• Stakeholders push for even impact
Over $150 million has been disbursed to host community development trusts (HCDTs) across Nigeria since the enactment of the Petroleum Industry Act (PIA). But stakeholders said the intended benefits are yet to be fully realised in oil-producing communities.
The concerns were raised at the 2025 HCDT Executive Roundtable held in Lagos, where senior executives, regulators and development specialists gathered to assess four years of HCDT implementation.
The forum, organised by First Fiduciary Limited and AO2LAW in partnership with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), brought key energy actors together to evaluate progress, challenges and the need for reforms.
Presenting comprehensive data on current HCDT performance, the Assistant Director and Head of the Host Community Development Branch at NUPRC, Engineer Olatokunbo Karimu, confirmed that more than $150 million has been deposited into HCDT accounts. He disclosed that automated compliance systems such as Host Comply are now operational and capacity development initiatives are ongoing.
However, he pointed to persistent challenges in skills development, enforcement of funding obligations, and genuine community participation. He called for more deliberate, coordinated responses to address these gaps.
The Executive Chairman of First Fiduciary Limited, Bidemi Olumide, said the HCDT framework must move beyond compliance to become a credible tool for social transformation. According to him, “HCDT is beyond regulatory obligation; it is an instrument for transforming relationships between energy companies and host communities.”
Examining practical barriers and proposed solutions for improving HCDT operations, Managing Director of First Fiduciary Limited, Oyeyemi Oke, emphasised that credibility, not just compliance, would determine the long-term success of the scheme.
“We need to move from ticking regulatory boxes to building systems that communities can trust and engage with. That’s where real development begins,” he said.
Speaking from a policy standpoint, the Lead, Stakeholder Relations for Upstream Investment at NNPC Ltd, Uzo Ejidoh, described HCDTs as a platform for inclusive, sustainable development. She noted that while the framework is still evolving, companies must go beyond statutory CSR requirements to ensure their presence translates into tangible development outcomes.
The roundtable reflected a growing consensus within the sector that a compliance-led approach is no longer sufficient. As Nigeria deepens reforms in the oil and gas sector, stakeholders say the next phase of HCDT implementation must prioritise accountability, inclusive partnerships and long-term impact in host communities.
