The relationship between oil and gas companies and their host communities has long been a subject of legal and operational significance, particularly in resource-rich jurisdictions like Nigeria. As Exploration and Production (E&P) companies navigate the regulatory landscape, they must also manage community expectations, environmental concerns, and the socio-economic impact of their operations. This delicate balance is reinforced by legislative frameworks that impose specific obligations on companies to foster sustainable development in host communities.
In Nigeria, the Petroleum Industry Act (PIA) 2021 has introduced a structured approach to host community engagement, requiring E&P companies to establish Host Community Development Trusts (HCDTs), which is aimed at ensuring direct community benefits. Beyond legal compliance, there is a growing recognition that a proactive and well-executed community development strategy is essential for operational stability, social license to operate, and long-term investment security.