Host Community Development Fund hits N373bn

Port Harcourt — The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has announced that the Host Community Development Trust, HCDT, a key provision of the Petroleum Industry Act, PIA, has grown to N373 billion as of October 2025, driving 536 community projects across oil-producing areas of the Niger Delta.

NUPRC said the fund comprises N125 billion and $168.9 million, representing the three percent annual operating expenditure contributed by oil companies to host communities as mandated by the PIA.

“These contributions are domiciled in banks with a minimum BBB rating,” NUPRC said in a statement.

“The Commission provides oversight through our monitoring platform, HostComply, to ensure transparency, compliance, and impact in every host community project.”

According to the NUPRC, the N373 billion fund is being deployed to execute 536 development projects across host communities in Rivers, Delta, Bayelsa, Akwa Ibom, and other oil-producing states.

Among the completed projects are a two-storey classroom block with 18 fully furnished classrooms, the remodelling of Ogbogu Cottage Hospital with a 20-bed capacity and diagnostic centre, and the upgrade of the Ogbogu Ultra-Modern Civic Centre.

Other projects include road pavements at Oboburu community, a bottled and sachet water factory in Amah, and the installation of gas skid plants and school renovations in Erema and Akabuka communities, all in Ogba/Egbema/Ndoni LGA of Rivers State.

“The PIA has for the first time created a structured, transparent, and sustainable framework for community development,” NUPRC added. “Host communities are now direct beneficiaries of the resources derived from their environment.”

The Commission disclosed that in September alone, it facilitated the completion of more than ten projects and the flag-off of another ten under the Obagi Host Community Development Trust, HCDT, operated by TotalEnergies in Rivers State.

Sharing photos of one of the completed schools on its verified X handle, the Commission wrote, “Before and after photos of a school in Obagi oil-producing community in Rivers State. The school is just one out of the 536 community projects being handled simultaneously through the Host Community Development Trust, HCDT.”

Under Section 235 of the Petroleum Industry Act, oil companies (known as settlors) are required to incorporate and fund Host Community Development Trusts for the benefit of communities where they operate.

Each settlor must deposit three percent of their previous year’s operating expenditure into the HCDT, which is housed in an accredited financial institution.

While the NUPRC does not have direct access to the funds, the Commission said it monitors every transaction and project execution through HostComply, its proprietary compliance dashboard.

“This platform allows the Commission to track every naira and dollar deposited, every project initiated, and every milestone achieved,” the statement noted. “It ensures that communities see real value from oil and gas activities.”

The Commission reaffirmed its commitment to making sure host communities derive direct and lasting benefits from oil and gas operations, emphasizing that sustainable development is at the heart of the PIA 2021 objectives.

“Our focus remains clear — to ensure that every host community feels the impact of the oil and gas industry beyond revenue figures,” the statement stated. “The success of the HCDT model is proof that collaboration, transparency, and accountability can drive real progress.”