NUPRC Disburses N97 Billion, $149 Million to Host Community Trusts for Development Initiatives.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed that around 102 Host Community Development Trusts (HCDTs) have received a total of ₦97 billion and $149 million in development funds from oil and gas companies, known as settlors.
This announcement was made by Mrs. Chidinma Nwabueze, Senior Manager of Health, Safety, Environment, and Community at NUPRC, during a media workshop held on Wednesday in Abuja.
According to Nwabueze, the disbursed funds represent three percent of the previous year’s Operating Expenditure (OPEX) from oil companies, as mandated by the Petroleum Industry Act (PIA), to support sustainable development and promote peace within host communities.
"As of May 19, the commission facilitated the transfer of ₦97 billion and $149 million into the HCDT fund accounts," she said.
Nwabueze explained that HCDTs are incorporated and funded by settlors using the three percent OPEX requirement, with the goal of financing developmental projects in host communities.
“Currently, more than 102 HCDTs have received funds exceeding ₦97 billion and $149 million from settlors,” she noted. “Within just three years, many of these trusts have completed major projects. Last week alone, we commissioned 67 projects by Renaissance Energy in Bayelsa and others in Rivers State.”
She also disclosed that 167 applications had been approved for incorporation, with 146 HCDTs fully registered with the Corporate Affairs Commission (CAC) and 21 still being processed. Over 102 of the incorporated trusts already have operational accounts funded with the stated amounts.
According to her, the establishment and funding of HCDTs align with NUPRC’s objective of ensuring sustainable development and shared prosperity in upstream petroleum operations, while also fostering peace in host communities.
The swift rollout of the HCDT framework is intended to reduce community unrest, create a more stable business environment, and ensure that communities directly benefit from petroleum activities.
Nwabueze further clarified that HCDTs must be incorporated before oil companies can submit their Field Development Plans (FDP) or begin commercial operations under a petroleum mining license.
She identified three key stakeholders in the HCDT process: the regulator (NUPRC), which provides oversight and regulations; the settlors, who fund the trust through their three percent OPEX contribution; and the Board of Trustees, composed of community members nominated to manage and oversee the trust’s implementation.
In addition to the OPEX-based funding, Nwabueze noted that HCDTs can also receive donations, grants, gifts, and earn income through interest, profits, and reserve funds. The OPEX contributions are divided into 75 percent for capital project development and 25 percent for investments.
To ensure transparency and effective tracking, NUPRC has developed a dedicated software platform known as HostComply, designed to provide end-to-end reporting and monitoring of all HCDT-related activities and the implementation of PIA’s host community provisions.
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