Oil Firms Disburse N97 Billion, $149 Million to Host Communities – NUPRC

 By: Manoah kikekon 

Niger Delta village 

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed that oil companies operating in the country have remitted a staggering N97 billion and $149 million to Host Community Development Trusts (HCDTs) as part of their obligations under the Petroleum Industry Act (PIA).  

Chidinma Nwabueze, a representative of the NUPRC, made the revelation on Wednesday in Abuja, stating that the funds were remitted into HCDT accounts as of May 19, 2024. According to her, the commission facilitated the transfers in compliance with the PIA’s mandate, which requires oil firms (settlors) to contribute 3% of their annual operating expenditure (OPEX) to host communities.  

Ms. Nwabueze further revealed that 102 HCDTs have so far received the funds, with several projects already completed. “Last week, we commissioned 67 projects in Bayelsa by Renaissance Energy Company Ltd. and additional projects in Rivers State,” she said. The NUPRC has also approved 167 applications for HCDT incorporation, with 146 fully registered at the Corporate Affairs Commission (CAC).  

The HCDT initiative aligns with the NUPRC’s goal of fostering sustainable development in oil-rich regions while curbing unrest. Nwabueze emphasized that the scheme ensures direct economic benefits for host communities, strengthening relations between residents and oil companies. 

“This framework is designed to reduce conflicts and create a conducive business environment for shared prosperity,” she added.  

The 3% OPEX contribution is split into 75% for capital projects and 25% for investments, ensuring long-term financial stability for host communities. Additionally, HCDTs can receive extra funding through donations, grants, and investment returns. To enhance transparency, the NUPRC developed HostComply, a digital platform for monitoring HCDT activities and ensuring compliance with PIA regulations.    

Nwabueze clarified that oil firms must incorporate HCDTs before submitting Field Development Plans or commencing commercial operations. The three key stakeholders in the process are the NUPRC (regulator), settlors (oil firms), and host community representatives (Board of Trustees).  

NAN