By Gold Jeremiah
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stepped up enforcement of the Host Community Development Trust (HCDT) provisions under the Petroleum Industry Act (PIA) 2021, directing operators and licensees in the sector to comply with the mandatory three per cent annual contribution to host community funds.
As part of efforts to strengthen transparency and accountability, the Authority also unveiled a digital portal designed to improve monitoring and administration of the scheme.
The disclosure was made during a Stakeholder Sensitisation Workshop on the implementation of the HCDT framework and the operationalisation of the HCDT Digital Portal held in Port Harcourt.
The Host Community Development Trust framework, established under the PIA, is aimed at ensuring that petroleum-producing communities benefit directly from oil and gas operations through social, environmental and economic development initiatives.
Representing the Authority Chief Executive, Mr Rabiu Umar, the Executive Director, Health, Safety, Environment and Community, Dr Mustapha Lamorde, said the newly introduced portal would support digital registration of trusts, project monitoring, compliance reporting, tracking of statutory contributions and real-time regulatory oversight.
According to him, the sensitisation workshop was organised to provide stakeholders with clearer guidance on the establishment and management of Host Community Development Trusts, as well as the obligations of operators and licensees under the law.
“With strong national expectations for the HCDT framework to move from policy to practical implementation, the workshop is expected to deepen understanding of governance responsibilities, trust fund administration, compliance requirements and grievance resolution mechanisms,” Lamorde said.
He further urged operators to comply fully with the mandatory three per cent contribution requirement to support sustainable development in host communities.
Chairman of the House of Representatives Committee on Host Communities, Mr Dumnamene Dekor, commended the NMDPRA for organising the engagement programme.
He noted that critical midstream assets such as pipelines, depots, terminals, processing plants and transportation infrastructure play a strategic role in Nigeria’s energy security, stressing that host communities should enjoy meaningful and lasting benefits from such operations.
Also speaking, the Director of Environmental Sustainability and Host Community at NMDPRA, Mrs Anne Omezi, said the stakeholder engagement would enhance transparency, collaboration and sustainable development within host communities affected by midstream activities.
“We are here to build mutual understanding, strengthen collaboration and create a shared vision for community development. Stakeholders must work together to ensure lasting benefits for host communities in the midstream oil and gas sector,” she said.
Meanwhile, a representative of one of the host communities in Rivers State, Chief Barry Mwara, described the sensitisation programme as enlightening, noting that it had provided valuable insight that would help communities better position themselves to benefit from midstream operations.
He also urged the NMDPRA to strengthen oversight to ensure that the funds are effectively managed and utilised for the intended developmental purposes.
