PIA: NUPRC Incorporates 155 Host Community Trusts Across Niger Delta

…Host Communities Demand Share of 13% Oil Derivation Fund

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it has incorporated 155 Host Community Development Trusts (HCDTs) across oil-bearing communities in the Niger Delta as part of the implementation of the Petroleum Industry Act (PIA).

The Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, disclosed this during a town hall engagement with host community development trusts and settlors in Rivers State.

The meeting, held in Port Harcourt brought together regulators, oil companies, traditional rulers, and community representatives to review progress and challenges in the implementation of the PIA.

Represented by an Assistant Director in the Commission, Mr. Success Ikpe, Eyesan revealed that the Commission has also deployed a digital reporting and monitoring system known as “HostComply” to ensure transparency and compliance in the management of host community funds.

According to her, since the commencement of the PIA, the NUPRC has facilitated the incorporation of over 155 HCDTs, while more than 79 trusts have received the mandatory three percent of operational expenditure (OPEX) contributions from settlors.

She further disclosed that about 663 projects are currently being executed by various HCDTs across the region, targeting infrastructure development and livelihood improvement in host communities.

“The Commission has developed and deployed ‘HostComply,’ a digital reporting and monitoring portal that enables real-time tracking of trust activities, ensuring compliance and efficiency in the management of host community funds,” she stated.

Despite the progress recorded, Eyesan acknowledged that the Commission is grappling with several challenges, including governance and accountability concerns in the management of HCDT funds, delays in project execution due to bureaucratic bottlenecks, and community grievances over representation and resource allocation.

To address these issues, she outlined a series of proposed measures, including strengthening governance and transparency through full utilization of the HostComply portal, capacity building for HCDT board members and community leaders, and the establishment of independent monitoring teams to accelerate project implementation.

She also emphasized the need for enhanced stakeholder engagement, structured dispute resolution mechanisms, youth empowerment initiatives, and economic diversification beyond oil and gas.

“The success of HCDTs requires collective commitment from all stakeholders — government, traditional rulers, oil companies, and the communities themselves. The NUPRC remains dedicated to regulatory oversight, policy support, and technical assistance to ensure host communities thrive alongside the petroleum industry,” she said.

Host Communities Demand Derivation Fund Share
Meanwhile, the National President of Host Communities of Nigeria Producing Oil and Gas, Dr. Benjamin Style Tamaranebi, called on state governors to remit part of the 13 percent oil derivation fund to host communities.

Speaking at the same forum, Tamaranebi decried what he described as the politicisation of the derivation funds by state governments, arguing that the funds were meant to directly benefit oil-producing communities.

“Remember we have 13 percent derivation funds coming to the communities. That fund was not left for only the state governments, but for the development of host communities,” he said.

He maintained that host communities have historically agitated for fairness in resource allocation, noting that their struggles led to the establishment of the Niger Delta Development Commission (NDDC) and the Presidential Amnesty Programme.

“Now that the PIA is on board, we call on state governments to respectfully release part of the 13 percent derivation to the Trust to complement the Trust so that we can work together,” Tamaranebi added.

He also disclosed that the NUPRC has established a dispute resolution centre in Yenagoa, Bayelsa State, urging communities with grievances against oil companies or trust administrators to utilize the facility.

However, he cautioned HCDT committees against exceeding the statutory five percent administrative cost limit provided under the PIA.

“The Act made provision that 75 percent of the funds should go to community development projects, 20 percent for investments, while five percent is for administration. Most committees want to go beyond the five percent. If we tamper with the 75 percent, we deprive ourselves of development,” he warned.

Rivers Government Commends Initiative
In a goodwill message, the Permanent Secretary of the Rivers State Ministry of Energy and Natural Resources, Mr. James Ugochindu, represented by Mr. Sokariba Igwe, commended the NUPRC and Hostcom Projects Management and Advisory Konsult Ltd for organizing the engagement.

He noted that the initiative aligns with the Rivers State Government’s policy of equitable development across communities and expressed optimism that effective implementation of the PIA would deepen sustainable development and reduce tensions in oil-producing areas.

The town hall meeting ended with renewed calls for transparency, accountability, and collaboration to ensure that the objectives of the PIA translate into tangible development outcomes for host communities in the Niger Delta.