The Host Community Development Trust (HCDT) Board was constituted to ensure uniformity in the application of rules in the management and pursuit of developmental objectives in host communities as provided under the Petroleum Industry Act (PIA), 2021. the Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, has said.
Komolafe who spoke at the inauguration of the Host Community Development and Administration Trust Board of Trustees (BOT) Forum, said aside from other benefits, this was the primary reason that informed the idea of the Board.
The inauguration held at the Commission’s headquarters in Abuja was witnessed by top management staff of the Commission, Host Community leaders, settlors and stakeholders.
The CCE who inaugurated the forum said it became imperative because there was the need for not just a one-stop-shop for resolving host communities’ issues, but to provide a vehicle for the smooth administration of the host community provisions of the PIA.
He said the HCDT Board was another initiative of the Commission aimed at adding value to the successes recorded in the host Community provisions in the Act.
In compliance with Sections 232 and 235 of the PIA, which provides for the implementation of the Host Community Development Trust (HCDT), Komolafe said the NUPRC incorporated 103 Trusts.
“This is because of the Commission’s priority on social inclusion, which is one of the key objectives of the Host Community provisions under the PIA, with the belief that social inclusion is and will be the recipe for peace and harmony that will enhance the operations of the oil industry,” he explained.
Given the realisation that a peaceful and harmonious operating environment could enhance production in the host communities, the CCE said the Commission focused attention on developing host community regulations, among other key regulations the Commission has so far handled.
He said from the outset, the Commission had decided to implement the HostCom provisions in the PIA transparently.
For efficiency and effectiveness of the scheme’s implementation, he said the Commission partnered with an Original Equipment Manufacturer (OEM) to develop a transparent real-time digital portal/reporting system, known as HOSTCOMPLY, through which the administration of the scheme would be reported.
The HOSTCOMPLY portal, he pointed out, is a comprehensive solution designed to facilitate compliance with the Host Communities Development provisions of the Act, which functions include the incorporation application process, request for approvals, submission of reports and project monitoring.
Having learned from past attempts to implement this type of scheme in the country, the CCE said the key objective of the vital scheme was transparent implementation using a digital approach.
Also, he said for a seamless implementation and achievement of the intended objective, the Commission intends to ensure capacity building for BOT members to enable proper understanding and implementation of the initiative.
“By the time the scheme is fully implemented, all stakeholders should be able to follow progress most transparently,” he said.
To drive the transparency objective, he said the Commission invited the OEM development expert who designed the digital portal, Prof. Magnus Kpakol, the Executive Chairman of the Economic Growth and Development Centre, to share his knowledge and expertise with the Board members to ensure the provision for HostCom in the PIA was effectively realised.
In his opening remarks, the Executive Commissioner, Health, Safety, Environment and Community (HSEC), John Roland Tonlagha, said the Forum was a platform for engagement between the BOT, settlors and host communities.
Tonlagha explained that the Forum would enhance accountability and transparency since effective development requires careful planning and strategic decision-making.
“The Forum also serves as a space where stakeholders would collectively access the operationalisation of the Host Community Development Trust. So, through informed discussions and exchange of ideas, the BOT can make decisions that align with the goals and aspirations of the PIA for the Host Community Development Trust,” he said.
He expressed the hope that the Trust would operate within the ambits of the law and, through constructive dialogue facilitated by the HCDT Forum, deliver tangible results to the communities it serves.
The acting Director of Host Communities, Ejiro Ofondu, also gave a status report on the implementation of the HCDT.
In the report, she said by Thursday, February 22, 2024, about 35 settlors had sent their applications to the Commission for the incorporation of HCDT.
Out of about 160 of such applications so far received and attended to, about 111 have been approved for incorporation by the Corporate Affairs Commission (CAC).
Out of the 111 approved applications, she said 103 have completed the entire process and have been fully incorporated, with 52 so far funded.
Currently, she said 43 applications were still in the pipeline, while some were undergoing review, and some were under litigation.
