Upstream Regulator Reports N373bn In Host Community Devt Fund, Oversees 536 Projects

The upstream sector regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has reported that the Host Community Development Trust Fund has risen to N373 billion as of October 13, 2025.

The Commission also revealed that it is currently overseeing 536 active community development projects funded through the Trust across Nigeria’s oil-producing regions.

According to the NUPRC, the N373 billion fund comprises N125 billion in naira and $168.9 million in foreign currency contributions from oil and gas operators, known as settlors.

The establishment of the Host Community Development Trust (HCDT) fund is mandated under Section 235 of the Petroleum Industry Act (PIA) 2021, which requires oil companies operating in host communities to allocate three per cent of their annual operating expenditure from the preceding year into these dedicated trust funds.

These funds are used exclusively to finance development projects that address the socio-economic needs of host communities, including infrastructure, education, healthcare, environmental sustainability, and youth empowerment.

The PIA requires that oil companies, in consultation with host communities, establish Boards of Trustees to manage the funds.

These Boards are duly registered as corporate bodies with the Corporate Affairs Commission and oversee the implementation of projects as prioritised through comprehensive community needs assessments.

While the NUPRC does not directly control the funds, it monitors their allocation and project implementation via a digital platform called HostComply, ensuring compliance with statutory regulations and fostering transparency.

In a recent development reflecting the commission’s active facilitation role, NUPRC oversaw the delivery of more than 10 transformative projects and flagged off an additional 10 initiatives under the Obagi Host Community Development Trust in Rivers State, operated by TotalEnergies.

The project handover was marked by a two-day ceremony held between September 24 and 25, 2025, at the Ogbogu Community, Ogba Egbema Ndoni Local Government Area.

The completed projects in Obagi include the demolition and reconstruction of two-storey classroom blocks with 18 UBEC-standard classrooms, a remodelled 20-bed Ogbogu Cottage Hospital, along with a new diagnostic centre, and the upgrade of the Ogbogu Ultra Modern Civic Centre, which has a capacity for 1,200 people. Infrastructure improvements also encompass fully paved roads measuring 260 meters and 320 meters in different communities, construction of an Amah Bottling Water Factory with substantial production capacities, installation of a Gas Skid Plant, and renovations of local primary schools with modern school furniture and facilities.

Speaking at the event, NUPRC chief executive, Engr. Gbenga Komolafe emphasised that these projects will enhance basic education, healthcare services, and employment opportunities.

Komolafe, who was represented by the NUPRC executive commissioner, Capt. John Roland Tonglagha encouraged host communities to take ownership of these assets and collaborate with upstream operators to develop the oil industry further and promote national prosperity. Komolafe also lauded President Bola Tinubu’s proactive support, which has improved investment prospects in the upstream petroleum sector.

Also speaking, the deputy governor of Rivers State, Professor Ngozi Nma Odu, expressed satisfaction with the timely delivery and effective utilisation of funds, contrasting it positively with previous administrations where funds were often underutilised. Senator Benson Agadaga, Chairman of the Senate Committee on Oil and Gas Host Communities, praised the positive impact of the PIA in reducing host community restiveness, highlighting that peace in the Niger Delta is key to achieving Nigeria’s crude production target of over two million barrels per day.

The managing director of TotalEnergies Upstream Companies Nigeria, Matthieu Bouyer, stressed that TotalEnergies was among the first international oil companies to fully comply with the HCDT mandate, having created over 1,000 jobs and impacted more than 30,000 people across more than 60 communities through the Obagi HCDT.

He described the initiative as a model for sustainable community development aligned with regulatory frameworks.

The Obagi HCDT Board of Trustees chairman, High Chief Dike Hopeson Dike, assured stakeholders of continued community cooperation and underscored significant progress in resolving local water challenges through over 125 solar-powered boreholes installed within a year.

The steady growth of the Host Community Development Trust Fund and the successful execution of hundreds of projects highlight the NUPRC’s critical role in ensuring the benefits of Nigeria’s hydrocarbon resources directly translate into tangible development and peace for host communities.