The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), in partnership with Hostcom Project Management and Adversary Consult Limited, has called on Host Communities Development Trusts (HCDTs) to ensure the effective utilisation of trust funds for sustainable development initiatives within their respective communities.
This appeal was made during a stakeholders’ engagement meeting aimed at raising awareness and promoting responsible management of trust funds for the benefit of host communities. The meeting took place at the Ministry of Mineral Resources conference hall in Yenagoa, the capital of Bayelsa State.
In his keynote address, the Chief Executive Officer of NUPRC, Engineer Gbenga Komolafe, represented by Mr Bighoro Sylvester, the Commission’s Field Coordinator, emphasised that the engagement was an essential requirement under the Petroleum Industry Act (PIA) 2021.
He pointed out that the meeting demonstrated the collective resolve of stakeholders to advance sustainable development, promote inclusion, and ensure accountability in managing host community funds.
Komolafe highlighted that, since the implementation of the PIA, the HCDTs had successfully facilitated the incorporation of 140 trusts across various host communities, secured funding for 79 trusts through the mandatory three per cent contributions by settlers, and supervised approximately 192 ongoing projects.
According to him, these efforts have contributed significantly to local infrastructure development, real-time monitoring of trust fund activities, and improved adherence to financial regulations. However, he acknowledged that challenges persist, including governance and accountability issues, disputes over resource distribution, and community grievances regarding representation.
During the town hall session, the National Chairman of HOSTCOM, Dr Benjamin Style Tamaranebi (JP), stressed the importance of using the Trust Fund for projects that enhance infrastructure and improve living conditions in host communities.
Tamaranebi highlighted that if the PIA had not made provisions for host community development, it would have led to dissatisfaction and potential unrest among local residents. He asserted that where structured development frameworks are in place and function effectively, there would be fewer instances of militancy disrupting oil exploration.
He further argued that substantial development in host communities would create a mutually beneficial environment for all stakeholders, including the government, oil companies, and the local population.
Tamaranebi emphasised that one of the key objectives of the engagement meeting was to ensure that all participants were well informed about how the PIA could drive tangible progress in host communities.
Addressing the topic of financing and proper management of community trust funds, he advised host communities to focus on sustainable projects that would have a lasting impact.
“There are trust funds available, but how do you access them? And once you secure the funding, how do you allocate the resources effectively? We encourage host communities to prioritise initiatives that will bring real development to their people,” he stated.
He also urged communities to collaborate on infrastructure projects, such as linking roads between different areas and investing in education through scholarships for deserving students. He cautioned against wasteful expenditures and unnecessary duplication of projects that do not contribute to long-term growth.
Additionally, Tamaranebi encouraged host communities to explore investment opportunities beyond oil and gas by supporting entrepreneurship and skill development programmes that could foster sustainable economic diversification.
Addressing some of the challenges in implementing host community development provisions, Mr Abiye Johnson, a representative of the Deputy Executive Director of the Environmental Defenders Network (EDEN), pointed out that geographical constraints, such as the presence of both shallow and deep waters in littoral communities, had created difficulties in defining eligible beneficiaries for the Trust Fund.
He further explained that some communities within the littoral zones, particularly those in oil block areas, had not been included in the Trust and were advocating for recognition and registration. In Bayelsa State, the local government areas of Brass, Ekeremor, and Southern Ijaw were particularly affected.
Johnson urged communities that felt excluded from the Trust to engage with relevant industry operators to address their concerns.
In his remarks, the Permanent Secretary of the Ministry of Mineral Resources, Mr P. K. Tikuru, who represented the Commissioner, commended all participants for their engagement in the discussion.
He expressed confidence that the meeting would enhance stakeholders’ understanding of the PIA’s role in fostering development and encouraged all involved to work together to drive meaningful progress in the Niger Delta region.