Petroleum regulator says PIA framework is driving development as new trust board is inaugurated in Rivers……
More than 1,100 development projects are currently being implemented across the Niger Delta through the Host Communities Development Trust (HCDT) framework introduced under Nigeria’s Petroleum Industry Act (PIA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed.
The NUPRC Assistant Director, Host Community Development Affairs, Kingsley Ehiaguina, revealed this on Thursday during the inauguration of the Board of Trustees of the PML 66 Host Communities Development Trust established by Ingentia Energies Limited in Port Harcourt, Rivers State.
The newly inaugurated trust covers three host communities in Ahoada West Local Government Area of Rivers State — Egbolom, Omelema and Ahoada I.
Established under the Petroleum Industry Act, which took effect in 2021, the Host Communities Development Trust framework was designed to ensure that communities hosting oil and gas operations benefit directly from petroleum activities through targeted development projects.
Speaking at the event, Ehiaguina described the inauguration as another major step in implementing the HCDT initiative, which he said had already recorded significant achievements across oil-producing communities.
He disclosed that 163 Host Communities Development Trusts had so far been incorporated, with billions of naira contributed into their accounts to support community development programmes.
“Since the implementation of the HCDT, 163 HCDTs have been incorporated, and I can tell you that billions of naira have been remitted into the various accounts, and over 1,100 projects are ongoing across the Niger Delta,” Ehiaguina said.
He added that more than 200 projects had already been completed and commissioned, describing the progress as evidence that the Petroleum Industry Act and its community development provisions were delivering results.
“We have commissioned over 200 projects. I can tell you that the PIA and the HCDT framework are working,” he said.
Ehiaguina commended Ingentia Energies Limited for supporting the implementation of the law and urged the newly inaugurated trustees to prioritise transparency and accountability in managing community development funds.
He assured the communities that the NUPRC would continue to ensure that companies meet their statutory obligations, including the required three per cent contribution of operating expenditure to Host Communities Development Trusts.
“From the NUPRC, we’ll ensure that everything that you own as your right is given to you by ensuring that the company pays its three per cent statutory contribution and ensuring that the sustainable development you seek for your community is achieved,” he said.
Ingentia Energies promises stronger community impact
The Managing Director and Chief Executive Officer of Ingentia Energies Limited, Charles Odita, said the establishment of the trust followed extensive consultations with relevant stakeholders and the affected communities.
Odita explained that the company would provide funding for projects selected by the host communities in line with the requirements of the Petroleum Industry Act.
He described the inauguration of the board as a turning point that would accelerate development in the communities hosting the company’s operations.
Under the PIA, operators are required to contribute three per cent of their previous year’s operating expenditure to the Host Communities Development Trust, which then determines priority projects based on the needs of the communities.
“With the inauguration of this Trust there will even be a jump start to the impact of our operation on the community,” Odita said.
He added that allowing community representatives to decide on development priorities would create a more effective approach to addressing local needs.
The Permanent Secretary of the Rivers State Ministry of Chieftaincy and Community Affairs, Patrick Ndukwe, described the inauguration as an important milestone for the energy sector and the PML 66 host communities.
Ndukwe said the development fulfilled a key obligation of oil and gas operators under the Petroleum Industry Act, while assuring that the state government would continue to provide a peaceful environment for businesses to operate.
He advised the trustees to select projects that support the development priorities of the Rivers State Government, including infrastructure, education, healthcare, agriculture, transportation and sustainable community development.
“As you choose your projects you must ensure that they align with the Rivers State Government development plan,” he said.
Earlier, a consultant to Ingentia Energies Limited, Godwin Minimah, described the inauguration of the PML 66 Board of Trustees as a significant move towards strengthening cooperation between the company and its host communities.
