Host Community Fund Rises to N373bn with 536 Projects Underway — NUPRC

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that the Host Community Development Trust (HCDT) fund has reached ₦373 billion as of October 13, 2025, with 536 community development projects currently ongoing across oil-producing regions in Nigeria.

In a statement signed by the Commission’s Head of Media and Strategic Communications, Eniola Akinkuotu, on Monday, the fund comprises ₦125 billion and $168.9 million, contributed by oil companies operating under the Petroleum Industry Act (PIA), 2021.

Established under Section 235 of the PIA, the HCDT mandates oil companies—referred to as “settlors”—to allocate 3 per cent of their annual operating expenditure from the previous financial year to a trust fund dedicated to developing their host communities.

The statement noted that the funds, deposited in banks with at least a BBB credit rating, are used to finance projects in infrastructure, education, healthcare, and environmental protection.

Although the Commission does not directly manage the funds, it ensures transparency and compliance through a digital monitoring platform known as HostComply, which tracks project implementation and fund disbursement in real time.

Highlighting recent achievements, the NUPRC facilitated the commissioning of over 10 completed projects and the launch of another 10 under the Obagi Host Community Development Trust in Rivers State, operated by TotalEnergies. The projects were inaugurated between September 24 and 25, 2025, in Ogbogu community, Ogba/Egbema/Ndoni Local Government Area.

Completed projects include an 18-classroom two-storey school building, the remodelling of Ogbogu Cottage Hospital with a 20-bed capacity and diagnostic centre, and upgrades to the Ogbogu Ultra-Modern Civic Centre. Others comprise road pavements in Oboburu, a bottled and sachet water factory in Amah, and the installation of gas skid plants and school renovations in Erema and Akabuka communities.

Speaking at the event, the Commission Chief Executive, Gbenga Komolafe, represented by the Executive Commissioner for Health, Safety, Environment, and Community, John Tonglagha, said the projects were designed to tackle pressing community needs such as education, healthcare, and employment.

“These projects are intended to deliver lasting benefits to host communities while strengthening cooperation with the oil industry,” Komolafe said.

He also commended President Bola Tinubu for creating a policy environment that continues to attract new upstream investments.

Rivers State Deputy Governor, Prof. Ngozi Odu, representing Governor Siminalayi Fubara, praised the transparent management of HCDT funds, noting that the initiative has ensured better accountability and tangible results compared to the past.

“In previous years, community funds were not effectively utilised. What we are witnessing now is transparency and real impact,” she said.

The Chairman of the Senate Committee on Oil and Gas Host Communities, Senator Benson Agadaga, also lauded the initiative, stating that it has contributed to sustaining peace in the Niger Delta.

“The relative peace we see in the region today is largely due to the visible achievements of the PIA. Host communities now experience real development and are more cooperative,” he said.

TotalEnergies Upstream Nigeria Managing Director, Matthieu Bouyer, expressed pride in being among the first companies to implement the HCDT framework, revealing that over 500 projects across 60 communities have been identified under its plan.

“This initiative has created more than 1,000 jobs and will benefit over 30,000 people,” Bouyer stated, describing the Obagi Trust as “a model of what can be achieved when trust and policy work together.”

Chairman of the Obagi HCDT Board of Trustees, High Chief Dike Hopeson Dike, reaffirmed the community’s commitment to collaboration, adding that over 125 solar-powered boreholes have been provided, meeting about 70 per cent of local water needs.

“These projects are helping our people move from poverty to prosperity,” Dike said.

The Host Community Development Trust remains one of the key provisions of the Petroleum Industry Act, designed to foster inclusion, transparency, and sustainable peace between oil companies and their host communities.