The Nigerian Upstream Regulatory Commission (NUPRC) says 172 host communities development trusts (HCDTs) have so far been incorporated by oil and gas companies operating in the country.
Speaking when the leadership of NUPRC visited the headquarters of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) visited in Abuja, Oritsemeyiwa Eyesan, chief executive officer (CEO) of the commission, said the trusts were established in line with provisions of the Petroleum Industry Act (PIA).
According to the NUPRC CEO, the PIA requires oil and gas companies, known as settlors, to contribute three percent of their operating expenditure (OPEX) from the preceding financial year to a host communities trust fund.
She said the fund is intended to support the development and welfare of communities hosting oil and gas operations.
Eyesan added that the commission had been enforcing the provisions of the PIA, particularly those relating to host communities and the obligations of operating companies.
She said the HCDTs had funded the construction of schools, hospitals and other infrastructure in host communities.
She said the initiatives had contributed significantly to peace and stability in communities that were previously affected by unrest.
According to her, the improved stability had also translated into increased oil and gas production.
“The Host Communities Development Trusts have contributed significantly to peace and stability in hitherto volatile communities,” she said.
Eyesan said the commission would continue to ensure that operators complied with their obligations under the PIA, particularly those aimed at improving relations between oil-producing companies and host communities.
