172 host community development trusts incorporated – NUPRC

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says 172 Host Communities Development Trusts (HCDTs) have so far been incorporated by oil and gas companies as part of obligations under the Petroleum Industry Act (PIA).

The NUPRC Head, Media and Corporate Communications, Eniola Akinkuotu, disclosed this in a statement on Sunday.

Mr Akinkuotu said the Chief Executive of NUPRC, Oritsemeyiwa Eyesan, disclosed this during a visit to the leadership of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja.

Speaking at the meeting, Mrs Eyesan, said the commission has been enforcing key provisions of the PIA, particularly those relating to host communities and the obligations of operating companies.

“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,” she said.

Under the PIA, oil and gas companies, referred to as settlors, are mandated to contribute 3 per cent of their Operating Expenditure (OPEX) from the preceding financial year into a Host Communities Trust Fund.

The fund is meant for the benefit of communities in oil and gas producing areas.

According to Mrs Eyesan, the HCDTs have already funded the construction of schools, hospitals and other infrastructure in host communities.

She added that the initiative has contributed significantly to peace and stability in areas that were previously volatile, and has also helped drive an increase in oil production.

The NUPRC boss acknowledged that some of the trusts have become subjects of litigation, mainly due to disagreements over the composition of their Boards of Trustees.

She said the commission has been working to ensure the trusts run smoothly in the interest of the country.

The Commission’s Alternative Dispute Resolution Center, she noted, has played a pivotal role in resolving some of the grievances.

Mrs Eyesan also promised to investigate the lingering disagreement between Sterling Oil Exploration and Energy Production Company (SEEPCO) and its host community in Anambra State.

While appreciating RMAFC for its interest in host communities, she stressed that oversight on how the funds are managed remains the exclusive responsibility of the NUPRC.

In his remarks, the Chairman of RMAFC, Mohammed Shehu, commended the NUPRC for overseeing reforms in the oil and gas sector that have contributed to growth in production.

Mr Shehu said RMAFC considers the upstream oil and gas sector critical because it accounts for a large portion of revenue that goes into the Federation Account.

He thanked the NUPRC leadership for honouring the RMAFC’s invitation and called for stronger collaboration between both institutions in the interest of the country.