Odita Sunday 
Host communities in Delta State under Oil Mining Lease (OML) 26 have threatened a major showdown with oil operators over what they described as a ₦2.4 billion shortfall in remittances meant for community development under the Petroleum Industry Act (PIA).
The communities, under the aegis of Isoko Grassroots Mobilizers, said they could no longer tolerate delays by the Asset Management Team led by Sterling Global Oil Exploration and Energy Company, working with the Nigerian National Petroleum Company Exploration and Production Limited (NEPL), in complying with provisions of the PIA.
In a statement signed by Erere Okpako and Angela Akpofa on April 20, 2026, the group said operators failed to remit the statutory three percent of annual operating expenditure (OPEX) to the Host Community Development Trust (HCDT) as required under Chapter 3 of the PIA.
According to them, “the settlor only made a paltry remittance to the HCDT of OML 26 in October 2025, nearly two years after the inauguration of the Trust, and the payment was short by about ₦2.4 billion.”
They said the Board of Trustees (BOT) had raised concerns about the shortfall in November 2025, but the company failed to respond until a virtual meeting held on December 22, 2025, which ended without resolution.
The group further disclosed that a petition was subsequently filed before the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in January 2026, leading to a tripartite meeting on April 15, 2026, in Abuja involving NEPL, the HCDT BOT, and the operators.
“At the meeting, the operator claimed that the shortfall was spent on Special Intervention Projects, which is contrary to the PIA 2021 and the Global Memorandum of Understanding (GMoU) that existed before the Act,” the statement said.
The mobilisers argued that although the PIA allowed a one-year transition period, the window expired in August 2022, making the operators’ justification untenable.
They also alleged that despite engagements involving security stakeholders and the Isoko North Local Government Council chairman, Hon. Godwin Ogorugba, no meaningful progress had been made in resolving the dispute.
The group lamented the lack of basic infrastructure in the host communities, noting that many areas still lack electricity and essential amenities.
“These communities have lived without electricity and other amenities for ages, whereas the funds were meant for project development in OML 26 as stipulated by the PIA,” they said.
They accused the operators of introducing “strange adjustments” to OPEX between 2023 and 2025, which they claimed was not recognised by law and had deprived communities of development funds.
“The HCDT is handicapped in every material particular in the absence of funds for project development,” the statement added.
They also expressed dissatisfaction with the outcome of the April 15 meeting, noting that the NUPRC only directed NEPL to provide documentation of the alleged intervention projects within two weeks.
Calling on the regulator to act decisively, the group urged that the outstanding funds be paid immediately to avert escalation.
“We call on relevant government agencies to prevail on the Asset Management Team and Sterling Global Oil Exploration and Energy Company to resolve the issue and pay all outstanding monies to avert shutdown of operations in OML 26,” they said.
The group warned that failure to act could lead to mass mobilisation and disruption of oil operations in the area.
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