Abstract The struggle for the realization of host communities' rights in resource-rich regions has historically been fraught with severer environmental degradation, socioeconomic marginalization, and inadequate legal protections. This article examines the: transition from voluntary corporate social responsibility (CSR) models to statutory institutional frameworks -exemplified by landmark enactments like Chapter Three of the Nigerian Petroleum Industry Act (PIA) 2021. It evaluates the dual nature of these modern mechanisms, analyzing critical bottlenecks such as funding calculation disputes, governance deficits, elite capture, and punitive infrastructure deductions. Conversely, it highlights emerging prospects, including institutional predictability, participatory governance, and alternative dispute resolution (ADR). The paper concludes with targeted legislative and policy recommendations aimed at bridging the gap between statutory compliance and genuine environmental and socioeconomic justice.