Amid reports over alleged delays in funding development projects in host communities in Akwa Ibom State, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Tuesday reaffirmed its commitment to fully implement the Host Community Development Trust (HCDT) in line with relevant provisions of the Petroleum Industry Act (PIA, 2021).
The HCDTF was established to foster sustainable prosperity within the host communities as well as the provision of direct social and economic benefits from petroleum operations to host communities.
But the NUPRC expressed concern over recent reports about delays in funding development projects in host communities in Akwa Ibom State, assuring that it has been working assiduously to ensure that all host communities within the ambits of the law benefit from the HCDTF.
The Head, Public Affairs & Corporate Communication, Mrs Olaide Shonola, said in a statement in Abuja on Tuesday that the Commission has since established mechanisms to safeguard the funds, while ensuring accountability and transparency in the disbursement and management.
“It is worth mentioning that NUPRC has diligently superintended the incorporation process which has resulted in the full incorporation of one hundred and thirty-seven (137) HCDTs with over 200 billion naira disbursed,” Mrs Shonola clarified in a statement.
She said 198 developmental projects were ongoing across host communities, Akwa Ibom communities inclusive, adding that some yet-to-be-funded Trusts were undergoing due diligence and various validation processes.
Consequently, she said the Commission was collaborating with the Oil and Gas operators (Settlors) in the region and beyond, confirming that the Ibeno, Mbo and Esit Eket communities in Akwa Ibom were well covered in the HCDTs implementation process.
Also, she said relevant Settlors have established Host Community Development Trusts for these communities, ensuring that funds were released and community development plans actively underway.
Highlighting the key achievements, the Spokersperson said apart from significant strides in incorporating 137 Host Community Development Trusts across the region with over N200 billion disbursed to the trusts, a total of 198 projects have been initiated, focusing on various aspects of community development, including education, healthcare infrastructure, and economic empowerment.
Besides, she the Commission has established Alternative Dispute Resolution centres in Bayelsa and Lagos at the NUPRC’s National Oil and Gas Excellence Centres.
The ADR mechanisms, she explained, include mediation and arbitration, providing a structured process for resolving conflicts without resorting to litigations. “The ADR also supports the amicable and efficient resolution of disputes, preserving relationships and reducing the time and cost associated with legal proceedings,” Mrs Sonola said.
Besides, the ADR would make for easy resolution of grievances for the ultimate peaceful coexistence of Settlors with the Host communities.
In addition, Mrs Sonola disclosed that the NUPRC has launched the HostComply portal, an industry data automation portal for warehousing of all HCDT implementation and operationalization processes and data for ease of access, inclusivity, fairness, accountability, transparency and compliance with regulation and the law.
While encouraging the public to visit www.hostcomply.nuprc.gov.ng for information on host community development, Sonola said the Commission initiated the Host Community Development Trusts Forum to meet with community representatives through its HCDT trustees to address broader issues and grievances ensuring continuous dialogue between host communities and the operators.
The forum, she said, would promote transparency and accountability and ensuring that community voices were heard at a higher level; establish Host Community Development Trusts, with relevant Settlors successfully setting up HCDTS for most of the host communities in Akwa Ibom state.
These trusts, she pointed out, were designed to ensure that the benefits of oil and gas operations were directly channeled to community development through the involvement of host communities in the conduct of Community Needs Assessment, which metamorphose into the Community Development plan for implementation.
The involvement of communities, she said, would ensure that projects were relevant, sustainable, and beneficial to the community.
“These collaborative efforts foster a sense of ownership and promote inclusivity leading to successes recorded already with some of the HCDTs,” she said.
On Funding and Development Initiatives, Mrs Sonola said funds have already been released to these trusts, while many have commenced community development projects aimed at improving the quality of life for community members and entrenching shared prosperity.
These achievements, she noted, underscore the commitment of the Commission and Settlors to the sustainable development of host communities.
“We remain dedicated to fostering a mutually beneficial relationship between Settlors and their host communities and ensuring that the benefits of oil and gas operations are equitably shared.
“Consequent to the achievements made, the claims in the media that no progress is being made are not only false, but unfounded.
“We encourage all stakeholders, including community members and operators, to maintain open lines of communication with the NUPRC,” she said.
She urged parties having concerns about funding or implementation of projects to engage directly with the Commission for resolution rather than resorting to public statements that may misinform or escalate tensions.
