NUPRC Establishes 155 Trusts for Niger Delta Communities

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has officially incorporated 155 Host Community Development Trusts (HCDTs) across oil-producing areas in the Niger Delta. This initiative is part of the ongoing implementation of the Petroleum Industry Act (PIA). The announcement was made by the Commission’s Chief Executive, Mrs. Oritsemeyiwa Eyesan, during a town hall meeting with community representatives in Rivers State, held at the Voyage Hotel in Port Harcourt.

During the event, which was represented by Success Ikpe, an Assistant Director at NUPRC, Eyesan highlighted the introduction of a new digital reporting and monitoring system, known as HostComply. This platform aims to track the activities of HCDTs and ensure they adhere to PIA regulations. Since implementing the PIA, the NUPRC has successfully facilitated the establishment of over 155 HCDTs and funded more than 79 trusts through mandatory three per cent operational expenditure contributions by settlors. Furthermore, approximately 663 ongoing projects have been initiated to enhance infrastructure and improve livelihoods within these communities.

Despite these achievements, Eyesan acknowledged that significant challenges remain. Issues concerning governance and accountability in managing HCDT funds persist, alongside delays in project execution caused by bureaucratic processes. Community grievances regarding representation and the allocation of resources also continue to pose difficulties. To tackle these problems, she proposed strengthening governance frameworks and ensuring the full use of the HostComply portal while enforcing stringent transparency and accountability standards.

“The success of HCDTs requires collective commitment from all stakeholders — government, traditional rulers, oil companies, and the communities themselves,” Eyesan stated. She reaffirmed the Commission’s commitment to providing regulatory oversight, policy support, and technical assistance to promote sustainable development in host communities.

In a related discussion, Dr. Benjamin Tamaranebi, the National President of Host Communities of Nigeria Producing Oil and Gas, urged state governors to allocate a portion of the 13 per cent oil derivation fund received from the Federal Government back to host communities. Tamaranebi criticized the politicization of these funds by state governments, asserting that they are intended to foster the development of oil-producing regions.

“The 13 per cent derivation is crucial for the well-being of host communities. With the PIA now in effect, we call on state governments to allocate part of the derivation to the Trusts to support their efforts,” he emphasized. He also noted that the NUPRC has established a dispute resolution centre in Yenagoa, Bayelsa State, encouraging communities with grievances involving oil companies to utilize this facility.

Tamaranebi raised concerns about some HCDT committees attempting to exceed the statutory five per cent administrative cost ceiling established by the PIA. The Act designates 75 per cent of funds for community development projects, 20 per cent for investments, and five per cent for administration. “If we tamper with the 75 per cent designated for development, we deprive ourselves of progress,” he warned.

In closing, James Ugochindu, the Permanent Secretary of the Rivers State Ministry of Energy and Natural Resources, praised the NUPRC and Hostcom Projects Management and Advisory Konsult Ltd for organizing the engagement. He remarked that the initiative aligns with the state government’s goal of equitable development across communities, reinforcing the importance of collaboration in achieving sustainable outcomes for the Niger Delta region.