Delta State Oil Communities Demand Compliance with Development Obligation
Residents of oil-rich communities in Delta State are urging government agencies, particularly the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), to enforce compliance by the asset management team and Sterling Global Oil, the operator of OML 26. These communities insist that the companies fulfill their 3% Operating Expenditure (OPEX) Host Community Development Trust (HCDT) obligations promptly or face potential operational shutdowns.
Representatives from the Isoko Grassroots Campaigners, led by coordinators Mr. Elele Okpako and Ms. Angela Akpofa, highlighted the clear stipulations of Chapter 3 of the Petroleum Industry Act (PIA) regarding the responsibilities of operating companies towards their host communities. They stated that 3% of the settlor’s annual OPEX is designated for community development initiatives through the HCDT.
The group emphasized that while the asset management team and Sterling Global Oil, in collaboration with NNPC Exploration and Production Limited (NEPL), have delayed implementation of the PIA, the Delta State host communities are unwilling to wait any longer. They express their determination to take control of their future.
Despite this urgency, the communities allege that Sterling Global Oil has made minimal remittances to the HCDT, in contrast to the expectations set forth by the PIA. In October 2025, nearly two years after the HCDT’s establishment, the remittance fell short by approximately N2.4 billion.
The Board of Trustees (BOT) alerted stakeholders to this financial discrepancy in November 2025. However, the company’s response was inadequate, culminating in a virtual meeting on December 22, 2025, which yielded no tangible solutions despite previous assurances of responsiveness.
The situation escalated when a petition was lodged with the NUPRC in January 2026, leading to a tripartite meeting on April 15, 2026. During this meeting, NEPL representatives explained that the budget shortfall was allegedly allocated to special intervention projects, in direct contradiction to the provisions of the PIA and the Global Memorandum of Understanding (GMoU).
While the PIA allows for a one-year transition, this period is set to conclude in August 2022. Stakeholders from the Isoko Grassroots Movement voiced growing concerns that the Asset Management Team (AMT) led by Sterling Global Oil is mismanaging funds and obstructing necessary community development. They acknowledged ongoing efforts by the BOT to address these issues but noted that the lack of adequate funding continues to hinder progress.
Previous attempts to address these concerns, including a security meeting held by Isoko Northern Council Chairman Mr. Godwin Ogorgba, have proven futile. The communities have been deprived of basic necessities like electricity for years, and they feel that funds designated for projects under OML 26’s HCDT have been misappropriated or inadequately utilized.
The Isoko Grassroots Mobilizers expressed disappointment at the apparent indifference shown by the asset management team and Sterling Global Oil in developing their community. Allegations have surfaced that the company is misrepresenting adjustments to OPEX and failing to allocate necessary funds for development as mandated by the PIA.
While a tripartite meeting facilitated by the NUPRC aimed to resolve these issues, it concluded without actionable outcomes. The only directive given was for NEPL to provide documented evidence of special intervention projects funded by the budget shortfall within two weeks.
The grassroots campaigners have voiced dissatisfaction with the claims of special projects and are calling for immediate corrective action from the NUPRC to ensure that the asset management team and Sterling Global Oil remit the owed payments to the HCDT. They stress that OML 26 has fallen significantly behind in infrastructure development in the Niger Delta and that no projects have commenced since the BOT’s inception in February 2024.
With mounting frustration, the communities contend that the promised benefits of oil exploration have been overshadowed by inadequate responses from the asset management team and NEPL. They are prepared to take collective action to challenge this ongoing injustice, firmly stating that they will no longer tolerate economic repression and neglect. The oil community asserts that enough is enough, and they demand accountability and development as a matter of urgency.
