The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says 172 Host Communities Development Trusts (HCDTs) have so far been incorporated by oil and gas companies.
The Commission Chief Executive, Mrs Onitsemeyiwa Eyesan, disclosed this on Sunday in Abuja while addressing the leadership of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
Under the Petroleum Industry Act (PIA), oil and gas companies are required to contribute three per cent of their operating expenditure of the preceding financial year to a Host Communities Trust Fund for the benefit of their host communities.
Eyesan said the NUPRC had been enforcing the provisions of the PIA, particularly those concerning host communities and the obligations of operating companies.
“So far, we have registered 172 HCDTs and we have been able to manage contributions by settlors,” she said.
She said the trusts had funded the construction of schools, hospitals and other infrastructure, contributing to peace and stability in previously volatile communities and helping to increase production.
Eyesan noted that some HCDTs had been involved in litigation over disagreements concerning the constitution of their boards of trustees, adding that the NUPRC was working to resolve the issues.
She said the commission’s Alternative Dispute Resolution Centre had also played a key role in addressing some of the grievances.
Eyesan said oversight of the management of the funds remained the exclusive responsibility of the NUPRC, while promising to investigate the lingering disagreement between Sterling Oil Exploration and Energy Production Company (SEEPCO) and its host community in Anambra.
The Chairman of the RMAFC, Dr Mohammed Shehu, commended the NUPRC for reforms in the oil and gas sector that had contributed to increased production.
Shehu called for stronger collaboration between both institutions, noting the importance of the upstream oil and gas sector to the Federation Account.
