By ebosele@hotmail.com –
The Nigerian Upstream Regulatory Commission (NUPRC) says 172 Host Communities Development Trusts (HCDTs) have so far been incorporated by oil and gas companies operating in the country.
The Commission said the development was part of efforts to implement the provisions of the Petroleum Industry Act (PIA) aimed at improving relations between oil and gas companies and their host communities.
Under the PIA, oil and gas companies, known as settlors, are required to contribute three percent of their operating expenditure (OPEX) from the preceding financial year to a Host Communities Trust Fund for the benefit of their host communities.
The NUPRC Chief Executive, Mrs Oritsemeyiwa Eyesan, disclosed this while addressing the leadership of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja.
Eyesan said the Commission had continued to enforce the provisions of the PIA, particularly those relating to host communities and the obligations of oil and gas operating companies.
She said the HCDTs had funded the construction of schools, hospitals and other critical infrastructure in host communities, contributing significantly to peace and stability in areas that were previously affected by volatility.
According to her, the improved relationship between oil-producing communities and operators has also had a positive impact on crude oil production.
Eyesan noted that the interventions through the HCDTs had helped create a more conducive operating environment for oil and gas companies, thereby contributing to increased production.
The NUPRC CEO said sustained implementation of the host communities’ provisions of the PIA remained critical to ensuring that communities benefit directly from petroleum operations while supporting stability and increased investment in the upstream sector.
