HCDTs remitted N358bn as at October - NUPRC
By Olakunle Oke
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced a major progress report on local content and security, confirming that Host Community Development Trusts (HCDTs) have remitted a total equivalent of ₦358.67 billion as of October 2025.
The total remittance comprises ₦122.34 billion in Naira and $168.91 million in U.S. Dollars.
The funds, which are part of the mandate under the Petroleum Industry Act (PIA) 2021, are directly benefiting oil-producing areas through the Trust scheme. The Commission also reported that 536 community projects are currently at various stages of completion under the HCDTs. These projects often include crucial infrastructure like schools, hospitals, and roads.
The oil and gas industry also recorded a major rebound, with the number of active drilling rigs surging from eight in 2021 to 69 as of October 2025, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
In a statement by its Head of Media and Strategic Communication, Eniola Akinkuotu, the Commission attributed the sharp rise in rig activity to renewed investor confidence and growing stability in the upstream petroleum sector.
"The number is expected to increase even further in the coming months," the statement read, adding that the success aligns with the government’s efforts to establish a favorable investment climate.
As part of its reforms, NUPRC highlighted the implementation of the 'Drill or Drop' policy. In line with the Petroleum Industry Act (PIA) 2021, this policy compels oil firms to relinquish idle acreages, ensuring optimal asset utilization and preventing the hoarding of undeveloped oil fields.
The Commission noted it had identified over 400 dormant oil fields and compelled several operators to act swiftly to avoid licence revocation.
Since its inception, NUPRC has developed 24 forward-thinking regulations to enhance transparency and attract investment. Of these, 19 have been gazetted, with five awaiting approval.
The Commission also reported approving divestments worth billions of dollars in 2024 alone. These transfers including assets from NAOC to Oando Energy Resources, Equinor to Chappal Energies, Mobil Producing Nigeria Unlimited to Seplat Energies, and Shell Petroleum Development Company to Renaissance Africa Energy were attributed to investor portfolio reordering focused on deep offshore development.
Further progress was disclosed under the Nigerian Gas Flare Commercialisation Programme (NGFCP), which aims to end routine gas flaring and attract up to $2.5 billion in new investments.
NUPRC confirmed that awards for flare sites have been completed, marking a milestone in environmental sustainability.
Regarding local benefits, the Commission revealed that as of October 2025, Host Community Development Trusts (HCDTs) had remitted a total equivalent of ₦358.67 billion (comprising ₦122.34 billion and $168.91 million). It added that 536 community projects are at various stages of completion under the Trust scheme. This initiative has been credited with significantly improving security in oil-producing areas and reducing crude theft.
"In 2021, average daily crude oil losses stood at 102,900 barrels per day, but as of September 2025, theft has dropped by 90 per cent to just 9,600 barrels per day," the statement noted, crediting collaboration between security forces, private contractors like Tantita Security Services, and the NUPRC.