L-R: Isaac Emmanuel, Consultant at CSR-in-Action, Dr. Ogbonnaya Orji, Director General, Nigeria Extractive Industries Transparency Initiative (NEITI), Chinonso Vincent, Business Development Manager at CSR-in-Action, as NEITI endorsed the PIA Implementation Report in Lagos, July 17, 2024
The Petroleum Industry Act (PIA) represents a transformative shift for Nigeria’s oil-bearing host communities, particularly in the Niger Delta. However, the true impact of this legislation hinges on its effective implementation, which must address the unique challenges and needs of these communities.
CSR-in-Action conducted a comprehensive research into the implementation of the PIA, with a particular focus on the inclusion of women and the broader implications for host communities. Our findings highlight the critical importance of gender inclusion and community engagement in ensuring the success of the PIA.
This research has been met with widespread acclaim, including a significant endorsement from the Nigeria Extractive Industries Transparency Initiative (NEITI). NEITI’s Director General, Dr. Ogbonnaya Orji, acknowledged the value of our findings, emphasising their role in shaping a more inclusive and effective implementation strategy for the PIA.
Our report underscores the significance of women’s participation in PIA implementation. Women, who constitute over 50% of the population in oil-producing communities, have historically been marginalised in decision-making processes. However, their inclusion is essential for creating more effective and sustainable outcomes.
For instance, in Akwa Ibom, women’s groups have successfully managed community health projects, leading to significant improvements in maternal and child health. Our research also reveals that communities with active female participation in development initiatives see higher success rates compared to those without such involvement.
Empowering women through education and economic opportunities can significantly boost local economies and improve social outcomes. In Delta State, women’s cooperatives have successfully launched small-scale enterprises, contributing substantially to the local economy. Our research shows that households where women contribute financially experience a higher income growth rate, highlighting the economic impact of women’s empowerment.
Moreover, our study demonstrates that women’s leadership in community and corporate roles correlates with better social outcomes, such as improved health, education, and overall community well-being. In Akwa Ibom, schools with female leadership have shown higher student retention rates, illustrating the positive influence of women in educational leadership.
The PIA’s framework, particularly the Host Communities Development Trust (HCDT), holds great potential for driving sustainable development. However, our research emphasizes the need for transparent governance structures and robust community representation to ensure that funds allocated for development projects genuinely address local needs.
The Act also seeks to address environmental issues through stricter regulations, but our findings suggest that these efforts will only be effective if there are strong enforcement mechanisms in place. Ensuring that oil companies are held accountable for environmental damage and prioritizing remediation efforts are crucial steps toward protecting community health and livelihoods.
Recommendations for Stakeholders
To unlock the full potential of the PIA, we recommend the following actions for key stakeholders, including the Federal Government, Ministry of Petroleum Resources, NNPC, and NMDPRA:
- Establish Inclusive Decision-Making Bodies: Ensure that women constitute at least 30% of committees and decision-making bodies involved in PIA implementation.
- Promote Gender-Sensitive Community Engagement: Develop strategies that actively involve women in community discussions and decision-making processes.
- Support Women’s Entrepreneurship and Economic Empowerment: Provide resources and opportunities for women to launch and scale small businesses in oil-producing communities.
- Monitor and Evaluate Impact: Implement mechanisms to assess the impact of women’s inclusion on PIA outcomes, ensuring that the Act’s benefits are equitably distributed.
Through these steps, Nigeria can foster a more inclusive, sustainable, and prosperous oil and gas industry, transforming the relationship between the sector and its host communities.