The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed that 172 Host Communities Development Trusts (HCDTs) have so far been incorporated by oil and gas companies operating in Nigeria. The Commission said the trusts, established under the Petroleum Industry Act (PIA), had funded the construction of schools, hospitals and other critical infrastructure in oil-paroducing communities,... The post PIA: NUPRC Registers 172 Host Community Trusts appeared first on New Telegraph .
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed that 172 Host Communities Development Trusts (HCDTs) have so far been incorporated by oil and gas companies operating in Nigeria.
The Commission said the trusts, established under the Petroleum Industry Act (PIA), had funded the construction of schools, hospitals and other critical infrastructure in oil-paroducing communities, helping to promote peace and stability and boost crude oil production.
The Commission Chief Executive of the NUPRC, Mrs. Oritsemeyiwa Eyesan who made the disclosure while addressing leadership of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja, noted that the Commission had been enforcing the provisions of the PIA, particularly those relating to host communities and the obligations of oil and gas companies.
She said: “We have laid out procedures for doing things and we have put regulations in place to streamline the process.
“So far, we have registered 172 HCDTs and we have been able to manage contributions by settlors.”
Under the PIA, oil and gas companies, known as settlors, are required to contribute three per cent of their operating expenditure (OPEX) of the preceding financial year to a Host Communities Trust Fund for the benefit of their host communities.
Eyesan said the intervention of the HCDTs had gone beyond infrastructure provision, noting that the trusts had also contributed significantly to reducing tensions and improving stability in communities that were previously volatile.
In a statement signed by the Commission’s Head, Media and Corporate Communications, Eniola Akinkuotu on Sunday, the CCE noted that the improved stability had translated into increased production in the affected areas.
She, however, acknowledged that some HCDTs had become subjects of litigation following disagreements over the constitution of their Boards of Trustees.
Eyesan said the NUPRC had been working to resolve the disputes and ensure that the trusts operated smoothly in the interest of the country.
She added that the Commission’s Alternative Dispute Resolution Centre had played a pivotal role in addressing some of the grievances arising from the operation of the trusts.
While appreciating RMAFC for its interest in host communities, Eyesan stressed that oversight of the management of funds contributed to the HCDTs remained the exclusive responsibility of the NUPRC.
She, however, assured that the Commission would investigate the lingering disagreement between Sterling Oil Exploration and Energy Production Company (SEEPCO) and its host community in Anambra State.
The Chairman of RMAFC, Dr. Mohammed Shehu commended the NUPRC for overseeing reforms in the upstream oil and gas sector, saying the reforms had contributed to increased production.
Shehu said RMAFC considered the upstream oil and gas sector critical because of the huge volume of revenue it contributes to the Federation Account.
He called for stronger collaboration between the two institutions in the interest of the country.
