Ford Foundation partners seek development of Nigeria’s oil producing communities

Partners of the Ford Foundation have begun efforts to address issues around Host Community Development Trusts (HCDTs) implementation in Nigeria.

The HCDTs was created by the Nigeria’s Petroleum Industry Act 2021. It is aimed at ensuring development of oil producing communities devastated by exploration of crude oil.

Ford partners

The partners, with support from the Ford Foundation, agreed to a meeting between March 3 and March 9 in Lagos to discuss HCDTs implementation in the country, according to a statement by the group which was forwarded to PREMIUM TIMES on Friday.

The meeting was organized by Spaces for Change, a non-profit human rights organization in Nigeria.

In attendance at the meeting were legislators, representatives from civil society organizations, traditional councils, oil producing communities, regulatory bodies, and oil & gas companies.

According to the statement, the meeting provided a platform for robust dialogue and collaborative problem-solving.

Some participants hailed the introduction of the HCDTs, saying it will serve as channels for directing benefits to communities where oil and gas extraction occurs.

They argued that HCDTs offer greater advantages to host communities compared to earlier models such as the Global Memoranda of Understanding.

However, some participants expressed concerns about various aspects of the implementation process of the HCDTs.

Some of the concerns include flawed selection processes for boards of trustees, ambiguity surrounding the allocation of the 3 percent of operating expenses, power imbalances between corporations and host communities, lack of environmental accountability during divestment, and the absence of independent monitoring and evaluation mechanisms.

On his part, a traditional ruler from Ogoni Traditional Council, Baridam Suani, stressed that there was urgent need for environmental accountability in the implementation of the HCDTs.

“Diversification without environmental accountability is a dangerous activity. Operators should think of the environment first, and take care of responsibilities before leaving the host community permanently,” Mr Suani said.

Other participants emphasized the important role of various actors in ensuring the successful implementation of the HCDTs.

Participants hail groups for support

The participants commended the Ford Foundation for providing resources, supporting capacity building, and connecting local conversations to global discussions on natural resource governance.

They also praised civil society groups for providing capacity building, raising awareness, and advocating for community rights.

They further commended the traditional councils for representing community interests and ensuring transparency while urging the host communities to actively engage in the HCDT process and hold oil companies accountable.

READ ALSO: PIA: Avoiding pitfalls in the host community development trusts, By Tunji Idowu

According to the statement, the meeting ended with a renewed commitment from all participants to work collaboratively towards the effective implementation of the HCDTs in Nigeria.

Meanwhile, the Ford Foundation hinted that it would continue to support local efforts with global conversations on resource governance and climate change.

Officials speak

Speaking at the meeting, Chichi Aniagolu-Okoye, Regional Director of Ford Foundation West Africa, assured grantees of the foundation’s commitment to natural resource and climate change initiatives through the provision of funding for the next five years for civil society actors in the focus areas.

On his part, Martin Abregu, Vice President of International Programs at the Ford Foundation, commended grantees for their key interventions aimed at improving democracy and the extractive sector.

“It is encouraging to see different players sitting around the table to have conversations about interventions in areas of climate change, community rights, community engagement, and community participation to ensure that we build long-term consensus on the kind of development we need for the future,” Mr Abregu stated.