The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says more than 1,100 development projects are currently being executed across the Niger Delta under the Host Communities Development Trust (HCDT) framework created by the Petroleum Industry Act (PIA).
The commission disclosed this on Thursday during the inauguration of the Board of Trustees of the PML 66 Host Communities Development Trust by Ingentia Energies Limited in Port Harcourt, Rivers State.
The trust serves three host communities in Ahoada West Local Government Area—Egbolom, Omelema and Ahoada I.
Speaking at the event, the Assistant Director of Host Community Development Affairs at the NUPRC, Kingsley Ehiaguina, described the inauguration as another milestone in implementing the Host Communities Development Trust framework.
According to him, the initiative has significantly improved development across oil-producing communities since the Petroleum Industry Act came into effect in 2021.
“We are so delighted to be here today at this inauguration of the PML 66 HCDT. It is a testament to the implementation and the operationalisation of the Host Community Development Trust.
“It is a transformational initiative that has the tendency and the potential to turn our host community into a wonder, and the gains have already been recorded since the implementation of the HCDT,” he said.
Ehiaguina disclosed that 163 Host Communities Development Trusts have been incorporated, with billions of naira already remitted into their accounts.
“Since the implementation of the HCDT, 163 HCDTs have been incorporated, and I can tell you that billions of naira have been remitted into the various accounts, and over 1,100 projects are ongoing across the Niger Delta.
“We have commissioned over 200 projects. I can tell you that the PIA and the HCDT framework are working,” he added.
He commended Ingentia Energies Limited for complying with the provisions of the Petroleum Industry Act and assured the host communities that the commission would ensure companies fulfil their statutory obligations, including the payment of the mandatory three per cent operating expenditure contribution.
He also urged the newly inaugurated Board of Trustees to remain transparent and prioritise the development needs of the host communities.
The Managing Director and Chief Executive Officer of Ingentia Energies Limited, Charles Odita, said the trust was established after extensive consultations with stakeholders and host communities.
He explained that the company would continue to provide funding for projects selected by the communities in line with the Petroleum Industry Act.
“I believe that with the inauguration of this Trust there will even be a jump start to the impact of our operation on the community because, as we are all aware, under the PIA, the government in its wisdom has mandated that we set aside three per cent of our operating expenditure for the previous year to be given to the Host Community Development Trust,” Odita said.
He described the initiative as a major step toward accelerating development in the affected communities.
Also speaking, the Permanent Secretary of the Rivers State Ministry of Chieftaincy and Community Affairs, Patrick Ndukwe, described the inauguration as a significant milestone for both the energy sector and host communities.
He urged the trustees to prioritise projects that align with the Rivers State Government’s development agenda, including infrastructure, transportation, education, healthcare and agriculture.
Earlier, consultant to Ingentia Energies Limited, Godwin Minimah, said the inauguration of the Board of Trustees would strengthen collaboration between the company and its host communities.
Author
