Akata Energy Limited has inaugurated the Ilepete and Ilowo Host Community Development Trusts as part of its commitment to implementing the Petroleum Industry Act while stepping up efforts to attract fresh investment for new drilling activities.
The company, which owns and operates a 100 per cent interest in Petroleum Prospecting Licence 272, said the newly established trusts will serve as a structured platform for delivering the benefits of petroleum operations to host communities through sustainable development programmes.
Speaking during the inauguration ceremony in Abuja, Group Managing Director of Akata Energy, Makoji Aduku, said the milestone followed nearly two years of consultations and regulatory processes required under the Petroleum Industry Act.
He explained that obtaining an operating licence is only one stage of the process, as companies are also expected to complete technical programmes such as data acquisition, asset evaluation, development planning, environmental impact assessments and the establishment of Host Community Development Trusts.
According to Aduku, creating the trusts is an extensive process that takes about nine months. He said it involves carrying out community needs assessments, identifying and validating host communities, securing government recognition and registering the trusts with the Corporate Affairs Commission.
He dismissed suggestions of delays, stressing that Akata Energy had diligently completed every required stage while maintaining a peaceful and productive relationship with its host communities.
Aduku noted that consultants engaged by the company conducted wide ranging consultations and community surveys to identify projects capable of improving the living conditions of residents and meeting their most pressing needs.
While highlighting the progress made with community engagement, he disclosed that the company is now concentrating on raising fresh capital to begin drilling operations. He explained that drilling a single oil well requires between 15 million dollars and 20 million dollars, an investment that remains difficult to source within the local market.
He said the company’s discoveries and prospects have reached the stage where funding is needed to commence drilling, adding that although Nigeria possesses the technical expertise for exploration, access to long term investment capital continues to be a major challenge for indigenous operators.
To bridge the funding gap, Aduku said the company is engaging international investors by showcasing the commercial viability of the project, its operational strength and its capacity to generate returns that will justify the investment.
He also expressed confidence that the changing global investment landscape would not prevent bankable upstream projects from attracting funding. According to him, crude oil remains an important raw material for petrochemicals, natural gas liquids and several industrial products, making commercially sound projects attractive to investors despite growing energy transition policies.
Representing the Nigerian Upstream Petroleum Regulatory Commission, Assistant Director Olatokunbo Karimu urged members of the newly inaugurated trusts to manage community resources responsibly with transparency and accountability.
Karimu said the completed community needs assessments would provide the foundation for the Community Development Plans and advised the trustees to familiarise themselves with the Petroleum Industry Act and the Host Community Development Trust Regulations.
He further directed the trustees to immediately establish their management committees, open the necessary bank accounts and strictly comply with all governance requirements. He warned that any case involving fraud, abuse of office or mismanagement of community resources would attract appropriate legal action.
The Ilowo Host Community Development Trust will be led by Iyapo Folorunsho Nelson, while Ayadi Olabanji Benjamin will chair the Ilepete Host Community Development Trust. Both communities are located in Ondo State.
