Over 172 host community trusts incorporated so far — NUPRC reveals

A total of 172 Host Communities Development Trusts (HCDTs) have so far been incorporated by oil and gas companies operating in Nigeria, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed.

The Commission stated that the implementation of the host community provisions under the Petroleum Industry Act (PIA) is driving investment in oil-producing areas, fostering peace and stability, and supporting higher crude oil production.

The Executive Director of Economic Regulation at the NUPRC, Eyesan Okorodudu, disclosed this during a visit to the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja.

Under the PIA, oil and gas companies designated as settlors are required to contribute three percent of their operating expenditure (OPEX) from the preceding financial year into a Host Communities Development Trust Fund for the benefit of their host communities.

These funds are designed to finance infrastructure in communities hosting oil and gas operations while providing a structured framework for operators to fulfill their host-community obligations.

According to the NUPRC, 172 HCDTs have now been incorporated as the regulator continues to enforce compliance with the PIA’s host-community provisions.

Okorodudu noted that the trusts have already begun financing local development projects, including the construction of schools, healthcare facilities, and other vital infrastructure.

She added that these interventions are improving relations between oil operators and host communities, particularly in areas that previously suffered from unrest.

The NUPRC official linked stronger community relations directly to greater operational stability in oil-producing regions, noting that the peaceful environment has contributed to rising crude output.

The HCDT framework forms part of the PIA’s broader initiative to address long-standing grievances regarding the benefits due to host communities.

Prior to the enactment of the PIA, recurrent disputes over environmental degradation, inadequate development, and perceived economic exclusion fueled tensions across several oil-producing areas.

The HCDT framework establishes a dedicated mechanism through which host communities directly manage and allocate development funds.

The statutory three percent OPEX contribution is expected to support community-identified priority projects while institutionalizing a transparent relationship between energy companies and their host localities.

The NUPRC reaffirmed that its regulatory enforcement remains focused on ensuring all operating companies strictly comply with their statutory obligations.

The Commission’s disclosure comes as Nigeria intensifies efforts to ramp up national oil production by systematically tackling operational, security, and community-related bottlenecks in the Niger Delta.

The incorporation of 172 trusts reflects growing adherence to one of the PIA’s core community-development pillars, with the NUPRC maintaining that investments driven by these trusts are fostering a more secure operating environment for the upstream sector.

For the broader energy industry, the sustained execution of this framework is expected to solidify community relations, mitigate operational disruptions, and bolster national crude output targets