Sopuruchi Onwuka

Government’s intervention in development of petroleum industry host communities have continued to generate greater dividends for the people as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) declares that the Host Community Development Trusts (HCDT) managing industry intervention in the area have mopped cumulative N373 billion in funding as at October 13.

The NUPRC said in a statement that the fund comprises N125 billion and $168.9 million.

The regulatory agency which monitors the administration of the funds also stated that the HCDTs are driving some 536 community projects are ongoing simultaneously.

Section 235 of the Petroleum Industry Act of 2021, mandates oil companies to incorporate Host Community Development Trust for the benefit of host communities where they operate. And the HCDT requires oil companies to deposit 3% of their operating expenditures of the preceding financial year into a trust fund which will be housed in a bank with BBB rating.

The PIA further stipulates that the company setting up the HCDT shall consult with the host communities to appoint and register board of trustees with the Corporate Affairs Commission as a corporate body.

The oil company then undertakes a NEEDS assessment that will metamorphose into the community development plan for the purpose of determining the projects that will be executed.

The fund is often dedicated to community development projects spanning infrastructure, education, healthcare, and environmental protection.

It gives communities a sense of ownership and is expected to reduce incidents of sabotage on oil facilities like pipeline vandalism, ensures the communities receive direct benefits from petroleum operations like social economic, educational development, empowerment of youth and overall reduction of restiveness in the Niger Delta region.

These trusts are overseen by a Board of Trustees and a Management Committee, ensuring community involvement in development efforts.

While the NUPRC does not have direct access to the funds, it monitors the fund through a dashboard known as HostComply as mandated by the laws.

In line with the PIA, the NUPRC last month facilitated the delivery of over 10 life-changing projects and the flag-off of more than 10 others under the Obagi Host Community Development Trust (HCDT) in Rivers State, operated by TotalEnergies.

These projects were officially handed over to the communities hosting OML 58 during a two-day project commissioning and flag-off ceremony held from September 24–25, 2025, at Ogbogu Community in Ogba Egbema Ndoni Local Government Area of Rivers State.

The projects delivered include reconstruction of two-storey building classroom blocks with 18 fully furnished standard classrooms size of 56 square metres UBEC standard at Ogbogu Community; remodeling of Ogbogu Cottage Hospital with 20 beds capacity and a new newly constructed diagnostic centre; and revitalization and infrastructure upgrade of 1200 capacity Ogbogu Ultra Modern Civic Centre in Ogbogu community, all in Ogba Egbema Ndoni LGA.

Others are fully constructed 260 meter asphalt pavement at Obe Road, Oboburu Community; and fully constructed 320 meter reinforced concrete pavement at SDA Road, Oboburu Community in Ogba Egbema Ndoni LGA.

The HCDT also delivered the construction of Amah Bottling Water Factory, Amah Community, with a production capacity of 1500 bottles per hour and satchet water machine with a capacity of 2000 per hour; construction of admin and security buildings, procurement of Gas Skid Plant in Erema Community; renovation, procurement and installation of student writing desk and other modern facilities at Akabuka South Primary School and renovation; procurement and installation of student writing desk and other modern facilities at Akabuka North Primary School.

These projects, according to the NUPRC, were developed based on the needs and priorities defined by the communities themselves in line with the Host Communities provisions of the PIA, 2021.

This milestone marks a defining moment in the implementation of the HCDT provisions under Section 235 of the Petroleum Industry Act (PIA) 2021 and stands as a testament to the NUPRC’s commitment to delivering on its mandate, the NUPRC stated.

The Commission Chief Executive at the NUPRC, Engr. Gbenga Komolafe, represented by the Executive Commissioner, Health, Safety, Environment, and Community, Capt. John Roland Tonglagha, stated that the projects will address issues related to basic education, healthcare, employment, and more.

He encouraged host communities to take ownership of the infrastructure and collaborate with upstream operators to grow the oil industry and deliver national prosperity.

The NUPRC boss also appreciated President Bola Tinubu for his strong commitment and initiatives, which have created an environment conducive to new investments in the upstream sector.

The Governor of Rivers State, represented by Deputy Governor, Professor (Mrs) Ngozi Nma Odu, expressed delight over the timely delivery of the projects by the Obagi HCDT. She noted that in previous administrations, “Funds were sent to communities but were not fully utilised the way it is now.”

In his remarks, the Senate Committee Chairman on Oil and Gas Host Communities, Senator Benson Agadaga, noted that host communities are now reaping the dividends of the PIA’s successful implementation. He emphasized that peace in the Niger Delta would help the Commission meet its production target of over two million barrels per day.

He said, “This is a challenge to other HCDTs to do the same because the little peace we are seeing today in the Niger Delta is because of the achievements of the PIA, and the host communities are no longer as hostile as before.”

The Managing Director of TotalEnergies Upstream Companies in Nigeria, Matthieu Bouyer, expressed pride in being the first to deliver on the HCDT mandate. He said the speed of the project delivery reflects the company’s commitment to sustainable economic development in host communities.

He said, “We are one of the first, if not the first, International Oil Companies to create and fund the Trust two years ago, which of course, is the Obagi HCDT. Within the community development plan, there are more than 500 projects currently identified, touching more than 60 communities.”

He described the Obagi HCDT as a shining example of what is possible when trust and policy are aligned. “I am proud to support this project, which has created more than 1,000 jobs and will impact over 30,000 people,” he added.

Also, the Chairman of the Obagi HCDT Board of Trustees, High Chief Dike Hopeson Dike, assured the Commission, TotalEnergies, and other stakeholders of the communities’ continued cooperation. He noted that the projects will play a key role in transitioning beneficiaries from poverty to prosperity.

He said, “In less than one year, we have given our people over 125 units of 5,000-litre solar boreholes, and as of today, we have solved over 70% of our water problem.”