Oil and gas companies operating in Nigeria remitted a total of N57.07 billion to Host Community Development Trusts (HCDTs) in 2024, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed.
The remittance, representing three per cent of the companies’ actual annual operating expenditure for the preceding year, aligns with the requirements of the Petroleum Industry Act. With this latest payment, total contributions to the Host Community Development Trusts now stand at N65.15 billion, including N8.45 billion remitted in 2023.
According to the commission, 207 applications for HCDTs were received, out of which 154 trusts were approved, and 136 have been successfully registered with the Corporate Affairs Commission.
On project implementation, the report indicated that 32 fund managers have been approved to oversee disbursements, with 187 projects currently ongoing across the various trusts.
The NUPRC also highlighted ongoing work on its digital portal, HostComply, designed to support compliance tracking, fund allocation, reporting, and dispute resolution within the HCDT framework. However, key modules covering fund distribution matrices, conflict resolution, and ESG performance reporting are still under development.
“Significant progress has been made on HostComply. Data from the previous system has been migrated, and gaps are being progressively addressed. While some modules are operational, others such as dispute resolution and conflict management are still in development,” the commission noted.
Outstanding components include modules for fund managers, vendors, fines and penalties, ESG reporting, incident management, HCDT billing, sabotage value calculation, workflow approvals, and fund distribution matrices.
Reflecting on challenges encountered in the previous year, the commission stated that petitions and litigations delayed the incorporation of some HCDTs and the establishment of governance structures. Additionally, the delayed deployment of the HostComply portal hindered effective monitoring and stakeholder engagement.
The Host Community Development Trust framework, established under the Petroleum Industry Act 2021, aims to address the development needs of communities impacted by petroleum operations, promoting sustainable prosperity and peaceful coexistence between licensees and host communities.
In a separate update, the NUPRC reported that 361 contracts and procurements were carried out in 2024. Out of these, 170 projects were completed, one was terminated, while 190 remain ongoing.
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