The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has made significant strides in rolling out the Petroleum Industry Act (PIA), incorporating 155 Host Community Development Trusts (HCDTs) across oil-producing communities in the Niger Delta region.
This milestone highlights ongoing efforts to empower local communities through structured development funds derived from petroleum operations.
The announcement came during a town hall engagement meeting with HCDTs and settlers in Rivers State, held over the weekend at Voyage Hotel in Port Harcourt. NUPRC Chief Executive Mrs. Oritsemeyiwa Eyesan, represented by Assistant Director Success Ikpe, outlined the commission’s achievements since the PIA’s implementation.
Key accomplishments include facilitating the incorporation of over 155 HCDTs, securing funding for more than 79 trusts via mandatory 3% contributions from settlors’ operating expenditures (OPEX), and overseeing the execution of approximately 663 community projects aimed at enhancing infrastructure and livelihoods.
A notable innovation in this process is the development and deployment of HostComply, a digital reporting and monitoring portal.
This system enables real-time tracking of HCDT activities, promoting compliance with PIA regulations and improving efficiency in managing funds allocated to host communities. “Since the implementation of the PIA, the NUPRC has facilitated the incorporation of over 155 HCDTs across host communities, funded over 79 HCDTs with the mandatory 3% OPEX contributions by Settlors, supervised the execution of about 663 ongoing projects by several HCDTs, improving infrastructure and livelihoods, and developed and deployed HostComply… ensuring compliance and efficiency in the management of host community funds,” Eyesan stated through her representative.
Despite these advancements, Eyesan acknowledged persistent challenges in domesticating the PIA’s provisions. These include governance and accountability issues in handling HCDT funds, bureaucratic delays hindering project execution, and community grievances stemming from conflicts over representation and resource allocation.
To mitigate these hurdles, the commission proposes strengthening governance frameworks, ensuring full utilization of the HostComply portal, and adhering strictly to accountability standards.
Eyesan emphasized the need for collaborative action among all parties involved. “The success of HCDTs requires collective commitment from all stakeholders—government, traditional rulers, oil companies, and the communities themselves,” she said.
The NUPRC remains dedicated to regulatory oversight, policy support, and technical assistance to ensure host communities thrive alongside the petroleum industry. Let us seize this opportunity to turn challenges into opportunities and drive sustainable, inclusive development in the Niger Delta.
The meeting also featured strong advocacy from Dr. Benjamin Tamaranebi, national president of the Host Communities of Nigeria Producing Oil and Gas (HOSTCOM). Tamaranebi urged state governors to allocate a portion of the 13% oil derivation funds—received monthly from the federal government—directly to host communities.
He criticized what he described as the politicization of these funds by state administrations, arguing that they were intended for the development of oil-producing areas rather than solely benefiting state coffers.
“Remember, we have 13% derivation funds coming to the communities. That fund was not left for only the state governments but for the development of host communities,” Tamaranebi asserted. “The government has politicized the fund without recourse to the real host communities that produce oil and gas. That was the core reason why we started out to fight. Remember, through our fight, we have the NDDC; through our fight, amnesty came on board for our youths.”
Tamaranebi further called for state governments to complement the PIA’s mechanisms by releasing parts of the derivation funds to HCDTs. “Now we are looking forward to the state governments doing the same on the 13% derivation. The 13% derivation is key and paramount to the lives of host communities. Now that the PIA is on board, we call on the state governments to respectfully release part of the 13% derivation to the Trust to complement the Trust so that we can work together,” he added.
Additionally, Tamaranebi highlighted the establishment of an NUPRC dispute resolution center in Yenagoa, Bayelsa State, encouraging communities with grievances—particularly those involving oil companies—to utilize it. However, he expressed concern over some HCDT members pushing to exceed the statutory 5% allocation for administrative costs.
Under the PIA, 75% of funds must go toward community development projects, 20% for investments, and only 5% for administration. “The Act made provision that 75% of the funds should go to community development projects, 20% for investments, while 5% is for administration costs, but most committees want to go beyond the 5%. If we continue to tamper with the 75%, we deprive ourselves of that development,” he warned.
In closing remarks, James Ugochindu, Permanent Secretary in the Rivers State Ministry of Energy and Natural Resources, represented by Sokariba Igwe, praised the NUPRC and Hostcom Projects Management and Advisory Konsult Ltd for organizing the event. He noted that the initiative supports the state government’s commitment to equitable development across all communities.
This engagement underscores the PIA’s potential to transform Nigeria’s oil sector by fostering better relations between industry operators and host communities, though it also reveals the need for continued reforms to address funding disparities and operational inefficiencies.
As the Niger Delta remains a critical hub for the nation’s petroleum production, stakeholders are optimistic that collaborative efforts will yield long-term benefits for sustainable development.
WHAT YOU SHOULD KNOW
The Petroleum Industry Act (PIA) is delivering tangible progress—155 Host Community Development Trusts incorporated, over 79 funded with 3% OPEX contributions, and 663 projects underway—backed by the new HostComply digital monitoring system.
However, success hinges on one critical factor: genuine collaboration and accountability among all stakeholders—government, oil companies, traditional leaders, state governors, and the communities themselves.
Without strict adherence to governance rules, transparent fund management, and fair release of the 13% derivation funds to host communities, the PIA’s promise of sustainable development in the Niger Delta risks being undermined. Collective commitment remains the make-or-break element.
