Monarch points out conflict in PIA host community relief

Many are rejoicing that the Petroleum Industry Act (PIA) has resolved the host community crisis in the oil industry, but that is not exactly the case.

Whereas the host communities have been handed 3% of capex (capital operation budget) of each oil company, the clause that has emerged as worrisome is the one that mandates host communities to protect oil facilities, else, the amount lost would be deducted from their Trust allocation.

First, NGOs were crying wolf over this clause, wondering the communities would acquire the capacity to protect oil facilities when soldiers have not succeeded.

Now, monarchs have cried out against this clause. One of them, Felix E. Otuwarikpo, the Eze Igbu Upata 111 of Upata Kingdom in Ahoada East LGA of Rivers State, who was chairman on the occasion of the 2026 Correspondents’ Week of the Rivers State Council of the Nigeria Union of Journalists (NUJ) held at the Hotel Presidential in Port Harcourt Monday, May 18, 2026, wondered how monarchs are expected to play within the PIA.

He made a great revelation, saying one day, his subjects told him a commander sent to lead the security team to protect oil facilities and pipelines in his area asked them to tell their king to allow them tap crude oil for one week. They allegedly promised to settle every group in the community well. The kings said he dismissed such entreaty. He wondered how monarchs or communities were expected to protect oil facilities in such a treacherous situation.

Otuwarikpo however said if they give him 30 policemen alone, that no drop of crude oil would be lost in his area of jurisdiction. That seemed a code. The monarchs know what to do but the machinations of the complex system of operators would not allow them function.

The traditional ruler stated that while section 437 of the PIA provides for a percentage of host communities fund to be used for repair of oil assets in the event of sabotage, oil companies have continued to use security agencies to secure pipelines, leaving out the communities.

He accused insiders in the oil industry of sponsoring pipeline vandalism and oil theft in the region, stating, “Most of the pipeline leakages are deliberate.”

This was a great eye opener.