Olugboboro community expresses worry over Oando Plc’s decision to halt reclamation project

Residents of Olugboboro community in the Southern Ijaw Local Government Area of Bayelsa State have expressed worries over a recent directive by Oando Plc, ordering the contractor handling the community’s reclamation project to suspend work.

In a formal letter to the Chairman of the Board of Trustees (BOT) of the SILGA 1 Host Communities Development Trust (HCDT), the community leadership, including Chief Ebimobowei Kenbo (Ikpesiwari), Chief Mathew Azeke (Akpokowari), Chief Ayibaini Oweifighe, Chief Layo Tarighebo, Mr. Napoleon Azeke (General Secretary), Mr. Timiundumene Usen (Youth President), and Mr. Andrew Vincent (BOT Member), detailed their grievances.

According to the letter, the contractor, OGBODAWEI Nig Ltd., received a verbal directive via the Board Chairman, Mr. Profit Toyain, that unnamed officials from Oando Plc had instructed that work be stopped immediately on the grounds that the sand-filling project was “not viable.”

The community said that the reclamation project underwent all due processes prior to the contract award. A needs assessment was initially carried out years ago by the precursor to Oando Plc, Agip, in all host communities, where sand filling of the community’s backland was identified as the top priority. 

“During the GMOU era, the community again submitted the reclamation request, though that framework was subsequently replaced by the Petroleum Industry Act (PIA) 2021.

“Under the PIA, another needs assessment was conducted in conjunction with Agip officials, and sand filling was again ranked as the most pressing project. When the Oando SILGA 1 HCDT began operations, host communities were required to submit priority projects; Olugboboro listed five, with the reclamation of the backland ranked first due to its transformative importance.

“The settlor was duly informed and approved the project. Following scoping and a viability review by officials of Oando and SILGA 1 HCDT, the findings were submitted to the settlor and approved. 

“An open bidding process was conducted in May 2026, and the contract was awarded to OGBODAWEI Nig Ltd., with an award letter issued on 29th May 2026.

On 11th June 2026, the SILGA 1 HCDT Project Manager formally handed over the site to the contractor. The contractor mobilized funds, resources, and equipment, commencing work on 17th June 2026. The first milestone, excavation of soil, was successfully completed.

However, work was halted when the settlor directed the Board Chairman to inform the contractor to stop, citing viability concerns.” 

The community noted that the project had already been scaled down from its initial scope of 500m by 100m to 100m by 50m to accommodate available funds.

The Olugboboro leadership emphasised that the reclamation project is not merely a capital project but a strategic environmental restoration initiative. 

The community has been exposed to perennial flooding since its founding, leading to destruction of homes, loss of land, disruption of livelihoods, and constraints on development. 

The sand filling is intended to improve drainage, reclaim land, reduce flood risks, and create an enabling environment for future socio-economic growth.

They further argued that the project aligns with the PIA Act 2021, which establishes the Host Community Development Trust framework to promote sustainable development, environmental stewardship, and socio-economic advancement. The project directly advances these objectives by addressing long-standing environmental challenges and supporting inclusive development.

The community raised key questions regarding how the settlor defines project viability and why this assessment appears to apply only to the Olugboboro project. 

They noted that most other host communities under SILGA 1 HCDT have either completed or are nearing completion of their projects, while theirs has faced delays.

The community also pointed out that they have received no complaints regarding the contractor’s performance, making the stop-work order particularly difficult to understand. 

They expressed concern that the directive undermines the integrity of the approval process and raises questions about equitable treatment across host communities.

Stressing that they will not accept any alternative project, the community reaffirmed that the reclamation remains their cherished legacy project, upon which their future development plans depend. 

They urged the BOT Chairman to intervene, facilitate a review of the decision, and direct Oando Plc to rescind the stop-work order so that the contractor can resume and complete the project.