NUPRC reports 172 host community trusts incorporated to boost oil production

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that 172 Host Communities Development Trusts (HCDTs) have been incorporated by oil and gas companies operating in Nigeria. This development follows the mandates of the Petroleum Industry Act (PIA), which requires companies, referred to as settlors, to contribute three percent of their operating expenditure from the previous financial year to these funds.

NUPRC Chief Executive Oritsemeyiwa Eyesan stated that these trusts have funded critical infrastructure, including schools and hospitals, in host communities. This investment has contributed to increased peace and stability in previously volatile areas, which in turn has positively impacted crude oil production by creating a more conducive operating environment.

While noting that some trusts have faced litigation regarding the constitution of their Boards of Trustees, Eyesan highlighted that the NUPRC’s Alternative Dispute Resolution Center has been instrumental in addressing grievances. The Commission continues to enforce PIA provisions to ensure communities benefit directly from petroleum operations while supporting upstream sector investment.