The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has confirmed that 172 Host Communities Development Trusts (HCDTs) have been incorporated by oil and gas companies, marking significant progress in implementing the Petroleum Industry Act (PIA).
NUPRC Chief Executive Officer Eyesan disclosed this while addressing the leadership of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja. Under the PIA, oil and gas companies (settlors) must contribute 3 per cent of their preceding financial year’s Operating Expenditure (OPEX) to a Host Communities Trust Fund for the benefit of host communities.
“We have laid out procedures for doing things and we have put regulations in place to streamline the process. So far, we have registered 172 HCDTs and we have been able to manage contributions by settlors,” Eyesan said.
She explained that the trusts have funded the construction of schools, hospitals and other infrastructure, contributing to peace and stability in previously volatile communities and supporting an increase in oil production.
While acknowledging that some HCDTs have faced litigation over the composition of their Boards of Trustees, Eyesan stated that the NUPRC has been working to ensure smooth operations. She noted that the Commission’s Alternative Dispute Resolution Centre has played a key role in resolving grievances.
Eyesan emphasised that oversight of how the funds are managed remains the exclusive preserve of the NUPRC. She also pledged to investigate a lingering disagreement between Sterling Oil Exploration and Energy Production Company (SEEPCO) and its host community in Anambra State.
RMAFC Chairman Dr. Mohammed Bello Shehu commended the NUPRC for reforms that have supported growth in upstream production. He noted that the sector accounts for a large share of revenues into the Federation Account and called for stronger collaboration between the two institutions.
The engagement underscores ongoing efforts to ensure host communities benefit directly from oil and gas operations while promoting stability in the sector.
