INTRODUCTION
The host community development provisions in the Petroleum
Industry Act 2021 (PIA) remain a focal topic of
discourse amongst stakeholders in the Nigerian oil and gas
industry. The reason for this is not farfetched as prior to the
PIA, there were no laws imposing community development obligations
on oil and gas companies.1
Prior to the enactment of the PIA, although not statutorily
required to do so, oil and gas companies addressed the development
of host communities through the instrumentality of Global
Memorandum of Understanding (GMOU), Offshore Memorandum of
Understanding (OMOU) and other means of collaboration with host
communities. The GMOUs and OMOUs were typically entered into
between the oil and gas company, the host communities (represented
by appointed representatives) and the relevant state government. By
the GMOUs and OMOUs, the companies inter alia will
undertake to either provide or fund certain developmental
activities and projects for