By Onu Okorie

Nigerian Upstream Petroleum Regulatory Commission NUPRC has announced that 172 Host Communities Development Trusts HCDTs have been incorporated by oil and gas companies across the country under the provisions of the Petroleum Industry Act PIA.
Speaking during a visit to the Revenue Mobilisation Allocation and Fiscal Commission RMAFC in Abuja, NUPRC leadership said the commission has continued to enforce the provisions of the PIA, particularly those relating to host communities and the obligations of operating companies.
Under the PIA, oil and gas companies are required to contribute three per cent of their operating expenditure from the preceding financial year to a Host Communities Trust Fund for the benefit of oil-producing communities.
The NUPRC disclosed that it has established procedures and regulations to streamline the implementation of the HCDT framework and oversee contributions made by the operating companies. According to the commission, the trusts have supported the construction of schools, hospitals and other infrastructure projects in host communities.
The commission noted that the initiatives have contributed to improved peace and stability in previously volatile communities, with positive effects on oil production levels.
While acknowledging that some trust funds have faced litigation stemming from disagreements over the composition of their Boards of Trustees, the NUPRC said it has been working to ensure the smooth operation of the trusts. The commission added that its Alternative Dispute Resolution Centre has played an important role in resolving some of the disputes.
The NUPRC also reiterated that oversight of the management of host community funds remains within its statutory mandate, while promising to investigate the lingering dispute involving Sterling Oil Exploration and Energy Production Company SEEPCO and its host community in Anambra State.
In his remarks, RMAFC Chairman, Dr. Mohammed Bello Shehu, commended the NUPRC for implementing reforms in the oil and gas sector that have contributed to increased production. He described the upstream petroleum sector as critical to the nation’s economy because of its substantial contribution to the Federation Account. Shehu also called for stronger collaboration between the RMAFC and the NUPRC, emphasizing the need for closer cooperation in the national interest.