The Nigeria Extractive Industries Transparency Initiative (NEITI) has urged oil companies operating in Nigeria to prioritise the development of their host communities.

NEITI’s executive secretary, Orji Ogbonnaya Orji, made the call at the official presentation of a policy brief on three per cent operating expenses (OPEX) for host communities on Thursday in Abuja.

The policy brief is titled “Giving Host Communities Their Dues: Revisiting the Three Per Cent OPEX Funding Framework for Host Community Development Trusts in Nigeria.”

The unveiling, organised by the Spaces for Change, a civil society organisation (CSO), had stakeholders from the oil industries and representatives of the host communities in attendance.

Mr Orji emphasised the need for greater corporate commitment to community development.

“It is an honour to address you today on a matter of profound importance to Nigeria’s oil and gas industry.

“And more importantly, to the communities that bear the direct impact of resource extraction—the Host Communities Trust Fund.

“This fund, established under the Petroleum Industry Act (PIA 2021), is designed to enhance the welfare of host communities, ensure sustainable development, and promote peaceful coexistence between industry operators and their host environments,” he said.

Mr Orji said the successful implementation of the initiative required a collective effort involving not only government agencies but also the vital contributions of NEITI and non-state actors, including CSOs, community leaders, and the media.

“The role of NEITI as the national representative of the global Extractive Industries Transparency Initiative plays a crucial role in promoting transparency and accountability in Nigeria’s extractive sector.

“Specifically in the implementation of the Host Communities Trust Fund, NEITI’s role is multifaceted,” said Mr Orji.

According to him, NEITI is mandated to ensure openness in revenue flows and financial transactions, which are pivotal in tracking funds allocated to host communities.

He also urged host communities to play their part by taking ownership of projects in their areas and ensuring their proper maintenance.

Dekor Robinson, chairman of the House Committee on Host Communities in the House of Representatives, pledged continued engagement to ensure the effective utilisation of funds allocated to host communities.

Represented by Clement Jimbo, a fellow committee member in the House of Representatives, Mr Robinson emphasised that the three per cent allocation was not insignificant.

He stressed the importance of host communities taking full control of the funds to achieve their development goals.

In her presentation, Victoria Ibezim-Ohaeri, executive director of Spaces for Change, encouraged companies to engage host communities as partners and emphasised her organisation’s commitment to addressing the identified gaps.

(NAN)