Oil Firms Disbursed N326bn To Host Communities – NUPRC

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed that over N326 billion has been allocated and disbursed to host communities through the Host Community Development Trusts (HCDTs).

This fund represents the statutory 3 per cent of oil and gas operators’ operational expenditure (OPEX) mandated by the Petroleum Industry Act (PIA) of 2021 to support development in oil-producing areas.

According to the commission, a total of 145 HCDTs have been duly incorporated by the Corporate Affairs Commission (CAC), ensuring that the funds are transparently managed and channeled towards sustainable development projects that benefit the host communities.

The NUPRC emphasised that the mechanism was designed to foster inclusivity, reduce crude oil theft, and improve the socio-economic conditions of the Niger Delta and other oil-producing regions.

Speaking during the just concluded Nigerian Oil and Gas (NOG) Conference & Exhibitions in Abuja, the commission’s chief executive, Gbenga Komolafe, highlighted that the disbursement of these funds had facilitated numerous community projects, with 198 projects already underway in 137 host communities. Additionally, joint ventures such as the Nigerian National Petroleum Company/Mobil Producing Nigeria have contributed significantly, disbursing over N36 billion to specific host community trusts.

NUPRC also reiterated its commitment to transparency and accountability in the management of the Host Community Development Trust funds, utilizing digital platforms like HOSTCOMPLY to ensure proper oversight and stakeholder engagement.

This allocation marks a significant step in implementing the PIA’s provisions to ensure that oil and gas host communities receive direct economic and social benefits from petroleum operations, thereby promoting peace and development in these regions.