CSO urges the House Committee to review the provisions of HCDT

Civil society organizations have secured commitments from the House Committees on Environment and Host Communities to review the gray provisions of the Host Community Development Trusts (HCDT) and ensure accountability, transparency and fairness in the oil industry’s divestment processes.

In a major victory for civil society, the Stakeholder Democracy Network (SDN) has secured key commitments from lawmakers to address long-standing issues in the oil and gas industry’s divestment processes and the implementation of HCDTs.

The commitments were made during a two-day retreat and training session organized by SDN for members of the House Committees on Environment and Host Communities, held in Uyo, the Akwa Ibom State capital.

According to a communiqué issued after the event, House committees agreed to take several actions to improve transparency, accountability and fairness in the sector:

The communiqué reads: “A motion will be made to halt ongoing divestments pending an investigation into recent deals to ensure they are in line with best practice. The committees will propose to amend the Petroleum Industry Act (PIA) to include provisions supporting transparent divestments, with technical support from SDN. The Committees will recommend the integration of SDN’s proposed “National Principles for the Responsible Divestiture of the Oil Industry” into the regulatory framework.”

In her opening remarks, SDN Country Director, Florence Ibokabasi Kayemba, emphasized the importance of the withdrawal, noting that the disinvestment of onshore oil and gas facilities and the establishment of HCDTs are among the recent developments in the sector that require urgent attention.

“The divestment of onshore oil and gas facilities has been ongoing in recent years, and Shell’s recent announcement of their intended sale of SPDC came as a major surprise due to ongoing and unresolved environmental and corporate social responsibility issues in the Niger Delta. ”, said Kayemba.