The Federal Government, yesterday, in Abuja said about 75 host community development trusts (HCDTs) have been approved. Speaking at a stakeholders’ workshop, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, said about 41 of the HCDTs have been incorporated while 19 others have been pre-qualified for fund managers.
Komolafe noted that the government has commenced the process of establishing a baseline of ongoing community development projects, in preparation of the migration of such into the HCDTs. He stressed that government would enforce 100 per cent compliance should oil companies default in remitting to the funds.
As part of the Petroleum Industry Act (PIA), oil companies in the country are mandated to remit three per cent of their operating expenses to a pool that would enable government address the age-long agitation of transferring benefits of the oil industry to communities impacted by oil and gas exploration and production.
While the NUPRC also unveiled a digital platform at the event aimed at ensuring transparency and accountability in the administration and management of the fund, Komolafe, who was represented by Executive Commissioner, Economic Regulation and Strategic Planning, NUPRC, Dr. Kelechi Ofoegbu, said the Commission prioritises efforts to increasing oil and gas production.
He noted that the efforts have been constrained by a myriad of challenges ranging from insecurity, low investment, de-prioritisation of funding of hydrocarbon development arising from the energy transition.
