ISOKO, DELTA — Oil-producing communities in Delta State have demanded the payment of an alleged ₦2.4 billion shortfall in Host Community Development Trust (HCDT) funds tied to OML 26, warning that failure to act could lead to a shutdown of oil operations in the area.
The demand was reiterated on Tuesday, April 21, 2026, at approximately 2:40 p.m., during a stakeholders’ engagement involving community representatives under the Isoko Grassroots Mobilisers, where concerns over unpaid statutory contributions were raised.
The communities called on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to urgently intervene in what they described as a failure by operators to fully remit the required 3 percent of annual Operating Expenditure (OPEX) as mandated by the Petroleum Industry Act (PIA).
They also urged the Asset Management Team and Sterling Global Oil, operators of OML 26, to meet their obligations without further delay, warning that continued non-compliance could disrupt oil production activities in the region.
According to the group, the HCDT linked to OML 26 was inaugurated in February 2024, but only a partial remittance was made in October 2025, leaving an outstanding balance estimated at ₦2.4 billion.
Community leaders disclosed that the Board of Trustees flagged the discrepancy as far back as November 2025, but efforts to resolve the issue have yielded no meaningful outcome.
They noted that a virtual meeting held in December 2025 failed to reach an agreement, prompting the submission of a formal petition to the NUPRC in January 2026.
The petition led to a tripartite meeting held on April 15, 2026, in Abuja, involving representatives of the Nigerian Exploration and Production Limited (NEPL), the Asset Management Team, and the HCDT Board.
At the meeting, the operator reportedly attributed the funding shortfall to “special intervention projects,” a justification strongly rejected by the communities, who insist it contradicts the provisions of the Petroleum Industry Act.
The stakeholders expressed further concern that despite multiple engagements and earlier discussions, including on security issues in Isoko North, there has been no visible development project executed since the HCDT’s inauguration.
They warned that the continued delay in fulfilling financial obligations and implementing development initiatives could force communities to mobilise and halt oil operations within the OML 26 axis.
Analysts say disputes over HCDT funding could pose significant risks to oil production if not addressed promptly, especially as host community relations remain a critical factor in sustaining operations in the Niger Delta.
As tensions rise, stakeholders are calling for swift regulatory intervention to resolve the dispute and prevent disruptions that could impact both local livelihoods and national oil output.
