The Nigerian upstream Petroleum regulatory commission, NUPRC, has built an industry sophisticated, digital automated platform for reporting and monitoring the Host Community Development Trust in accordance with the HostCom provisions of the Petroleum Industry Act.
Speaking at the hostcom sensitization workshop on implementation of the Host Communities Development Trusts in Abuja, the commission revealed that the portal will aid in stakeholders fulfilling their obligations to host communities and promote accountability and
transparency in the management of the Trust.
Section 240 (2) of the Petroleum Industry Bill Stipulates that host communities in the Niger delta are expected to benefit three percent from an entity’s actual yearly operating expenditure of the preceding financial year on upstream, midstream and downstream sectors.
All contributions are to be deposited in a trust fund for host communities.
According to the draft of the PIB, the trust fund enhances peace and cordial relations between oil companies and host communities.
To give meaning and intent to the spirit of the Bill, the commission has now developed an automated platform to ensure transparency between the settlors and host communities.
The Commission also reveals that it has successfully approved seventy-five Host Community Development Trusts out of which forty-one have been fully incorporated by the Cooperate Affairs Commission.
The establishment of the HCDT will create a more equitable distribution of the industry’s benefits and reduce the social and economic disparities in the country.
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