FG Charges Oil Firms on CSR, Pledges Fairness in Host Community Disputes
By Patience Ikpeme
The federal government has charged oil companies to show greater commitment to corporate social responsibility (CSR) in their host communities, in line with the provisions of the Petroleum Industry Act (PIA).
This charge was issued by the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bello Shehu, during a meeting in Abuja on Friday, September 12, 2025.
The meeting, which was a mediation between Sterling Oil Exploration & Energy Production Company (SEEPCO), Orient Petroleum, and their host communities in Anambra state, was convened following allegations of neglect by the communities.
According to a statement from RMAFC’s Head of Information, Maryam Umar Yusuf, Dr. Shehu said that the commission is committed to ensuring that oil companies meet their obligations. He assured all parties of the commission’s impartiality in the matter.
“This Commission will always stand for transparency and fairness. We expect oil companies to meet their obligations to the people in whose communities they operate,” he said.
Honourable Ekene Enefe, the Chairman of the Investment Monitoring Committee (IMC) at RMAFC, later presided over the meeting and expressed displeasure with SEEPCO’s performance in meeting its community development expectations.
“Based on the facts before us with regard to CSR, what we see here is not satisfactory. SEEPCO still has a lot of jobs to do, and we would like to see real projects on the ground — roads, schools, hospitals, electricity, and jobs for the people in the host communities. This is the result we expect from the deductions made from operational costs,” he said.
The IMC Chairman also directed SEEPCO to provide audited reports of its 3% host community expenditure and stated that the commission would conduct an oversight visit to verify compliance. “We would like to tally the projects executed with the reported deductions. Our committee will not hesitate to exercise its oversight function to ensure that host communities benefit as the law demands,” Hon. Enefe stated.
Speaking for the host communities of Ogwu Ikpele and Ogwu Aniocha, Mr. Esumai Patrick lamented years of neglect and unfulfilled promises. He stated, “Our people live without good roads, schools, or hospitals while companies drill oil on our land.” He added that while the communities welcome investment, they simply ask for fairness. “We want to see electricity, jobs for our youths, and real development projects that will touch lives in our communities,” Mr. Patrick said.
In response, Barr. Emmanuel Ajang, representing SEEPCO, assured the commission that the company had begun implementing its Host Community Development Trust and that projects would soon be executed in line with the PIA.
Engr. Ayke Akuwezumba, representing Orient Petroleum, disclosed that the company had redirected its operations toward gas production through a new partnership with Cottonwooden Gas Refinery. “We are channeling our resources to compressed natural gas (CNG) and liquefied petroleum gas (LPG) production, which will serve industries and households in the region. This is a sustainable plan with long-term benefits for the economy,” he said.
Mr. Enorense Amadasu, Executive Commissioner, Development and Production at the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), assured the gathering that the regulator was closely monitoring the companies. “We are reconciling their metering systems and ensuring that statutory obligations to the Federation are met. Community development projects under the Host Community Trust are also being tracked to guarantee compliance,” he said.
Other RMAFC Commissioners present at the meeting included Hon. Hauwa Umar Aliyu (Jigawa State), Hon. Ntufam Eyo-Nsa (Cross River State), Hon. Abdulazeez Idris King (Kogi State), Hon. Desmond Akawor (Rivers State), Hon. Nathaniel Adojutelegan (Ondo State), Hon. Ibrahim Saad Bello (Plateau State), and Hon. Aruviere Egharhevwa (Delta State). They collectively called for accurate crude production reporting and proper accountability in community development.
