The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says 172 Host Communities Development Trusts (HCDTs) have so far been incorporated by oil and gas companies under provisions of the Petroleum Industry Act.
This was made known by the NUPRC Chief Executive, Oritsemeyiwa Eyesan, during a visit to the leadership of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja, where she outlined the commission’s efforts to enforce the Act’s provisions on host communities and the obligations of operating companies.
Under the law, oil and gas companies, referred to as settlors, are required to contribute 3 percent of their preceding year’s Operating Expenditure into a Host Communities Trust Fund for the benefit of their 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 noted that the trusts have funded schools, hospitals and other infrastructure, contributing significantly to peace and stability in previously volatile communities and, in turn, boosting oil production.
While acknowledging that some HCDTs have faced litigation over disagreements on the constitution of their Boards of Trustees, Eyesan said the NUPRC has worked diligently to ensure they function smoothly, with the commission’s Alternative Dispute Resolution Center playing a key role in resolving such grievances.
Eyesan, in a statement on Sunday by the NUPRC’s Head of Media and Corporate Communications, Eniola Akinkuotu, commended the RMAFC’s interest in host community affairs but clarified that oversight of how the funds are managed remains the exclusive responsibility of the NUPRC.
She also pledged to investigate the ongoing dispute between Sterling Oil Exploration and Energy Production Company (SEEPCO) and its host community in Anambra State.
Responding, RMAFC Chairman Dr. Mohammed Bello Shehu commended the NUPRC for driving reforms in the oil and gas sector that have supported production growth, noting that the commission views the upstream sector as critical given its substantial contribution to the Federation Account.
He thanked the NUPRC leadership for honouring the visit and called for stronger collaboration between the two institutions in the national interest.
