By Joycelyn Ellakeche Adah
The Host Community Development Trust (HCDT) established under the Petroleum Industry Act (PIA) has grown to ₦373 billion, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The Commission disclosed that the fund comprising ₦125 billion and $168.9 million is currently driving over 536 community development projects nationwide.
The PIA mandates oil companies, referred to as “settlors,” to contribute 3% of their annual operating expenditure into the trust fund for the benefit of host communities.
These funds, managed through boards of trustees and monitored via NUPRC’s HostComply dashboard, are channelled into infrastructure, healthcare, education, and empowerment projects aimed at reducing restiveness and vandalism in oil producing regions.
While NUPRC does not directly manage the funds, it supervises their implementation to ensure transparency and compliance with the law.
In a major milestone, the Commission recently oversaw the delivery of over 10 completed projects and the flag off of several others under the Obagi Host Community Development Trust operated by TotalEnergies in Rivers State.
The handover ceremony, held in Ogbogu, Ogba-Egbema Ndoni Local Government Area, marked a defining step in the implementation of the PIA’s host community provisions.
The commissioned projects include a two-storey, 18 classroom block, a 20 bed remodelled Ogbogu Cottage Hospital, a diagnostic centre, rehabilitated civic centre, and asphalt paved roads across Ogbogu and Oboburu communities.
The Trust also established a bottled water factory, gas skid plant, and renovated schools equipped with new classroom furniture and facilities.
NUPRC Chief Executive, Engr. Gbenga Komolafe, represented by Capt. John Roland Tonglagha, said the projects would “address gaps in education, healthcare, and job creation” while urging host communities to safeguard the infrastructure and support Nigeria’s upstream growth.
Rivers State Deputy Governor, Prof. Ngozi Nma Odu, lauded the timely project delivery, noting that funds “are now being properly channelled to visible community impact.”
The Senate Committee Chairman on Oil and Gas Host Communities, Sen. Benson Agadaga, praised the initiative, saying peace in the Niger Delta has improved significantly due to the effective implementation of the PIA.
TotalEnergies’ Managing Director, Matthieu Bouyer, described the Obagi HCDT as “a model for sustainable development,” adding that over 500 projects have been identified across 60 communities, creating over 1,000 jobs and impacting 30,000 people.
Chairman of the Obagi HCDT Board of Trustees, High Chief Dike Hopeson Dike, confirmed that the communities had already benefited from 125 solar powered boreholes, reducing water scarcity by 70%.
The NUPRC reaffirmed its commitment to ensuring transparency, accountability, and community participation in the management of host community development funds.
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