The Nigerian Midstream and Downstream Petroleum Regulatory Authority has stepped up enforcement of the Host Community Development Trust framework under the Petroleum Industry Act (PIA) 2021, directing operators and licensees to comply with the mandatory three per cent annual contribution to host community funds.
The regulator also unveiled a digital portal designed to enhance transparency, accountability and effective monitoring of the scheme.
The NMDPRA made the announcement during a Stakeholder Sensitisation Workshop on the implementation of the HCDT framework and the rollout of the HCDT Digital Portal in Port Harcourt.
HCDT, established under Nigeria’s PIA 2021, is designed to deliver direct social, environmental and economic benefits to petroleum-producing communities.
The framework seeks to address the development challenges of host communities affected by oil and gas operations.
Representing the Authority Chief Executive, Mr Rabiu Umar, at the event, the Executive Director for Health, Safety, Environment and Community, Dr Mustapha Lamorde, said the newly launched digital portal would streamline the registration of trusts, enable project tracking, support compliance reporting, monitor statutory contributions and provide real-time regulatory oversight.
“With strong national expectations for the HCDT framework to transition from policy to practical implementation, the workshop was organised to provide clarity on the establishment of Host Community Development Trusts.
“It will also provide guidance on the governance responsibilities of trustees and management committees, obligations of operators and licensees, administration of the trust fund, compliance and reporting requirements, as well as grievance resolution mechanisms established under the regulations,” he said.
Lamorde also urged operators to fulfil the mandatory three per cent annual contribution obligation, describing it as essential to promoting sustainable development and improving the welfare of host communities.
In his remarks, the Chairman of the House of Representatives Committee on Host Communities, Dumnamene Dekor, praised the NMDPRA for convening the sensitisation workshop.
Dekor emphasised that midstream petroleum assets—including pipelines, depots, terminals, processing plants and transportation infrastructure, play a vital role in safeguarding Nigeria’s energy security.
He added that communities hosting such facilities should enjoy tangible and long-term benefits from the operations carried out in their areas.
Also speaking, the Director of Environmental Sustainability and Host Community at the NMDPRA, Anne Omezi, said the stakeholder engagement on the implementation of the HCDT framework was aimed at strengthening transparency, fostering collaboration among stakeholders and advancing sustainable development.
She added that the initiative would help ensure host communities receive greater and more meaningful benefits from Nigeria’s oil and gas industry.
“We are here to build bridges of understanding, foster collaboration, and establish a shared vision for community development. I encourage everyone to actively participate and share ideas that will deliver lasting benefits to host communities within the midstream segment of Nigeria’s oil and gas industry,” she said.
Meanwhile, a representative of one of the host communities in Rivers State, Barry Mwara, said the sensitisation programme had equipped him with valuable information and insights that would help guide efforts toward a more prosperous future for his community.
He noted that the engagement had improved stakeholders’ understanding of the Host Communities Development Trust framework and its potential benefits.
