Precious Anga
Lagos — The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has disclosed that more than 1,100 development projects are currently being implemented across oil-producing communities in the Niger Delta under the Host Communities Development Trust, HCDT, framework established by the Petroleum Industry Act, PIA.
The commission also revealed that over 200 projects have already been completed, while 163 Host Community Development Trusts have been incorporated since the implementation of the Petroleum Industry Act in 2021, with billions of naira remitted into their accounts to finance community development initiatives.
Assistant Director of Host Community Development Affairs at NUPRC, Kingsley Ehiaguina, disclosed this during the inauguration of the Board of Trustees of the PML 66 Host Communities Development Trust by Ingentia Energies Limited in Port Harcourt, Rivers State.
The newly inaugurated trust covers the host communities of Egbolom, Omelema and Ahoada I in Ahoada West Local Government Area of Rivers State.
Speaking at the event, Ehiaguina described the Host Communities Development Trust as one of the most significant reforms introduced by the Petroleum Industry Act, saying it was already delivering measurable development outcomes across oil-producing communities.
“This inauguration is another milestone in the implementation and operationalisation of the Host Community Development Trust. It is a transformational initiative with the potential to completely change our host communities, and the results are already evident,” he said.
He stated that since the implementation of the framework, 163 HCDTs have been established nationwide, with substantial statutory contributions paid into their accounts by settlors.
“Billions of naira have been remitted into the various trust accounts. More than 1,100 projects are ongoing across the Niger Delta, while over 200 projects have already been commissioned. I can confidently say that the Petroleum Industry Act and the HCDT framework are working,” Ehiaguina added.
He commended Ingentia Energies Limited for complying with the provisions of the Petroleum Industry Act and pledged that the commission would continue to ensure that host communities receive all benefits due to them under the law.
Addressing members of the newly inaugurated Board of Trustees, Ehiaguina assured them that the commission would monitor compliance with the statutory three per cent operating expenditure contribution required from oil companies.
“From the NUPRC, we will ensure that everything due to your communities is delivered by making sure the company pays its statutory three per cent contribution and that the sustainable development your communities deserve is achieved,” he said.
He urged the trustees to administer the trust with transparency, accountability and fairness, stressing that the credibility of the HCDT framework would depend largely on prudent management of community resources.
Managing Director and Chief Executive Officer of Ingentia Energies Limited, Charles Odita, said the inauguration followed extensive consultations with community leaders and other stakeholders to ensure broad participation in the process.
Odita explained that the Host Communities Development Trust would empower the communities to determine and implement projects that directly address their development priorities.
“The Petroleum Industry Act requires operators to set aside three per cent of their previous year’s operating expenditure for the Host Community Development Trust. Once those funds are remitted, it is the trustees representing the communities that determine how they should be utilised,” he said.
According to him, the establishment of the trust would significantly strengthen the company’s relationship with its host communities while accelerating socio-economic development in the area.
“I believe this Trust will become a major game changer for the accelerated development of our host communities because the communities themselves will decide the projects that matter most to them,” Odita added.
Also speaking, the Permanent Secretary of the Rivers State Ministry of Chieftaincy and Community Affairs, Patrick Ndukwe, described the inauguration as a major step towards improving relations between petroleum operators and their host communities.
He said the Host Communities Development Trust fulfilled one of the key obligations imposed on operators under the Petroleum Industry Act and assured investors of the state’s commitment to maintaining a peaceful business environment.
Ndukwe urged the trustees to prioritise projects that complement the Rivers State Government’s development agenda, particularly in infrastructure, education, healthcare, agriculture and rural development.
Earlier, consultant to Ingentia Energies Limited, Godwin Minimah, described the inauguration of the PML 66 Board of Trustees as a significant milestone that would deepen collaboration between the company and its host communities while promoting sustainable development under the Petroleum Industry Act.
