NUPRC Says N200bn Disbursed to HCDTs, Clarifies Alleged Delayed Funding in A’Ibom

Emmanuel Addeh in Abuja

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday said that N200 billion has so far been disbursed to oil Host Communities Development Trusts (HCDTs) as prescribed by the law, clarifying that the allegation that it had abandoned communities in Akwa Ibom were untrue.

In a statement in Abuja signed by the Head, Public Affairs and Corporate Communication, Mrs Olaide Shonola, the upstream regulator stressed that 137 HCDTs had been fully incorporated with 198 ongoing developmental projects, Akwa Ibom communities inclusive.

“The attention of the NUPRC is drawn to a recent publication regarding alleged delays in funding development projects in host communities in Akwa Ibom State.

“We wish to state that the NUPRC is fully committed to the implementation of the HCDT in line with Chapter 3 of the Petroleum Industry Act (PIA, 2021), to ensure the objectives of fostering sustainable prosperity within the host communities as well as the provision of direct social and economic benefits from petroleum operations to host communities are well achieved.

“The commission has been working assiduously to ensure that all host communities that fall within the ambits of the law benefit from the HCDT fund and have established mechanisms to safeguard the funds while ensuring accountability and transparency in the disbursement and management.

“It is worth mentioning that NUPRC has diligently superintended the incorporation process which has resulted in the full incorporation of 137 HCDTs with over N200 billion disbursed. 198 developmental projects are going on across host communities, Akwa Ibom communities inclusive. Some yet-to-be-funded Trusts are undergoing due diligence and various validation processes,” the commission said.

Against this backdrop, the commission reaffirmed the commitment and ongoing efforts of the NUPRC in collaboration with the oil and gas operators(settlors) in the region and beyond.

It confirmed that the Ibeno, Mbo and Esit Eket communities are well covered in the HCDTs implementation process, with relevant settlors having established HCDTs for these communities, ensuring that funds are released and community development plans are actively underway.

Besides, the commission said the 198 projects initiated focus on various aspects of community development, including education, healthcare infrastructure, and economic empowerment.

In addition, it stated that alternative dispute resolution centres had been established in Bayelsa and Lagos at the NUPRC’s National Oil and Gas Excellence Centre.

ADR mechanisms, it said, include mediation and arbitration providing a structured process for resolving conflicts without resorting to litigations.

“The ADR also supports the amicable and efficient resolution of disputes, preserving relationships and reducing the time and cost associated with legal proceedings. To make for easy resolution of grievances for the ultimate peaceful coexistence of settlors with the host communities.

“NUPRC has launched the HostComply portal, an industry data automation portal for warehousing of all HCDT implementation and operationalisation processes and data for ease of access, inclusivity, fairness, accountability, transparency and compliance with regulation and the law.

“We encourage the public to visit www.hostcomply.nuprc.gov.ng for information on host community development,” it added.

According to the Gbenga Komolafe-led commission, the upstream regulator initiated the HCDT forum to meet with community representatives through its HCDT trustees to address broader issues and grievances ensuring continuous dialogue between host communities and the operators.

This forum, it said, promotes transparency and accountability ensuring that community voices are heard at a higher level.

According to the company, relevant settlors have successfully set up HCDTs for most of the host communities in Akwa Ibom state.

These trusts, it said, are designed to ensure that the benefits of oil and gas operations are directly channelled to community development through the involvement of host communities in the conduct of community needs assessment which metamorphose into the community development plan for implementation.

 The involvement of communities, according to the NUPRC, ensures that projects are relevant, sustainable, and beneficial to the community.

“These collaborative efforts foster a sense of ownership and promote inclusivity leading to successes recorded already with some of the HCDTs.

“Funds have already been released to these trusts and many have commenced community development projects aimed at improving the quality of life for community members and entrenching shared prosperity.

“These achievements underscore the commitment of the commission and settlors to the sustainable development of host communities. We remain dedicated to fostering a mutually beneficial relationship between settlors and their host communities and ensuring that the benefits of oil and gas operations are equitably shared,” it stated.

Consequent to the achievements made, the commission explained that the claims in the media that no progress is being made were not only false, but unfounded.

“We encourage all stakeholders, including community members and operators, to maintain open lines of communication with the NUPRC. For concerns regarding funding or implementation of projects, we urge parties to engage with us directly for resolution rather than resorting to public statements that may misinform or escalate tensions,” the NUPRC cautioned.