NUPRC Raises Alarm Over Illegal Oil Activities in South East, South South
- NUPRC has expressed concern over ongoing illegal oil exploration in parts of southern Nigeria
- The commission says the activities have reduced funds available for host community development
- It noted that a past deadly incident in Imo State was cited as a warning against illegal oil exploration
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) has raised concerns over the continued involvement of some host community residents in illegal oil exploration activities in parts of the South East and South South regions, The Sun reported.
Source: UGC
The commission’s chief executive officer, Oritsemeyiwa Eyesan, made this known during a town hall meeting organised by the NUPRC in collaboration with HostCom Project Management and Adversary Konsult Ltd for members of the Host Communities Development Trusts (HCDTs) and settlors from Imo and Abia states in Owerri.
According to Eyesan, who was represented at the event by Atama Daniel, illegal oil activities have created major challenges for the commission and have also reduced funds available for development projects in oil-producing communities.
NUPRC boss: Illegal oil exploration claims over 200 lives in Imo
She recalled a past incident at Abacheke, Mmahu, in Ohaji/Egbema Local Government Area of Imo State, where more than 200 people reportedly lost their lives while engaging in illegal oil exploration in a forested area.
Atama said repeated efforts to stop such activities have not fully succeeded, noting that community engagement remains critical to addressing the problem. He added that some individuals involved are now armed, but stressed that the commission remains committed to tackling the issue.
“This is a serious challenge. We have tried to stop them, but they often return. The problem lies within the communities, and they must help address it,” he said.
NUPRC explains PIA to host communities
During the engagement, Atama also explained the provisions of Chapter Three of the Petroleum Industry Act (PIA) 2021, which establishes the Host Communities Development Trusts. He said oil companies are legally required to set up HCDTs and contribute three per cent of their annual operating expenditure to support host community development.
According to him, the funds are meant for projects in areas such as education, healthcare, infrastructure and economic empowerment, as determined by the host communities themselves. He added that the trusts are to be managed by community-nominated boards of trustees, alongside management and advisory committees, to ensure transparency and accountability.
Source: Getty Images
Earlier in his remarks, the national chairman of the Host Communities of Nigeria Producing Oil and Gas (HOSTCOM), Dr Benjamin Tamarenebi, urged host communities to prioritise sustainable and impactful projects.
Tamarenebi said funds currently available to host communities are higher than in the past and encouraged beneficiaries to invest in long-term development initiatives such as schools, skills training and scholarships, rather than spending on non-essential projects.
Nigeria earns N55.5 trillion from crude oil sales
Legit.ng earlier reported that Nigeria generated an estimated N55.5 trillion from crude oil sales in 2025, based on official production figures from the NUPRC and crude price data published by the CBN.
The estimate represents an increase from the N50.88 trillion recorded in 2024, reflecting higher crude output and relatively supportive oil prices during the year.
According to data released by the NUPRC, Nigeria produced a total of 530.41 million barrels of crude oil between January and December 2025.
Source: Legit.ng
