The Human and Environmental Development Agenda (HEDA Resource Centre) has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its efforts in mobilising approximately N300 billion for the Host Community Development Trusts (HCDT).

In a letter signed by HEDA’s Chairman, Olanrewaju Suraju, and addressed to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, the group expressed satisfaction with the milestone, describing it as a commendable move towards sustainable development and stability in Nigeria’s oil-producing communities.

The organisation urged full compliance from all settlers, by Section 240 of the Petroleum Industry Act (PIA), which mandates annual contributions equivalent to three per cent of actual operating expenditure from the preceding year.

HEDA, however, cautioned that the management and disbursement of the HCDT fund must be guided by the highest standards of transparency, accountability, and community participation, as stipulated in Sections 241, 244 and 251 of the PIA.

The fund, the group emphasised, must be utilised solely for community development, infrastructure, security, and environmental protection for the direct benefit of host communities.

“We strongly advise against replicating the operational failures and lack of accountability that have characterised past interventionist agencies like the NDDC and Presidential Amnesty Programme.

“The Petroleum Industry Act provides a clear framework for inclusive and accountable management of the fund. Any deviation will betray the purpose of the Act and erode public trust.” Suraju said.

HEDA called for strict adherence to the Act’s provisions, including the establishment of a Board of Trustees and Management Committee (Sections 235, 242, and 247), and urged anti-corruption agencies to play an active oversight role to ensure the fund becomes a catalyst for lasting development.

The organisation further noted that efficient deployment of the HCDT fund would eliminate the need for costly and controversial pipeline surveillance contracts, as well-supported communities would naturally protect oil infrastructure and preserve their environment.