NUPRC Sounds Alarm Over Illegal Oil Operations in Southern Nigeria
The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) has issued a stark warning regarding the persistence of illegal oil exploration activities in parts of the South East and South South regions. According to reports from a recent town hall meeting in Owerri, these unlawful operations are significantly impacting the financial resources allocated for community development in oil-producing areas.
Community Development Funds at Risk
During the engagement organized by NUPRC in collaboration with HostCom Project Management and Adversary Konsult Ltd, commission officials revealed that illegal oil activities have created substantial challenges. Oritsemeyiwa Eyesan, the chief executive officer of NUPRC, emphasized through her representative, Atama Daniel, that these operations have directly reduced the funds available for crucial development projects in host communities.
Atama explained that despite repeated efforts to curb these activities, they continue to resurface, with some individuals now reportedly armed. "This is a serious challenge. We have tried to stop them, but they often return. The problem lies within the communities, and they must help address it," he stated, highlighting the critical need for community engagement in resolving the issue.
Deadly Consequences of Illegal Exploration
The commission cited a tragic incident in Abacheke, Mmahu, located in the Ohaji/Egbema Local Government Area of Imo State, where over 200 people lost their lives while engaging in illegal oil exploration in a forested area. This devastating event serves as a grim reminder of the dangers associated with such unlawful activities and underscores the urgency of addressing the problem.
Petroleum Industry Act and Host Community Trusts
During the town hall meeting, which included members of Host Communities Development Trusts (HCDTs) and settlors from Imo and Abia states, Atama detailed the provisions of Chapter Three of the Petroleum Industry Act (PIA) 2021. This legislation mandates oil companies to establish HCDTs and contribute three percent of their annual operating expenditure to support host community development.
These funds are designated for projects in essential areas such as:
- Education infrastructure and scholarships
- Healthcare facilities and services
- Economic empowerment programs
- General community infrastructure
The trusts are to be managed by community-nominated boards of trustees, alongside management and advisory committees, to ensure transparency and accountability in the utilization of resources.
Call for Sustainable Development Initiatives
Dr Benjamin Tamarenebi, the national chairman of the Host Communities of Nigeria Producing Oil and Gas (HOSTCOM), urged host communities to prioritize sustainable and impactful projects. He noted that funds currently available to these communities are higher than in previous years and encouraged beneficiaries to invest in long-term development initiatives rather than non-essential expenditures.
"Funds should be directed toward schools, skills training programs, and scholarship opportunities that will create lasting benefits for community members," Tamarenebi advised during the engagement.
Broader Economic Context
The concerns raised by NUPRC come against the backdrop of Nigeria's significant earnings from crude oil sales. Recent estimates indicate that the country generated approximately N55.5 trillion from crude oil sales in 2025, based on official production figures from NUPRC and crude price data from the Central Bank of Nigeria. This represents an increase from the N50.88 trillion recorded in 2024, reflecting both higher crude output and relatively supportive oil prices during the year.
According to NUPRC data, Nigeria produced a total of 530.41 million barrels of crude oil between January and December 2025, highlighting the substantial economic stakes involved in ensuring legal and regulated operations within the petroleum sector.
