172 Oil Host Community Development Trusts Incorporated So Far, Says NUPRC
Peter Uzoho The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed that 172 Host Communities Development Trusts (HCDTs) have been incorporated by oil and gas companies (settlors) so far. Under
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that 172 Host Communities Development Trusts (HCDTs) have been established by oil and gas companies so far. As per the Petroleum Industry Act (PIA), these companies are required to contribute 3% of their Operating Expenditure (OPEX) from the previous financial year to a Host Community Development Fund for the benefit of those communities.
During a meeting with the leadership of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja, NUPRC Director General, Eyesan, emphasized the enforcement of PIA provisions related to host communities and their corresponding obligations for operating companies. Eniola Akinkuotu, Head of Media and Corporate Communications at the commission, reported that the NUPRC has registered 172 HCDTs, managing settlor contributions effectively.
She highlighted that these funds have supported the construction of schools, hospitals, and other infrastructure, fostering peace and stability in previously unstable communities and boosting production. While acknowledging some HCDTs have experienced litigation over Board of Trustees composition, Eyesan assured that the NUPRC is actively working to ensure their smooth operation, with the Alternative Dispute Resolution Center aiding in resolving grievances.
The NUPRC praised RMAFC for its support of host communities but stressed that the commission retains the sole authority to oversee fund management. The NUPRC boss promised to investigate the ongoing dispute between Sterling Oil Exploration and Energy Production Company (SEEPCO) and its host in Anambra State. Speaking at the meeting, RMAFC Chairman, Dr. Mohammed Bello Shehu, commended the NUPRC for driving sectoral reforms that have increased production, noting the upstream oil and gas sector's significance in contributing to the Federation Account. Shehu urged for closer collaboration between the two institutions for the country's benefit.
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