CEPEJ Trains UTREW HCDT (OML 34) on Effective PIA Implementation, Conflict Resolution in Delta
By Ezekiel Kagbala
The Center for Peace and Environmental Justice (CEPEJ) has strengthened the capacity of host community leaders under the UTREW Host Communities Development Trust (HCDT) in Oil Mining Lease (OML) 34, through a two-day intensive workshop focused on the effective implementation of the Petroleum Industry Act (PIA) and conflict resolution mechanisms in Delta State.
The capacity-building workshop, financed by the UTREW HCDT, which commenced on Thursday, December 18, 2025, in Udu Local Government Area, drew participants from several oil-producing communities within OML 34.
Among the Communities with representatives at the programne were Otor-Udu, Eruemukowharien, Okpare-Olomu, Uvwiamuge, Ekakpamre, Effurun-Otor, Umolo-Olomu, Ekrejegbe, Iwhrekan, Edjophe, Oghior, Owhrode, Agbowhiame, Otu-Jeremi, Eyara, among others.
The event was "designed to deepen stakeholders’ understanding of the PIA, clarify the roles and responsibilities of key actors, and promote peaceful coexistence between host communities and oil and gas operators through effective governance of the Host Communities Development Trusts".
During the training, participants were extensively enlightened on the role of the Settlor—defined under the PIA as the oil and gas company operating the asset. Facilitators explained that the Settlor is responsible for the establishment and incorporation of the HCDT, funding it with an amount equivalent to three per cent of its actual annual operating expenditure from the preceding financial year, appointing trustees, and ensuring accountability in line with the law.
Equally highlighted was the pivotal role of the HCDT through its Board of Trustees (BoT), described as the primary vehicle for channeling development benefits to host communities. The BoT’s responsibilities include fund management, project approval and oversight, supervision of management and advisory committees, and statutory reporting to ensure transparency and accountability.
Addressing the participants, the, the National Coordinator of CEPEJ, Chief (Comrade) Mulade Sheriff, PhD, emphasized the need for host communities to fully understand the PIA since its enactment on August 16, 2021.
He described the Act as "a landmark reform in Nigeria’s oil and gas sector" but stressed that its benefits can only be realized through proper interpretation, community awareness, and diligent implementation.
Mulade explained that funds accruing from the PIA are statutory and strictly meant for host community development warning against diversion of such funds for personal interests.
He stressed that "all monies released by oil companies to HCDTs must be applied to visible, impactful, and sustainable projects".
Mulade further advised Boards of Trustees to adopt inclusive leadership, work closely with community stakeholders, establish functional monitoring teams, and uphold transparency, accountability, and unity of purpose in project execution.
In his presentation, the lead trainer, Mr. Samuel Ideh of CEPEJ, noted that the training was structured to simplify the technical components of the PIA for community stakeholders.
He provided detailed insights into the structure, functions, and obligations of the HCDTs and their governing organs.
According to Ideh, the PIA mandates the establishment of HCDTs to ensure that oil and gas revenues are directly invested in sustainable development initiatives within host communities.
He described the trusts as financial stewards responsible for conducting needs assessments, disbursing funds for long-term projects, improving relationships between communities and operators, and promoting accountability.
An interactive session during the workshop allowed the participants to express their concerns on the perceived challenges of PIA implementation at the grassroots, particularly the benefit-sharing matrix among host communities.
Many participants described the matrix as contentious and a recurring source of tension in some areas.
A financial consultant, Mr. Tolu Oyero, stressed the importance of proper record-keeping by HCDTs, saying that accurate documentation is essential for accountability, auditing, and effective financial management of trust funds.
Day one of the workshop ended with a collective call on Settlers for sustained engagement, regular capacity-building programmes, and stronger collaboration among host communities, regulators, and civil society organizations to ensure the PIA delivers tangible and lasting development in oil-producing areas.
Day two focused on conflict resolution in oil and gas host communities, with emphasis on Alternative Dispute Resolution (ADR) mechanisms and the role of HCDTs in preventing and managing disputes. Ejoh Vincent Ohworuah was one of facilitator on importance of monitoring and evaluation.
The sessions underscored the need for dialogue, inclusiveness, and institutional processes to foster peaceful coexistence and uninterrupted petroleum operations.
Chairman of the Board of Trustees of UTREW HCDT, Col. Morris Okoro Ideh Rtd, commended CEPEJ for facilitating the programme and urged participants to effectively apply the knowledge gained.
He specifically encouraged members to study Chapter Three of the PIA, which outlines the rights and obligations of HCDTs, noting that unity among trustees would compel Settlors to fully discharge their responsibilities to host communities.
Edeh also emphasized the need for Settlors to comply with the PIA, particularly in fulfilling their financial obligations to HCDTs and sponsoring training and capacity-building initiatives, describing such commitments as "the surest path to ending confrontations in host communities".
“As for internal issues within the HCDT, members should continue to study the PIA to address them. Communities and Settlors must engage constructively, especially on the issue of the benefit-sharing matrix,” he stated.
Another participant and BoT member, Mr. Otega Orhokpocha Shadrach, affirmed that the training had equipped participants with practical knowledge on dispute resolution and the root causes of conflicts.
He explained that disagreements often arise from the existence of two different benefit-sharing matrices — one introduced by the Settlor and another traditionally used by host communities — each based on different formulas and production considerations.
Shadrach while commending CEPEJ for the initiative, noted however that the two-day training was constrained by limited resources and called on the Settlor operating OML 34 — the Nigerian Petroleum Development Company Limited (NPDC) in joint venture with ND Western Limited — to sponsor and fund regular training programmes as envisaged under the PIA.
He argued that aspects of the PIA require review to better protect host community interests, noting that while penalties exist for non-compliance by Settlors, such sanctions do not adequately compensate or benefit the affected communities.
The workshop ended with renewed commitment by stakeholders to apply the principles of the PIA, strengthen governance of the UTREW HCDT, and pursue peaceful, development-driven engagement in OML 34 host communities.
Highlights of the closing session comprised the presentation of Awards and Certificates to the participants.
