Petroleum Industry Act responsible for crisis in Bayelsa communities — Gov Diri

The Governor of Bayelsa State, Senator Douye Diri, has lamented that the Petroleum Industry Act (PIA) is contributing to the crisis rocking crude oil-producing communities in the state, appealing to the National Assembly to review the PIA and allow state governments to play statutory roles in overseeing development projects in host communities.

Represented by his deputy, Senator Lawrence Ewhrudjakpo, at the 2025 edition of the Nigerian Oil and Gas Opportunities Fair (NOGOF), held at the Local Content Towers in Yenagoa, Diri emphasised the need for reform in the PIA to ensure better management of oil revenues at the community level.

He noted that although the PIA empowers host communities to directly receive oil proceeds, the burden of resolving disputes arising from fund mismanagement often falls on state governments.

“The current PIA does not assign responsibilities to state governments, only liabilities,” he said. “When International Oil Companies (IOCs) bypass the state and engage directly with communities—many of which lack the capacity to manage such investments—it breeds conflict.”

Diri urged the National Assembly to amend the Act to grant host state governments statutory roles in overseeing oil and gas projects. He also criticised IOCs and indigenous oil firms for excluding state governments from recent divestment processes, particularly the exits of Shell Petroleum Development Company and Agip Oil Company.

“Bayelsa State made efforts to acquire shares in these divested assets, given our history of over 70 years of oil operations, but we were overlooked,” he said.

On the theme of this year’s NOGOF, Driving Investment and Production Growth: Shaping a Sustainable Future for Nigeria’s Oil and Gas Industry Through Indigenous Capacity Development, Diri praised the Nigerian Content Development and Monitoring Board (NCDMB) for its vision.

However, he urged the Board to reflect on its past achievements and focus more on building capacity for the youth.

“We must ask: what capacity are we building, and for whom? We need a clear trajectory to move forward,” he stated.

The governor also expressed concerns about Bayelsa’s exclusion from the benefits of the Nigerian Liquefied Natural Gas (NLNG) project, despite the state providing 60% of its feedstock.

Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), described NOGOF as a critical platform for catalysing investment across upstream, midstream, and downstream sectors. He urged participants to go beyond discussions and pursue tangible partnerships and investments.

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Engr. Felix Omatsola Ogbe, Executive Secretary of NCDMB, highlighted the significance of NOGOF 2025, which coincides with the 15th anniversary of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010. He said the event provides a platform for showcasing opportunities and building strategic alliances in the sector.

Ogbe also commended President Bola Tinubu’s ‘Nigeria First’ policy, calling it a forward-thinking step for advancing Nigerian content development.

In her goodwill message, Mrs Olu Verheijen, Special Adviser to the President on Energy, said the federal government is committed to building an energy sector that drives industrialisation and creates sustainable jobs for all Nigerians.

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