We’ve Release N97b, $149m Development Fund to Host Community Trusts – NUPRC

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said about 102 Host Community Development Trusts (HCDTs) have received N97 billion and $149 million as HCDT funds remitted by settlors.

Chidinma Nwabueze, the Senior Manager, Health, Safety, Environment and Community of NUPRC, disclosed this on Wednesday in Abuja at a Media Workshop.

The workshop was organised by the commission.

Nwabueze said that the commission facilitated the remittances of N97 billion and $149 million into the HCDTs fund account as at May 19.

The Petroleum Industry Act (PIA) requires oil exploration companies/settlors to allocate three per cent of their Operating Expenditure (OPEX) of previous year for their host communities’ development.

She said that the HCDT was incorporated and funded by the Settlors (Licencees) from the three per cent of the OPEX of the annual expenses from the preceding year.

Nwabueze said: “Currently, about 102 HCDTs have received in excess of N97 billion and $149 million as HCDT funds remitted by Settlors into the HCDT fund account.

“Within three years a lot of the HCDTs are completing projects.

“Last week we were in Bayelsa to commission 67 projects from Renaissance Energy Company Limited and in Rivers State to commission some other projects.”

She said that the commission had also been able to approve 167 applications fully issued as approval to incorporate.

She added: “Out of these, we have 146 fully incorporated HCDTs at the Corporate Affairs Commission (CAC) while 21 are under processing.

“Out of 146 fully incorporated HCDTs we have over 102 HCDTs account opened and funded to the tune of N97 billion and $149 million.”

Nwabueze said that the HCDT aligned completely with the objective of the NUPRC by promoting sustainable development of the upstream petroleum responses in Nigeria for sheer prosperity within host communities.

She said that it entrenched direct social and economic benefits from the petroleum operations to the communities, providing a framework for the establishment of peace between the dwellers and the Settlors.

According to her, the speedy execution of host community development regulation and incorporation of HCDT fund is to curb rampant community restiveness and provide conducive business environment for operations and shared prosperity to thrive.

Speaking on the timeline required to effectively incorporate HCDT, Nwabueze said that it must be incorporated prior to the application Field Development Plan (FDP) and commencement of the commercial operations for a petroleum mining license.

She said: “Three strategic stakeholders in HCDT are the regulator, charged with making regulations and providing oversight functions for implementation of developmental projects, and the settlors who provide the three per cent OPEX to fund the trust.

“The third one is the Board of Trustees, being the community members, nominated by the community dwellers to serve on the board, to manage and administer the HCDT fund.”

She said that though the host communities were funded through the three percent OPEX of the settlors, there are other sources of funds, namely donation, gifts, and grants, as well as profit, interest, and reserve funds.

“The three per cent OPEX is considered 100 percent when it enters the collection account and sub divided into 75 percent for capital project development and 25 per cent for investment,” she said.

Nwabueze, however, said that the NUPRC also developed innovative software and a one-stop-shop called HostComply.

She said that the software was for end-to-end reporting and monitoring HCDT activities to enable effective implementation of the HostCom provisions of the PIA.

(The Eagle Online)