By Abiodun Folarin
WorldStage— The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has disclosed that 172 Host Communities Development Trusts (HCDTs) have so far been incorporated by oil and gas companies operating in the country.
The NUPRC Chief Executive, Mrs. Gbenga Eyesan, disclosed this when the Commission’s management visited the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja.
Under the Petroleum Industry Act (PIA), oil and gas companies, known as settlors, are required to contribute three per cent of their preceding financial year’s operating expenditure to a Host Communities Trust Fund for the benefit of their host communities.
Eyesan said the NUPRC had continued to enforce the provisions of the PIA, particularly those relating to host communities and the obligations of oil and gas operators.
“We have laid out procedures for doing things and we have put regulations in place to streamline the process. So far, we have registered 172 HCDTs and we have been able to manage contributions by settlors,” she said.
According to her, the trusts have funded critical projects, including the construction of schools, hospitals and other infrastructure, contributing significantly to peace and stability in communities that were previously affected by unrest.
She added that improved stability in host communities had also contributed to increased oil production.
The NUPRC boss acknowledged that some HCDTs had been subjected to litigation arising from disagreements over the constitution of their Boards of Trustees.
She, however, said the Commission had been working to resolve the challenges and ensure that the trusts operate effectively in the interest of the country.
Eyesan also highlighted the role of the Commission’s Alternative Dispute Resolution Centre in addressing grievances and resolving disputes involving host communities and other stakeholders.
While appreciating RMAFC for its interest in host communities, she stressed that oversight of the management of the funds remained the exclusive responsibility of the NUPRC.
Eyesan also pledged to investigate the lingering dispute between Sterling Oil Exploration and Energy Production Company (SEEPCO) and its host community in Anambra State.
Earlier, the Chairman of RMAFC, Dr. Mohammed Bello Shehu, commended the NUPRC for implementing reforms in the upstream oil and gas sector, noting that the reforms had contributed to growth in production.
Shehu said RMAFC considered the upstream oil and gas sector critical to the Nigerian economy because of its significant contribution to revenues accruing to the Federation Account.
He thanked the NUPRC leadership for honouring the Commission’s invitation and called for stronger collaboration between both institutions to advance the national interest.
