Chief Executive Officer, Nigerian Upstream Regulatory Commission (NURC), Mr Gbenga Komolafe
Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced a major milestone in community-focused oil sector reforms, revealing that the Host Community Development Trust (HCDT) fund has grown to ₦373 billion as of October 13, 2025.
The disclosure was made in a statement issued on Monday by the Commission’s Head of Media and Strategic Communications. Eniola Akinkuotu.
The fund, he noted, consists of ₦125 billion and $168.9 million (approximately ₦248 billion), pooled from oil companies as mandated by law.
According to Akinkuotu, a total of 536 community development projects are currently underway across Nigeria’s oil-producing regions.
The HCDT is a direct outcome of the Petroleum Industry Act (PIA) 2021. Under Section 235, oil companies—referred to as “settlors”—are required to establish a Host Community Development Trust in every host community where they operate. Each settlor must contribute three percent of its annual operating expenditure from the previous year into a designated trust fund held by a BBB-rated financial institution.
The Act also mandates that a board of trustees, formed in consultation with the host community, oversee the fund and ensure the delivery of essential projects tailored to local needs—ranging from education and healthcare to infrastructure and environmental sustainability.
Akinkuotu clarified that while the NUPRC does not manage the funds directly, it tracks usage and compliance via HostComply, a digital dashboard designed to monitor progress and ensure transparency.
“In September alone, the Commission facilitated the completion and official handover of over ten major projects, with several others launched, under the Obagi HCDT in Rivers State,” Akinkuotu said.
These projects—implemented by TotalEnergies and located within OML 58—were formally commissioned between September 24 and 25 at Ogbogu community, Ogba Egbema Ndoni Local Government Area of Rivers State.
Highlights of the commissioned projects include:
A two-storey, 18-classroom block built to UBEC standards at Ogbogu Community
A fully remodelled Ogbogu Cottage Hospital with a 20-bed capacity and newly equipped diagnostic center
A 1,200-seat ultra-modern civic centre in Ogbogu
260 metres of asphalt road at Obe Road and 320 metres of reinforced concrete pavement at SDA Road in Oboburu
A fully functional bottled and sachet water production factory in Amah Community
Construction of administrative and security buildings and the procurement of a gas skid plant in Erema Community
Speaking at the commissioning, NUPRC Chief Executive Gbenga Komolafe—represented by Capt. John Tonlagha, Executive Commissioner for Health, Safety, Environment, and Community—said the projects address long-standing gaps in healthcare, education, and job creation.
“These initiatives are not just infrastructure—they’re building blocks for a more inclusive and equitable oil and gas sector,” Komolafe said.
“We urge host communities to take ownership and work hand-in-hand with upstream operators for the benefit of all.”
Rivers State Governor Siminalayi Fubara, represented by Deputy Governor Prof. Ngozi Odu, praised the transparency and efficiency of the Obagi HCDT, noting a sharp departure from past administrations where such funds were often misused.
“Unlike in the past, we are now seeing the impact where it truly matters,” she said.
Also present was Matthieu Bouyer, Managing Director of TotalEnergies Upstream Companies in Nigeria, who expressed pride in being the first operator to deliver fully on the HCDT mandate.
“This is a clear demonstration of what can be achieved when policy, purpose, and trust align,” Bouyer remarked.
The ₦373 billion fund and the expanding footprint of community projects mark a significant shift in how Nigeria’s oil wealth is being redirected—this time, directly into the hands of the communities that live with its daily realities.
