NUPRC Incorporates 103 Community Trusts, Inaugurates BoT for HCDTs

Emmanuel Addeh in Abuja

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday, disclosed that it had incorporated 103 community trusts in compliance with the Petroleum Industry Act (PIA), which provides for implementation of the Host Community Development Trust (HCDT).

A statement by the organisation signed by the Head of Public Affairs and Corporate Communications, Mrs. Olaide Shonola, noted that the commission’s Chief Executive, Gbenga Komolafe, made the remark while inaugurating the Board of Trustees (BoT) forum of the HCDTs in Abuja.
Komolafe said it had become imperative because of the need for not just a one-stop-shop for resolving host communities’ issues, but a vehicle that would enable the smooth administration of the host community provisions in the PIA.

Komolafe said “in compliance with Sections 232 and 235 of the PIA, which provides for implementing the HCDT, NUPRC has incorporated 103 Trusts.
“This is because of the commission’s priority on social inclusion, which is one of the key objectives of the ‘HostCom’ provisions under the PIA, with the belief that social inclusion is and will be the recipe for peace and harmony that will enhance the operations of the oil industry.”
He said it was the reason the commission brought up the HDCT BoT so that there could be, aside from other benefits, a rule of uniform application as part of the developmental objectives provided under the law.

Komolafe pointed out that from the outset, the commission had decided to implement the HostCom provisions transparently.
He added that for efficiency and effectiveness of the scheme’s implementation, the commission partnered with an Original Equipment Manufacturer (OEM) to develop a transparent real-time digital portal/reporting system, known as HOSTCOMPLY, where administration of the scheme will be reported.

Having learned from past attempts to implement the type of scheme in the country, the key objective of the scheme, he said, is transparent implementation using a digital approach.

“For a seamless implementation and achievement of the intended objective, the commission intends to ensure capacity building for BoT members to enable proper understanding and implementation of this initiative.

“By the time the scheme is fully implemented, all stakeholders should be able to follow progress most transparently,” Komolafe noted.

 In his opening remarks, the Executive Commissioner, Health, Safety, Environment and Community (HSEC), Capt. Roland Tonlagha, said that the forum was a platform for engagement between BoT, settlors and host communities.

He explained that the forum enhances accountability and transparency since effective development requires careful planning and strategic decision-making.

 “The forum also serves as a space where stakeholders collectively access the operationalisation of the HCDT. So, through informed discussions and exchange of ideas, the BoT can make decisions that align with the goal and aspiration of the PIA for the HCDT,” he said.

He expressed the hope that the body would operate within the ambits of the law and, through constructive dialogue facilitated by the HCDT forum, deliver tangible results to the communities it serves.

The acting Director of Host Communities, Mrs. Ejiro Ofondu, also gave a status report on the implementation of the HCDT.

According to the report, by Thursday, February 22, 2024, 35 settlors had sent their applications to the commission for the incorporation of HCDT.

She stressed that 160 of such applications had been received and attended to, while 111 had been approved to be incorporated by the Corporate Affairs Commission (CAC).

“Out of the 111, 103 have completed the entire process and have been fully incorporated. Fifty-two have so far been funded. Currently, 43 applications are still in the pipeline; some are under review, and some are under litigation,” she stated.