief Avworo made the call during an interview with selected journalists in Delta State while speaking on the implementation and benefits of the Petroleum Industry Act (PIA).
He said host communities stand to benefit significantly from the provisions of the PIA, provided they protect oil and gas facilities from vandalism and other activities capable of disrupting production. According to him, the Act formally recognizes oil-bearing host communities where petroleum facilities are located and provides for the establishment of a Host Community Development Trust (HCDT) to drive development in such communities.
He explained that each Trust is governed by a Board of Trustees (BoT), which manages its assets and affairs on behalf of the registered host communities. He added that the governance structure also includes a Management Committee and an Advisory Committee, both comprising representatives of the benefiting communities. Avworo noted that one of the landmark provisions of the PIA is the requirement for every oil company to contribute three per cent of its actual operating expenditure from the previous financial year to fund development projects in host communities through the Host Community Development Trust.
He described the initiative as a major departure from the previous arrangement where oil companies relied mainly on Corporate Social Responsibility (CSR) projects to support host communities. “Before the PIA, oil companies related with host communities mainly through Corporate Social Responsibility (CSR) projects. However, the PIA now guarantees a defined percentage of operational expenditure for community development,” he said.
The Agbon chief observed that oil-bearing communities are still in the early stages of understanding and implementing the provisions of the Act, noting that it is the first time in more than six decades of oil exploration in Nigeria that a legal framework has guaranteed direct funding for host community development. He explained that implementation of the PIA begins with a Development Needs Assessment, through which oil companies identify and prioritize the developmental needs of each host community before executing projects.
According to him, funding allocation is determined by the identified development needs of the communities and, in many cases, their level of oil production. Avworo, however, identified boundary disputes, disagreements over land ownership and conflicts among neighbouring communities as some of the major challenges slowing down the effective implementation of projects and affecting the smooth operation of the Boards of Trustees.
He stressed that one of the greatest benefits of the PIA is the establishment of a clearly defined funding mechanism for community development, unlike in the past when such allocations were uncertain. The traditional leader further explained that communities with higher oil production and peaceful operating environments are more likely to receive greater annual funding for development projects than communities where oil exploration activities are disrupted through pipeline vandalism and other forms of sabotage.
He therefore urged oil-producing communities to work closely with government, security agencies and oil companies to protect critical oil infrastructure and ensure uninterrupted production. Avworo also appealed to oil companies operating in the Niger Delta to reduce gas flaring to the barest minimum in order to protect the environment and safeguard the health and livelihoods of people living in host communities.