ABUJA, Nigeria (VOICE OF NAIJA)- The Nigerian Midstream and Downstream Petroleum Regulatory Authority has stepped up enforcement of the Host Community Development Trust framework under the Petroleum Industry Act 2021, directing operators and licensees in the sector to comply with the compulsory three per cent yearly contribution to host community funds.
The agency also introduced a digital portal to enhance transparency and accountability.
The NMDPRA disclosed this 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 structure established under Nigeria’s Petroleum Industry Act 2021 to ensure petroleum-producing communities receive direct social, environmental, and economic benefits.
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The fund is intended to address developmental challenges in oil-producing areas.
Representing the Authority Chief Executive, Mr Rabiu Umar, the Executive Director, Health, Safety, Environment and Community, Dr Mustapha Lamorde, said the newly launched portal would support digital registration of trusts, project monitoring, compliance reporting, tracking of statutory contributions, and real-time regulatory supervision.
“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 also urged operators to adhere to the mandatory three per cent annual contribution to promote sustainable development in host communities.
Speaking at the event, the Chairman of the House of Representatives Committee on Host Communities, Dumnamene Dekor, praised the NMDPRA for organising the sensitisation programme.
He stated that midstream operations such as pipelines, depots, terminals, processing plants, and transportation infrastructure remain vital to Nigeria’s energy security, adding that host communities should enjoy meaningful and long-term benefits from such activities.
In her remarks, the Director of Environmental Sustainability and Host Community at the NMDPRA, Mrs Anne Omezi, said the stakeholder engagement on the implementation of the HCDT framework would strengthen transparency, collaboration, and sustainable development while ensuring host communities gain more from Nigeria’s oil and gas industry.
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“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, representing one of the host communities in Rivers State, said the sensitisation programme had equipped him with valuable knowledge that would help shape a better 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 also called on the NMDPRA to strengthen its oversight role to ensure the fund is properly managed and used for its intended purpose.