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Community threatens shutdown of oil firm over unmet demands •Issues 21-day ultimatum

The FrontierThe FrontierApril 10, 2025 2403 Minutes read0

Youths of the Abiala community in Ikpoba Okha Local Government Area, Edo State, have issued a 21-day ultimatum to Elcrest E&P Nigeria Limited, threatening to shut down the company’s operations unless a series of demands are met.

The oil company, which operates the Abiala field, has been accused of neglecting the host community during recent dredging activities—an alleged oversight that has, according to residents, resulted in significant economic losses, reports Nigerian Tribune.

This ultimatum was contained in a protest letter addressed to the Managing Director of Elcrest E&P, signed by Felix Jemigbeyi (President), Difference Emmanuel (Vice President), Touwemi Jorues (PRO 1), and Raphael Tori (PRO 2).

The letter, which was also sent to various security agencies including the Inspector General of Police, the Department of State Services (DSS), and the Army Base Commander in Koko, Warri North LGA, was made available to journalists yesterday in Warri.

“We will no longer tolerate being sidelined,” declared Jemigbeyi. “It is unacceptable that despite our peaceful disposition, our simple requests for job opportunities and fair compensation remain ignored.”

The community’s demands include the allocation of 60% of unskilled and 40% of skilled employment opportunities to Abiala youths, the awarding of all non-technical contracts to indigenous contractors, and fair compensation for landowners affected by Elcrest’s dredging operations.

Difference Emmanuel, Vice President of the youth group, stated: “We are not against the company pursuing its business goals; however, as the host community, we expect to benefit from the resources taken from our land.”

The protest letter expressed disappointment at what was described as Elcrest’s indifference to the community’s plight. “It is shocking that despite multiple communications and clear explanations of our situation, your company has failed to acknowledge our legitimate demands,” the letter read.

The community’s grievances are further inflamed by Elcrest’s troubled past, including a catastrophic explosion in 2020 that led to the suspension of production. Local residents now fear that continued neglect could lead to actions that may disrupt oil production in the Niger Delta.

Eric Omare, legal counsel to the community, reinforced the youth’s position, stating that compliance with the Petroleum Industry Act (PIA) does not absolve Elcrest from its obligations to the community.

“Your obligations under the PIA do not negate the necessity for fair employment practices and community engagement,” he said.

While the company has maintained, in a letter dated 29 January 2025, that it has fulfilled its obligations under the PIA, Omare countered this claim, asserting that Elcrest has yet to establish the Host Community Development Trust as mandated by the Act—thereby undermining its claim of compliance.

He further noted that the PIA does not specifically cover employment and contracting opportunities, which remain central to the community’s demands. In addition, youth representatives have allegedly been excluded from governance structures created by the company, in violation of regulations promoting inclusive development.

“If our requests are not addressed within the stipulated timeframe, we are prepared to take drastic measures against the oil firm,” Jemigbeyi warned.

“This isn’t just about our demands anymore; it’s about our dignity as a community,” he added.

The letter concluded with a clear warning: “We consider your blatant refusal to comply with our simple demands, despite peacefully carrying on your business without any interference from us, as an act of provocation and a slap on us as a community.

“In light of the above, we, the Abiala Community Youth, give you, Elcrest E&P Nigeria Limited, 21 (twenty-one) days from the receipt of this letter to yield to our demands or risk the shutting down of your facilities in our community.”

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