The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Thursday revealed that not less than 163 Host Communities Development Trusts (HCDTs) had been incorporated nationwide under the Petroleum Industry Act (PIA).
The commission stated that billions of naira had already been remitted to their accounts, with over 1,100 development projects ongoing and more than 200 projects commissioned across the Niger Delta.
The development was disclosed during the inauguration of the Board of Trustees (BoT) of Petroleum Mining License (PML) 66 HCDT by IngentiaEnergies Limited in Port Harcourt.
Speaking at the event, Assistant Director, Host Communities Development and Administration at NUPRC, Kingsley Ehiaguina, described the HCDT framework as one of the most transformative provisions of PIA, saying it has begun to change the development narrative of oil-bearing communities.
Ehiaguina congratulated Ingentia Energies Limited for successfully completing the process leading to the inauguration of the board, despite earlier challenges that delayed the exercise.
According to him, the inauguration of PML 66 board demonstrates that the PIA framework is delivering results through collaboration between operators and host communities.
He said, “Since the implementation of the HCDT, 163 HCDTs have been incorporated. Billions of naira have been remitted into the various accounts, over 1,100 projects are ongoing across the Niger Delta and we have commissioned over 200 projects. I can tell you that the PIA HCDT framework is working. Today is another testament.”
Ehiaguina said unlike previous intervention models, PIA placed the responsibility for determining development priorities directly in the hands of host communities.
He urged the newly inaugurated trustees to use the opportunity responsibly by ensuring transparency, accountability, and sustainable development rather than pursuing personal interests.
Ehiaguina stated, “The ownership of your destiny has been committed into your hands. The destiny and posterity of your communities are now in your hands.
“Let posterity remember your tenure for transformational projects, roads, hospitals and improved livelihoods.”
He charged the board to immediately constitute the Management Committee and Advisory Committee as required by law to ensure the smooth operation of the trust.
Managing Director and Chief Executive Officer of Ingentia Energies Limited, Charles Odita, described the inauguration as a major milestone in strengthening the relationship between the company and its host communities.
Odita said the trust would accelerate development because the communities themselves would determine how funds accruing from the statutory three per cent contribution would be utilised.
He stated, “With the inauguration of this trust, there will be a jump-start to the impact of our operations on the communities.
“Under the Petroleum Industry Act, the government has mandated operators to set aside three per cent of the previous year’s operating expenditure for the Host Community Development Trust, and it is the trust that determines what happens with the funds.
“This is going to be a major game changer for the accelerated development of the communities.”
Consultant to the project, Dr. Godwin Minima of Godifem Consults Limited, said the successful inauguration followed months of stakeholder engagement, sensitisation, and dispute resolution among the benefiting communities.
Minima stated that the three host communities had suffered years of neglect and underdevelopment, making the establishment of the trust particularly significant.
He stated, “In all honesty, I have worked across many communities in the Niger Delta, but these communities need serious developmental interventions.
“We conducted detailed needs assessments involving women, youths, traditional rulers and other stakeholders before developing a five-year Community Development Plan in line with the PIA.”
In his acceptance speech, the newly inaugurated Chairman of the Board of Trustees, Sunday Jonathan, pledged prudent management of the trust fund and promised that members of the board would not engage in personal enrichment.
Jonathan stated, “We know the sufferings of our people. We know the poor environmental conditions and low living standards.
“We pledge that as a board, we will not use our offices for personal gain but will ensure every kobo entrusted to us is used to improve the lives of our people.”
Jonathan appealed to Ingentia Energies to go beyond the statutory three per cent contribution, where possible, by supporting additional development initiatives capable of improving living conditions and strengthening the relationship between the company and its host communities.
Blessing Ibunge
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