Oil & Gas

For years, petroleum host districts have demanded budget allocations to participate in oil sector activities, as outlined in Uganda’s petroleum policy. Despite this, the 2025/2026 national budget does not allocate any funding for local government engagement in the sector. The government instead operates through national agencies like the Uganda National Oil Company (UNOC) and the Petroleum Authority of Uganda (PAU), leaving local governments sidelined.

The 2008 National Oil and Gas Policy mandates local governments to participate in designing, monitoring, and implementing oil sector programs, yet they remain excluded financially and operationally. For instance, in Hoima district’s 2025/26 budget, interventions related to petroleum were limited to basic environmental assessments. This continued exclusion threatens to undermine local input and reduce the effectiveness of community engagement in oil development.

Local governments should be integrated into activities like Resettlement Action Plan monitoring, joint environmental oversight, and CSR implementation. Currently, their role is reduced to project launches and grievance management under Resettlement Committees, without meaningful planning or budgeting input. These functions should be included in district budget framework papers to ensure consistent involvement.

Additionally, relying on short-term Community Liaison Officers (CLOs) has failed to create lasting community relationships. When CLO contracts end, responsibility falls back on underfunded and undertrained local officials, such as parish chiefs and community development officers. Petroleum development should be embedded into local government programs like the Parish Development Model to ensure sustainability and real benefits for affected communities.