The Myth of Petroleum Industry Act (Pia): A Recipe for Sustainable Development in Host Communities

Abstract

The objective of this research effort is to evaluate the role of the Petroleum Industry Act (PIA) in enhancing sustainable corporate social responsibilities (CSR) in host communities. The Petroleum Industry Act was borne out of genuine curiosity to develop a legal and institutional framework that will safeguard and serve as a shield to all relevant stakeholders in the oil and gas industry. The PIA will provide the leverage for development in the extractive industry and a formidable template in the implementation of corporate social responsibilities in both host and pipeline communities. The challenges inherent in the execution of corporate social responsibilities are the delay in the release of funds for capital projects, lack of a clear-cut dispute resolution mechanism in the Trust, excessive bureaucracy, improper scoping of projects, structural and technical deficiencies, and delay in replacing vacant positions, among others. The researcher used descriptive statistics. It was qualitative research in which vital information was elicited from respondents through personal interviews. The researcher also employed a purposive sampling technique with some BOT members as the population of the study. It was found out that there is no internal dispute resolution mechanism and funds are not promptly released, among other things. It was recommended that each Host Communities Development Trust (HCDT) should have an internal dispute resolution unit within the Trust that can mediate between host communities over disputed facilities. The administrative fund account of the HCDT should be managed and controlled exclusively by only BOT members and not jointly with the settlor, among others.

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