RMAFC Moves To Enforce Oil Host Community Accountability 

The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr Mohammed Bello Shehu, has reaffirmed the Commission’s commitment to protecting the interests of Nigeria’s oil-producing host communities, stressing that RMAFC will continue to strengthen oversight of operators and institutions responsible for ensuring the equitable delivery of benefits from the nation’s natural resources.

Shehu gave the assurance during the investigative hearing of the Commission’s Investment Monitoring Committee into the operations of Sterling Oil Exploration and Energy Production Company (SEEPCO) and the implementation of the Host Community Development Trust (HCDT) provisions of the Petroleum Industry Act (PIA), which took place on Thursday, 6th August 2026 at the new Boardroom of the Commission’s headquarters.

Describing the exercise as an important national service and a critical national responsibility, the Chairman commended the Committee for its diligence and urged members to remain resolute, noting that RMAFC’s constitutional mandate requires firm oversight, transparency and accountability in the management of national revenue assets.

He expressed confidence that the investigation would strengthen trust in the petroleum sector and ensure that host communities receive the full benefits guaranteed under the Petroleum Industry Act.

With the Chairman’s charge setting the tone for the proceedings, the Chairman of the Investment Monitoring Committee and Federal Commissioner representing Anambra State, Dr Ekene Enefe, led an extensive investigative session into SEEPCO’s compliance with the statutory provisions governing Host Community Development Trusts.

Reaffirming the Committee’s resolve to ensure full compliance with the Petroleum Industry Act, Dr Enefe stressed that host communities must no longer bear the environmental and social impacts of oil exploration without corresponding development, declaring that the Commission would vigorously pursue its constitutional mandate to ensure operators and regulatory institutions alike fulfil their obligations to host communities and the Federation.

The Committee expressed strong concern over SEEPCO’s repeated failure to honour invitations to appear before it despite previous engagements. Dr Enefe maintained that the Commission would not tolerate attempts by any operator to evade legitimate oversight.

Addressing the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), he maintained that RMAFC’s constitutional mandate requires it to hold every institution within the petroleum value chain accountable for the effective discharge of its statutory responsibilities.

He consequently directed NUPRC to immediately address concerns surrounding the Host Community Development Trust established for the affected communities, declaring: “We are going to give you 48 hours to dissolve that host community development trust.”

He further condemned SEEPCO’s failure to meet its obligations to host communities and issued a firm ultimatum, stating: “We are going to write them and we are going to give them an ultimatum to pay up what is owed the host communities.”

Dr Enefe added that the Committee would conclude its investigation and forward its findings to the appropriate authorities, emphasising that RMAFC would discharge its constitutional oversight responsibility without fear or favour.

Earlier, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) delegation, led by Mrs Ufondu Ejiro, Director, Host Communities, presented the NUPRC’s position on the implementation of Host Community Development Trusts under the Petroleum Industry Act.

She informed the Committee that the Trust had been duly incorporated, funded and structured in accordance with the law, explaining that NUPRC had received and processed documentation relating to community consultations, governance structures, funding matrices and Community Development Plans.

She also presented records of contributions made into the Trust and maintained that the Commission carries out its responsibilities within the framework established by the Petroleum Industry Act and the Host Community Development Regulations.

Responding on behalf of the affected host communities, Mr Peter Chukwudi, Esq., strongly disputed the submissions made by NUPRC, insisting that the communities neither recognised several of the persons presented as their representatives nor accepted that adequate consultations had taken place before the constitution of the Host Community Development Trust.

He further questioned the level of development recorded in the communities despite years of oil production and urged the Committee to ensure that the concerns of the affected communities were fully investigated.

Also responding to NUPRC, Prof. Charles Ofoegbu, Commissioner for Petroleum and Mineral Resources, Anambra State, called for closer collaboration between NUPRC and the Anambra State Government in verifying community representation and monitoring compliance with statutory obligations.

He urged greater transparency in the computation of statutory contributions, operational expenditure and the execution of community development projects, stressing that the State Government has a responsibility to protect the interests of its oil-producing communities.

Federal Commissioners also contributed extensively to the deliberations. The Federal Commissioner representing Rivers State, Amb. Desmond Akawor, observed that there appeared to be a disconnect between the regulator and the affected state governments, noting that effective oversight would require closer collaboration and direct engagement with operators.

He also expressed concern over SEEPCO’s absence from the hearing and urged all parties to cooperate fully with the Committee’s investigation.

Also speaking, the Federal Commissioner representing Kogi State, Hon. Abdulazeez Idris King, questioned the effectiveness of NUPRC’s verification process, observing that reliance solely on documents submitted by operators may not sufficiently establish that genuine consultations had taken place with host communities before their representatives were recognised.

In her remarks, the Federal Commissioner representing Jigawa State, Hon. Hauwa Umar Aliyu, emphasised the need for regulatory agencies to maintain the highest standards of professionalism and impartiality in the discharge of their statutory responsibilities.

She stressed that regulators must inspire public confidence by ensuring that the interests of host communities receive equal attention alongside those of operators.

Following extensive deliberations and presentations, Dr Enefe assured stakeholders that every submission and documentary evidence presented before the Committee would be subjected to careful examination.

He reiterated that the Investment Monitoring Committee would continue to pursue its constitutional mandate until all relevant facts had been established and appropriate recommendations made in the interest of the Federation and the affected host communities.

Present at the hearing were Federal Commissioners Hon. Aruviere Egharhevwa (Delta State), Hon. Abdullahi Mukhtar Muhammad, MON (Kaduna State), Dr Nathaniel Adojutelegan (Ondo State), and Sen. Marafa Bashir Abba (Taraba State); the Secretary to the Commission, Comrade Tosin Adeyanju; and Mrs Zainab Larai Adamu, Director, Gas and Investment, RMAFC, who serves as Secretary of the Investment Monitoring Committee.

The hearing forms part of RMAFC’s ongoing oversight initiative aimed at strengthening transparency, promoting accountability and ensuring that host communities derive the full benefits guaranteed under the Petroleum Industry Act.