Residents of Omoku in Rivers State face a return to paid electricity supply after Oando Energy Resources Nigeria Limited (OERNL) formally ended decades of free power provided under a legacy agreement by the Nigerian Agip Oil Company (NAOC).
In a letter dated October 30, 2025, Oando informed the Omoku City Council of Traditional Rulers and Chiefs that it would no longer handle routine maintenance of the community’s electricity network, following the expiration of a transition period stipulated under the Petroleum Industry Act (PIA) 2021.
The company’s correspondence, referenced SCO/SXD/PHCOM/33012/2025 and signed by Mr Solomon Agba, General Manager, Base and District Management, said the decision complies with Section 316(1) of the PIA, which transfers management of community projects to Host Communities Development Trusts (HCDTs), reports The Guardian.
“Following the lapse of the stipulated deadline, Oando Energy Resources Nigeria Limited will no longer assume responsibility for the routine maintenance of the Omoku community electrification network,” the letter read.
“The responsibility now rests fully with the Ogba Host Communities Development Trust (Ogba HCDT).”
The move formally concludes an arrangement that for over 30 years provided Omoku residents with uninterrupted, company-funded electricity.
The free power supply, introduced as part of NAOC’s Corporate Social Responsibility (CSR) programme, supported homes, small businesses, schools, and hospitals across Ogba/Egbema/Ndoni Local Government Area.
Oando’s acquisition of NAOC’s Nigerian operations, completed in early 2025, included oil mining leases, gas infrastructure, and community projects across the Niger Delta.
The takeover, seen as a milestone for indigenous participation in the oil sector, has nonetheless prompted unease among host communities now adjusting to new management structures and fiscal responsibilities.
Under the PIA, oil firms operating in Nigeria must allocate three per cent of their annual operating expenditure to the HCDTs for host community development.
The scheme aims to improve transparency and community ownership of projects, replacing direct company control with locally governed trusts.
In practice, however, the transition has presented challenges.
Residents of Omoku say the new arrangement could leave them without reliable electricity, as the Ogba HCDT is still building administrative capacity and has limited technical resources to manage power infrastructure.
The Nigerian Electricity Regulatory Commission (NERC) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), both copied in Oando’s letter, have not issued formal responses.
Residents expect to be migrated to the Port Harcourt Electricity Distribution Company (PHEDC) for metered supply, a process that could raise costs for households and small businesses.
Oando said it remains committed to fostering long-term partnerships with host communities in line with the objectives of the PIA.
“We appreciate the cooperation of our host communities and reaffirm our support for sustainable development through the HCDT structure,” the company said in a follow-up note shared with stakeholders.
The development adds to a growing national debate about the implementation of the Petroleum Industry Act, which has redefined corporate-community relations in Nigeria’s oil-producing regions.
Several host communities in Bayelsa, Delta, and Imo states have also raised concerns over project handovers and the capacity of new trust structures to sustain inherited social services.
