By Newspot Nigeria Staff Writer
The Foundation for Environmental Rights, Advocacy & Development (FENRAD) has called on government agencies, oil companies, and stakeholders to ensure transparency, equity, and genuine community participation in the management of Host Community Development Trust Funds (HCDTFs), as mandated under the Petroleum Industry Act (PIA) 2021.
Speaking at a stakeholder dialogue in Port Harcourt, FENRAD’s Executive Director, Comrade Nelson Nnanna Nwafor, stressed the urgent need for community needs assessments, inclusive trust board structures, and strong monitoring frameworks that prevent political interference or elite capture.
“Budgetary allocations must reflect the real needs of oil-bearing communities,” said Comrade Nwafor, urging that community-based organizations, traditional rulers, youth and women’s groups be fully involved in planning and implementation processes.
FENRAD proposed a comprehensive framework including:
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Transparent board elections representing women, youth, and persons with disabilities;
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Regular audits, public financial disclosures, and community scorecards;
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Townhall meetings and civic education on the rights and responsibilities of host communities;
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Establishment of grievance redress mechanisms trusted by the communities;
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Creation of community monitoring committees to track project delivery;
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Equitable project distribution, especially in marginalized or smaller host communities.
The organization emphasized that strict adherence to the 3% operational expenditure rule for host communities is non-negotiable and urged oil companies to avoid tokenism.
FENRAD also pledged to support capacity-building programs, participatory budgeting, and partnerships with civil society organizations to ensure that the Trust Funds truly deliver development, peace, and justice in oil-producing areas, particularly in the Southeast region.
“We are ready to work with all stakeholders—community members, government agencies, and oil operators—to ensure these funds become a tool for progress and not conflict,” Nwafor affirmed.
📝 FULL STATEMENT:
PRESS RELEASE
FENRAD CALLS FOR TRANSPARENCY, COMMUNITY NEEDS ASSESSMENT, AND STRICT IMPLEMENTATION IN HOST COMMUNITY DEVELOPMENT TRUST FUNDS UNDER THE PIA
Port Harcourt/ Rivers State
17th July 2025
The Foundation for Environmental Rights, Advocacy & Development (FENRAD), an Environmental Rights Advocacy Organization, has called for greater transparency, accountability, and community participation in the implementation of the Host Community Development Trust Funds (HCDTFs) as provided for under the Petroleum Industry Act (PIA), 2021.
As the PIA mandates the creation of HCDTFs to ensure oil-bearing communities benefit directly from petroleum operations, FENRAD urges that budgetary allocations to host communities in the Southeast zone must reflect the real needs and priorities of the people. This can only be achieved through genuine community needs assessments involving traditional institutions, community-based organizations, youth and women’s groups, and other local stakeholders.
Executive Director of FENRAD, Comrade Nelson Nnanna Nwafor, made this intervention during a Stakeholders’ Dialogue on the implementation and community engagement on the Host Community Trust Fund in Port Harcourt. He stressed that implementation must be transparent, with clear reporting and monitoring mechanisms to track how funds are allocated and utilized. There should be no room for political interference or elite capture.
Key Demands from FENRAD:
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Inclusive Representation on Trust Boards
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Ensure community representatives on the Board of Trustees are elected transparently.
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Include women, youth, traditional rulers, and persons with disabilities.
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Rotate leadership roles among segments of the host communities.
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Community Needs Assessment and Participatory Planning
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Conduct periodic assessments to identify development priorities.
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Involve CBOs, religious groups, women, and youth associations in planning.
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Capacity Building and Civic Education
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Train community members in financial literacy and governance.
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Raise awareness of PIA provisions, rights, and responsibilities.
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Transparency and Access to Information
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Disclose all financial flows, conduct independent audits, and publish annual budgets.
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Use town halls, radio, and notice boards for communication.
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Grievance Redress Mechanisms
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Create accessible, trusted grievance channels to address mismanagement complaints.
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Ensure mechanisms are culturally appropriate.
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Monitoring and Evaluation by the Community
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Set up Community Project Monitoring Committees.
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Partner with CSOs for independent social audits.
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Coordinate with local governments and development groups.
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Ensure Equity in Project Distribution
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Use transparent formulas to distribute projects and funds fairly, especially to smaller or marginalized communities.
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FENRAD emphasized the need for serious integration of capacity-building for participatory budgeting and monitoring to foster ownership by the host communities.
“FENRAD is committed to ensuring all stakeholders optimize the use of Host Community Trust Fund resources for the benefit of host communities,” said Comrade Nwafor.
Signed
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COMRADE NELSON NNANNA NWAFOR
Environmental Rights Advocate & Human Rights Defender
Executive Director
FOUNDATION FOR ENVIRONMENTAL RIGHTS, ADVOCACY & DEVELOPMENT (FENRAD-NIGERIA)
🏢 HEAD OFFICE:
Plot 44, St. Michael Road by Mosque Street, 4th Floor, Front Aba, Abia State, Nigeria
🏢 SOUTHEAST REGIONAL OFFICE:
Plot 11/12 Ezillo Avenue, Independence Layout, Enugu, Enugu State
🏢 NATIONAL ADVOCACY OFFICE:
Plot 9, Lumsar Street, Abacha Estate, Behind Sheraton Hotel, Zone 4, Wuse, Abuja
📞 TEL/WHATSAPP: 08033383708 | 07062949232
📧 Emails: [email protected] | [email protected] | [email protected]
🌐 Website: www.fenrad.org.ng
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