ABUJA, Nigeria (VOICE OF NAIJA)-The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that the Host Community Development Trust (HCDT) fund has grown to N373bn as of October 13, 2025, with 536 community development projects currently in progress across oil-producing regions.
In a statement issued on Monday by the Commission’s Head of Media and Strategic Communications, Eniola Akinkuotu, it was revealed that the fund comprises N125bn and $168.9m, contributed by oil companies operating under the Petroleum Industry Act (PIA), 2021.
The HCDT, created under Section 235 of the PIA, requires oil companies, known as “settlors,” to contribute 3 per cent of their annual operating expenditure from the previous financial year into a trust fund dedicated to the development of their host communities.
The statement read, “The Host Community Development Trust has risen to N373bn as of October 13, 2025,” the Commission said, adding that at least 536 community projects are ongoing simultaneously.
As stipulated in the PIA, each settlor must collaborate with host communities to appoint a Board of Trustees responsible for managing the trust, which must be registered with the Corporate Affairs Commission (CAC).
The funds, held in banks with at least a BBB credit rating, are used for projects in infrastructure, education, healthcare, and environmental protection, among others.
The Commission clarified that while it does not directly manage the funds, it ensures transparency and compliance through a digital monitoring system called HostComply, which tracks project implementation and disbursement in real time.
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Highlighting the initiative’s tangible results, the NUPRC last month oversaw the commissioning of over 10 completed projects and the launch of more than 10 new ones under the Obagi Host Community Development Trust in Rivers State, operated by TotalEnergies.
The projects, inaugurated between September 24 and 25, 2025, at Ogbogu community in Ogba/Egbema/Ndoni Local Government Area, were described by the Commission as a “defining milestone” in implementing the PIA’s host community provisions.
Completed projects include a two-storey classroom block with 18 fully furnished classrooms, the remodelling of Ogbogu Cottage Hospital with a 20-bed capacity and new diagnostic centre, and the upgrade of the Ogbogu Ultra-Modern Civic Centre.
Others include road pavements at Oboburu, a bottled and sachet water factory at Amah, and the installation of gas skid plants and school renovations in Erema and Akabuka communities.
According to the Commission Chief Executive, Gbenga Komolafe, represented by the Executive Commissioner, John Tonglagha, these projects aim to tackle challenges in education, healthcare, and employment within host communities.
“These projects are designed to bring lasting benefits to our host communities while promoting peace and cooperation with the oil industry,” Komolafe said, commending President Bola Tinubu for fostering a supportive policy environment that has attracted new upstream investments.
At the event, Rivers State Deputy Governor, Prof. Ngozi Odu, representing Governor Siminalayi Fubara, lauded the transparent management of the HCDT funds, noting significant improvements compared to past practices.
“In previous years, funds sent to communities were not fully utilised. What we are witnessing now is accountability and impact,” she said.
Also speaking, Chairman of the Senate Committee on Oil and Gas Host Communities, Senator Benson Agadaga, credited the HCDT for promoting peace in the Niger Delta.
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“The little peace we are seeing in the region today is because of the achievements of the PIA. Host communities now see real development and are less hostile,” he noted.
Managing Director of TotalEnergies Upstream Companies in Nigeria, Matthieu Bouyer, expressed pride in being among the first to implement the HCDT mandate, stating that over 500 projects across 60 communities have been identified under its plan.
“This initiative has created more than 1,000 jobs and will impact over 30,000 people,” Bouyer said, describing the Obagi Trust as “a model of what is possible when trust and policy align.”
Chairman of the Obagi HCDT Board of Trustees, High Chief Dike Hopeson Dike, assured stakeholders of continued collaboration, revealing that the community has provided over 125 solar-powered boreholes, meeting 70 per cent of its water needs.
“These projects are helping our people transition from poverty to prosperity,” Dike stated.
The Host Community Development Trust remains one of the PIA’s flagship initiatives, aimed at promoting inclusiveness, transparency, and peace between oil companies and their host communities.