KEY POINTS
- NAPPDRR has asked the Federal Government to increase the statutory three per cent Operating Expenditure (OPEX) allocation to oil host communities to 15 per cent.
- The group says the current allocation is insufficient to address decades of pollution, lost livelihoods and infrastructure deficits in oil-producing areas.
- It wants the National Assembly, Federal Government, NUPRC and international oil companies to initiate an urgent amendment.
- NAPPDRR says increased funding could support healthcare, clean water, infrastructure, youth employment and enterprise development.
- The organisation has also called for the reappointment of the EMOIMEE Host Community Development Trust’s leadership.
MAIN STORY
The Network Advancement Program for Poverty and Disaster Risk Reduction (NAPPDRR) has called on the Federal Government to increase the statutory three per cent Operating Expenditure (OPEX) allocation to oil host communities to 15 per cent, arguing that the existing provision is inadequate to address the scale of environmental and economic challenges in oil-producing areas.
The Founder and Executive Director of NAPPDRR, Emem Edoho, made the appeal in a statement on Monday in Abuja.
He urged the National Assembly, Federal Government, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and international oil companies (IOCs) to initiate an urgent legislative amendment to raise the allocation.
Edoho said the existing three per cent provision could not adequately address more than six decades of oil pollution, environmental degradation, economic disruption and infrastructure deficits in communities across the Niger Delta.
He specifically identified Esit Eket, Eket, Ibeno and Onna Local Government Areas of Akwa Ibom State, citing oil spills, gas flaring, water pollution, declining soil fertility and the loss of aquatic life.
According to him, pollution has damaged traditional sources of income, particularly fishing and farming, without adequate compensation or alternative economic opportunities for affected residents.
He also raised concerns about the health consequences of hydrocarbon emissions, saying pollution had contributed to respiratory diseases, cancers and water-borne illnesses. He argued that the funding required for health insurance, hospitals and potable water exceeded what the existing allocation could provide.
Edoho further said oil-producing communities continued to face poor roads, inadequate schools and coastal protection challenges despite their contribution to Nigeria’s foreign earnings.
He maintained that increasing the allocation would provide more resources for job creation, skills acquisition and business support for young people, helping to reduce youth restiveness and protect uninterrupted oil production.
NAPPDRR also commended the Eket, Mkpat Enin, Onna, Ikot-Abasi, Mbo, Esit-Eket and Eastern Obolo (EMOIMEE) Host Community Development Trust, which oversees development projects funded by oil and gas operations across seven host communities in Akwa Ibom.
Edoho said the trust had demonstrated transparency, accountability and inclusiveness in managing the existing three per cent allocation.
He credited its Board of Trustees and Management Committee with directing funds towards community development projects through stakeholder engagement, needs assessments and people-oriented interventions under the Petroleum Industry Act 2021.
He called for the reappointment of the trust’s leadership to allow it to continue ongoing projects and consolidate its achievements.
THE ISSUES
The demand highlights the tension between the statutory funding available to oil host communities and the scale of the environmental, health and infrastructure problems they face.
For communities affected by oil operations, the consequences extend beyond pollution. Damage to fishing grounds and farmland can weaken household incomes, while unsafe water and health risks create additional costs for residents and local authorities.
The proposed increase from three per cent to 15 per cent would significantly raise the share of operating expenditure directed towards host community development. However, implementing the demand would require the legislative amendment sought by NAPPDRR.
The group also argues that better-funded community development could help reduce tensions between host communities and oil operators. Its position is that investment in livelihoods, infrastructure and youth opportunities would support stability in areas where oil production takes place.
WHAT’S BEING SAID
“The three per cent provision is grossly inadequate to remediate over six decades of oil spillage, gas flaring, water pollution, soil infertility and loss of aquatic life in Esit Eket, Eket, Ibeno and Onna Local Government Areas of Akwa-Ibom.” – Emem Edoho, Founder and Executive Director, NAPPDRR.
“Decades of hydrocarbon pollution have triggered a public health crisis, with rising cases of respiratory diseases, cancers and water-borne diseases. The fund needed for health insurance, hospitals and potable water far exceeds three per cent.” – Emem Edoho, Founder and Executive Director, NAPPDRR.
“Increasing the fund to 15 per cent is not a favour, but justice, equity and environmental reparation.” – Emem Edoho, Founder and Executive Director, NAPPDRR.
WHAT’S NEXT
NAPPDRR wants the Federal Government, National Assembly, NUPRC and international oil companies to begin the process of amending the relevant legislation to raise the allocation.
It has also called for the reappointment of the EMOIMEE Host Community Development Trust’s Board of Trustees and Management Committee to sustain ongoing development projects.
The statement did not provide a proposed timeline for the legislative amendment or details of how the additional allocation would be distributed if the demand is approved.
BOTTOM LINE
NAPPDRR’s proposal would increase the statutory OPEX allocation to oil host communities from three per cent to 15 per cent. The demand puts renewed focus on how much funding reaches communities bearing the environmental and economic costs of oil production, and whether existing provisions are sufficient to address their development needs.
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