Nigerian Midstream and Downstream Petroleum Regulatory Authority. Photo: NMDPRA The Nigerian Midstream and Downstream Petroleum Regulatory Authority has intensified efforts to enforce the Host Community Development Trust framework under the Petroleum Industry Act 2021, ordering operators and licensees in the sector to comply with the mandatory three per cent annual contribution to host community funds, with the introduction of a digital portal aimed at improving transparency and accountability.
The NMDPRA disclosed this recently during a Stakeholder Sensitisation Workshop on the implementation of the HCDT framework and the operationalisation of the HCDT Digital Portal held in Port Harcourt. The Host Communities Development Trust is a framework mandated by Nigeria’s Petroleum Industry Act 2021 to ensure direct social, environmental, and economic benefits for petroleum-producing areas.
The fund is designed to address the development needs of impacted communities in oil-producing areas. Speaking on behalf of the Authority Chief Executive, Mr Rabiu Umar, the Executive Director, Health, Safety, Environment and Community, Dr Mustapha Lamorde, said the newly introduced portal would facilitate digital registration of trusts, project tracking, compliance reporting, monitoring of statutory contributions, and real-time regulatory oversight.
“With strong national expectations for the HCDT framework to transition from policy to practical implementation, the workshop was organised to provide clarity on the establishment of Host Community Development Trusts. “It will also provide guidance on the governance responsibilities of trustees and management committees, obligations of operators and licensees, administration of the trust fund, compliance and reporting requirements, as well as grievance resolution mechanisms established under the regulations,” he said.
Lamorde further urged operators to comply with the mandatory three per cent annual contribution requirement to ensure sustainable development in host communities. Related News Inside story: Why President, APC dumped Fubara Ex-SSG emerges Rivers ADC governorship candidate Tinubu wins presidential primary in Rivers by landslide Also speaking, the Chairman of the House of Representatives Committee on Host Communities, Dumnamene Dekor, commended the NMDPRA for organising the sensitisation forum.
He noted that midstream operations, including pipelines, depots, terminals, processing facilities, and transportation infrastructure, are critical to Nigeria’s energy security, stressing that host communities must derive practical and lasting benefits from such operations.
Also, the Director, Environmental Sustainability and Host Community, NMDPRA, Mrs Anne Omezi, said the stakeholder engagement on the operationalisation of the HCDT framework would promote transparency, collaboration, and sustainable development while ensuring host communities derive greater benefits from Nigeria’s oil and gas sector.
“We are here to build bridges of understanding, foster collaboration, and establish a shared vision for community development. I encourage everyone to actively participate and share ideas that will deliver lasting benefits to host communities within the midstream segment of Nigeria’s oil and gas industry,” she said.
Meanwhile, Chief Barry Mwara, from one of the host communities in Rivers State, said the sensitisation programme had provided him with valuable information and knowledge that would help in charting a brighter future for his community. “I will go back with this information so we can further strategise on how to benefit from midstream activities in our communities,” he said.
He urged the NMDPRA to strengthen its supervisory role to ensure that the fund is properly managed and utilised for its intended purpose. The NMDPRA disclosed this recently during a Stakeholder Sensitisation Workshop on the implementation of the HCDT framework and the operationalisation of the HCDT Digital Portal held in Port Harcourt.