The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has established 155 Host Community Development Trusts (HCDTs) throughout oil-producing areas in the Niger Delta, as a key component of the Petroleum Industry Act (PIA) implementation.
Mrs. Oritsemeyiwa Eyesan, the Commission's Chief Executive, made this announcement during a town hall meeting with host community development trusts and settlors in Rivers State, which took place at Voyage Hotel in Port Harcourt.
Represented by Success Ikpe, an Assistant Director at the Commission, Eyesan noted that NUPRC has initiated a digital system named HostComply to monitor HCDT activities and ensure compliance with PIA regulations.
According to her, since the PIA's rollout, the Commission has facilitated the establishment of over 155 HCDTs, has financed over 79 trusts through the mandatory three percent operational expenditure (OPEX) contributions from settlors, and has monitored approximately 663 ongoing projects aimed at enhancing infrastructure and living conditions in host communities.
Despite these advancements, Eyesan recognized ongoing challenges, such as governance and accountability issues surrounding the management of HCDT funds, delays in project implementation due to bureaucratic hurdles, and community complaints about representation and resource distribution.
To tackle these problems, she suggested enhancing governance structures, maximizing the use of the HostComply platform, and enforcing rigorous transparency and accountability measures.
"The success of HCDTs relies on a collective commitment from all stakeholders — government, traditional leaders, oil companies, and the communities themselves," she affirmed, reiterating the Commission’s commitment to regulatory supervision, policy support, and technical assistance to promote sustainable growth in host areas.
In a related development, Dr. Benjamin Tamaranebi, the National President of Host Communities of Nigeria Producing Oil and Gas, called on state governors to allocate a portion of the 13 percent oil derivation fund received from the Federal Government to host communities.
Tamaranebi condemned the politicization of the derivation fund by state authorities, asserting that these funds are intended to foster the development of oil-producing regions.
"The 13 percent derivation is crucial and vital for the livelihoods of host communities. With the PIA in place, we urge state governments to respectfully transfer part of the derivation to the Trusts to bolster their initiatives," he stated.
He also revealed that the NUPRC has set up a dispute resolution centre in Yenagoa, Bayelsa State, encouraging communities with grievances against oil firms to take advantage of this service.
However, Tamaranebi expressed concerns about some HCDT committees attempting to surpass the statutory five percent administrative cost limit established by the PIA, which allocates 75 percent of funds for community development projects, 20 percent for investments, and five percent for administrative costs.
"If we interfere with the 75 percent designated for development, we hinder our progress," he cautioned.
In support of the efforts, James Ugochindu, the Permanent Secretary of the Rivers State Ministry of Energy and Natural Resources, praised the NUPRC and Hostcom Projects Management and Advisory Konsult Ltd for organizing the engagement, highlighting its alignment with the state government’s goal of equitable development among communities.
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