NUPRC enforces 3% oil levy, registers 172 community devt trusts

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has registered 172 Host Communities Development Trusts (HCDTs) established by oil and gas companies under the Petroleum Industry Act (PIA). This development follows the regulator's efforts to enforce the PIA provision that requires oil and gas companies, known as settlors, to contribute three per cent of their operating expenditure from the previous financial year to HCDTs.

NUPRC Chief Executive, Oritsemeyiwa Eyesan, revealed this during a meeting with the Revenue Mobilisation Allocation and Fiscal Commission in Abuja, where they discussed the implementation of PIA provisions, specifically those related to host communities and settor obligations. The meeting came in the wake of the Fiscal Commission's directive to dissolve a disputed HCDT within 48 hours due to concerns over its constitution and representation of affected oil-producing communities.

Eyesan emphasized that the NUPRC has established procedures and regulations to ensure proper trust constitution and settlor financial compliance, having registered 172 HCDTs so far.

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