The Nigerian Upstream Petroleum Regulatory Commission has revealed that approximately 102 Host Community Development Trusts have received a total of ₦97 billion and $149 million in remittances from settlors.

This was disclosed by the Commission’s Senior Manager for Health, Safety, Environment, and Community, Mrs. Chidinma Nwabueze, during a media workshop held on Wednesday in Abuja.

Nwabueze stated that the commission facilitated the remittance of ₦97 billion and $149 million into the accounts of the Host Community Development Trusts as of May 19.

She explained that the HCDTs are incorporated and funded by settlors—licensed oil and gas companies—through the allocation of three percent of their previous year’s operating expenditure (OPEX), as mandated by the Petroleum Industry Act.

“Currently, about 102 HCDTs have received in excess of N97 billion and 149 million dollars as HCDT funds remitted by Settlors into the HCDT fund account.

“Within three years, a lot of the HCDTs will be completing projects.

“Last week we were in Bayelsa to commission 67 projects from Renaissance Energy Company Ltd., and in Rivers State to commission some other projects,” she said.

She added that the commission had also approved 167 applications, which have been fully issued with approvals for incorporation of Host Community Development Trusts.

“Out of these, we have 146 fully incorporated HCDTs at the Corporate Affairs Commission (CAC), while 21 are under processing.

“Out of 146 fully incorporated HCDTs, we have over 102 HCDT accounts opened and funded to the tune of N97 billion and 149 million dollars,” she said.

Nwabueze noted that the Host Community Development Trust (HCDT) aligns fully with the NUPRC’s objective of promoting the sustainable development of Nigeria’s upstream petroleum sector to ensure shared prosperity in host communities.

She explained that the HCDT framework delivers direct social and economic benefits from petroleum operations to the communities, while also fostering peace between the host communities and the settlors.

She stated that the rapid implementation of the Host Community Development Regulations and the incorporation of the HCDT fund are designed to reduce recurring unrest in host communities and foster a stable, business-friendly environment where shared prosperity can thrive.

She further explained that the HCDT must be incorporated before the submission of the Field Development Plan (FDP) and the commencement of commercial operations under a Petroleum Mining License.

“Three strategic stakeholders in HCDT are the regulator, charged with making regulations and providing oversight functions for implementation of developmental projects, and the settlors who provide the three per cent OPEX to fund the trust.

“The third one is the Board of Trustees, being the community members, nominated by the community dwellers to serve on the board, to manage and administer the HCDT fund,” she said.