THE CHALLENGES OF HOST COMMUNITIES IN THE MANAGEMENT OF ‘DEVELOPMENT TRUST’ ESTABLISHED UNDER THE NIGERIAN PETROLEUM INDUSTRY ACT 2021

Abstract

The relationship between petroleum host communities and Nigeria's oil and gas industry has been defined by enduring tensions, problems associated with environmental degradation, and struggles for equitable benefit-sharing. Host communities in the Niger Delta bear the full social and environmental costs of petroleum extraction while historically receiving minimal direct benefits, a paradox that has fueled decades of agitation evolving from peaceful petitions to organized social movements and armed militancy. This article traces that historical trajectory, examines the institutional responses through intervention agencies, critically evaluates the Global Memorandum of Understanding (GMOU) model as a corporate social responsibility innovation, and analyses the Host Communities Development Trust framework introduced by the Petroleum Industry Act 2021 as the most comprehensive legislative response to community grievances. The article further situates Nigeria's approach within a comparative framework drawing on the experiences of Norway, Brazil, Alaska, Canada, the United Arab Emirates, Indonesia, Angola, and Ghana. The authors argued that while the Host Communities Development Trust represented a significant normative advancement. The paper therefore concluded that the success of the development trust depends on transparent implementation, genuine community empowerment, robust regulatory oversight, and sustained political commitment to avoiding the corruption and elite capture that undermined previous interventions.