By Bassey Udo
Accruals under the Host Community Development Trust (HCDT) Fund climbed to about N373bn as of October 13, 2025, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed.
The Commission which gave details of the accruals in the Fund said in a statement in Abuja on Monday that it comprises N125bn in Naira denomination and $168.9m in dollars.
Section 235 of the Petroleum Industry Act (PIA) 2021 mandated oil companies, otherwise referred to as settlors, in the Nigerian Delta region, to incorporate Host Community Development Trust for the deposit of 3% of their operating expenditures of the preceding financial year for the benefit of host communities where they operate.
The HCDT law requires the deposit to be warehoused in a bank with BBB rating.
The PIA further stipulates that the settlors, for the purpose of setting up the trust, shall in consultation with the host communities, appoint a board of trustees to be registered by the Corporate Affairs Commission as a corporate body.
While the oil company was mandated to undertake a NEEDS assessment that would metamorphose into the community development plan to determine the projects that would be executed, a Board of Trustees and a Management Committee made up of representatives of the community would oversee the trusts to ensure community involvement in development efforts.
Also, the HCDT, which was conceived to give communities a sense of ownership, stipulated that the fund be dedicated to community development projects spanning infrastructure, education, healthcare, and environmental protection, to reduce incidents of sabotage on oil facilities and other vices like pipeline vandalism, ensure the communities received direct benefits from petroleum operations like social, economic, educational development, empowerment of youth and overall reduction of restiveness in the Niger Delta region.
Although the apex upstream petroleum industry regulator, the NUPRC, does not have direct access to the funds, the extant laws mandated it to monitor the management and implementation of the fund through a dashboard known as HostComply.
Obagi Pilot Phase
In the latest monitoring report released on Monday in Abuja, the Commission said it 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, last month in line with the provisions of the PIA.
The Commission said 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.
This milestone, the Commission noted, not only marked a defining moment in the implementation of the HCDT provisions under Section 235 of the Petroleum Industry Act (PIA) 2021, but also testifies to the NUPRC’s commitment to delivering on its mandate.
The projects delivered, the Commission said, included the demolition and construction of two-storey building classroom blocks with 18 fully furnished standard classrooms size of 56 square metres UBEC standard at Ogbogu Community, Ogba Egbema Ndoni LGA; remodelled Ogbogu Cottage Hospital with 20 beds capacity and a new newly constructed diagnostic centre and revitalisation and infrastructure upgrade of 1200 capacity Ogbogu Ultra Modern Civic Centre in Ogbogu community, Ogba Egbema Ndoni LGA.
Others projects included fully constructed 260 metres asphalt pavement at Obe Road, Oboburu Community, Ogba Egbema Ndoni LGA and fully constructed 320 metres reinforced concrete pavement at SDA Road, Oboburu Community in Ogba Egbema Ndoni LGA.
The Commission said the HCDT also delivered the construction of Amah Bottling Water Factory, Amah Community, Ogba Egbema Ndoni LGA, 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, Ogba Egbema Ndoni LGA; 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, it noted, were developed based on the needs and priorities defined by the communities themselves, in line with the Host Communities provisions of the PIA, 2021.
Speaking during the handover ceremony, the Commission Chief Executive, Engr. Gbenga Komolafe, represented by the Executive Commissioner, Health, Safety, Environment, and Community, Capt. John Roland Tonglagha, said the projects would 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 he noted 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 were now reaping the dividends of the PIA’s successful implementation.
He emphasised that peace in the Niger Delta would help the Commission meet its production target of over two million barrels per day.
“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 TotalEnergies is one of the first, if not the first, International Oil Companies to create and fund the Obagi HCDT two years ago,
He said within the community development plan there were 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 were 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, adding that he was confident the projects would play a key role in transitioning beneficiaries from poverty to prosperity.
“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,” he said
