NUPRC Says 172 Host Community Trusts Now Incorporated

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed that 172 Host Communities Development Trusts (HCDTs) have so far been incorporated by oil and gas companies under the provisions of the Petroleum Industry Act (PIA).

The commission made the disclosure during a visit to the leadership of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja.

Under the Petroleum Industry Act, oil and gas companies, known as settlors, are required to contribute three per cent of their operating expenditure from the preceding financial year to a Host Communities Trust Fund for the benefit of oil-producing communities.

Speaking during the engagement, an NUPRC official, Eyesan, said the commission had continued to enforce provisions of the PIA relating to host communities and the responsibilities of operating companies.

She noted that the Host Communities Development Trusts had supported the construction of schools, hospitals and other critical infrastructure in benefiting communities.

According to her, the initiative has also contributed to peace and stability in communities that were previously affected by unrest and volatility.

Eyesan added that the improved relationship between oil companies and their host communities had helped create a more stable operating environment, contributing to increased oil and gas production.

The NUPRC said it would continue to enforce the relevant provisions of the Petroleum Industry Act to ensure that host communities benefit from petroleum operations within their areas.