Victoria Alero TSHOLUWA

Host Communities in oil and gas producing communities in Nigeria have enjoyed very little recognition and legal relevance in the Nigerian Petroleum Industry. This situation has its root partly in inadequate laws on the one hand and the internal wrangling and conflicts that have been ranging among the various identifiable stakeholder groups within the superstructure of the host communities. Against the background of the observed disparity in the socio-economic rights of host communities who should be properly and justly recognized and compensated in oil and gas producing agreements which peripherally recognize them, this study sought to gauge the efficacy of the provisions for such communities in oil producing agreements and thus to provide a legal resolution of the conflict of interest within the host communities. Particularly, the study sought to determine the role and obligations of all stakeholders in oil and gas producing communities, with a bias to host communities, for a peaceful oil and gas operating environment. The study utilized the doctrinal and library-based research methodology and found among other things that the various efforts and attempts by groups advocating community ownership of natural resources are particularly aimed at addressing the socio-economic imbalance, injustice, marginalization, oppression and exploitation of host communities in the oil and gas producing areas in the Niger Delta region. Also that the current legal regime has failed to lay a legislative background to protect the socio-economic interests of local and indigenous stakeholders. In addition, that the absence or near lack of categorical legal pronouncement concerning the respective interests subsumed in oil and gas producing agreements in respect of host communities has left a vacuum and lacuna in the host communities stakeholders question, thus making the use of the term "host communities" susceptible to ruinous arrogation, abuse, oppression, marginalization, power struggle, conflict of interest and political betrayal and subjugation. On the basis of the findings made, the study recommends among other things that going forward, Impact Benefit Agreements (IBAs) should cover issues relating to employment, environmental protection, land use and reclamation, local business development and infrastructural development. Such an arrangement would not only bring about peaceful resources development between the oil companies and the indigenous stakeholders, it will also boost government’s image internationally, because it reflects a strategic balance among interests of the three key stakeholders. Moreover, negotiation should involve all stakeholders and should be based on mutual respect, compromises, authentic goodwill and be fair or equitable. Finally, that an Oil and Gas Host Communities Management Commission should be set up for the specific management and development of the oil and gas host communities in Nigeria. The Commission will, among other issues, ensure that appropriate sharing formula is put in place to determine the percentage or amount that should accrue to the various stakeholders based on the production quantum of oil and gas produced or extracted from their land. x