The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has incorporated 155 Host Community Development Trusts (HCDTs) across oil-producing communities in the Niger Delta as part of the implementation of the Petroleum Industry Act (PIA).
The Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, disclosed this during a town hall engagement with host community development trusts and settlors in Rivers State, held at Voyage Hotel, Port Harcourt.
Represented by Success Ikpe, an Assistant Director in the Commission, Eyesan said the NUPRC has also deployed a digital reporting and monitoring system, HostComply, to track the activities of HCDTs and ensure compliance with PIA regulations.
She stated that since the implementation of the PIA, the Commission has facilitated the incorporation of over 155 HCDTs, funded more than 79 trusts through the mandatory three per cent operational expenditure (OPEX) contributions by settlors, and supervised the execution of about 663 ongoing projects aimed at improving infrastructure and livelihoods in host communities.
Eyesan acknowledged that despite the progress recorded, challenges remain. These include governance and accountability concerns in managing HCDT funds, delays in project execution due to bureaucratic bottlenecks, and community grievances over representation and resource allocation.
To address these issues, she proposed strengthening governance frameworks, ensuring full utilisation of the HostComply portal, and enforcing strict adherence to transparency and accountability standards.
“The success of HCDTs requires collective commitment from all stakeholders — government, traditional rulers, oil companies and the communities themselves,” she said, reaffirming the Commission’s dedication to regulatory oversight, policy support and technical assistance to ensure sustainable development in host communities.
Meanwhile, the National President of Host Communities of Nigeria Producing Oil and Gas, Dr. Benjamin Tamaranebi, called on state governors to remit part of the 13 per cent oil derivation fund received from the Federal Government to host communities.
He criticised what he described as the politicisation of the derivation fund by state governments, arguing that the funds were intended to support the development of oil-producing communities.
“The 13 per cent derivation is key and paramount to the lives of host communities. Now that the PIA is on board, we call on state governments to respectfully release part of the derivation to the Trusts to complement their efforts,” Tamaranebi said.
He also revealed that the NUPRC has established a dispute resolution centre in Yenagoa, Bayelsa State, urging communities with grievances involving oil companies to utilise the facility.
However, Tamaranebi expressed concern that some HCDT committees are seeking to exceed the statutory five per cent administrative cost ceiling stipulated by the PIA. The Act allocates 75 per cent of funds to community development projects, 20 per cent for investments, and five per cent for administration.
“If we tamper with the 75 per cent meant for development, we deprive ourselves of progress,” he warned.
In his remarks, the Permanent Secretary of the Rivers State Ministry of Energy and Natural Resources, James Ugochindu, commended the NUPRC and Hostcom Projects Management and Advisory Konsult Ltd for organising the engagement, noting that the initiative aligns with the state government’s objective of equitable development across communities.
Blessing Ibunge in Port Harcourt
About the Author
