Host Community Trust Powers Infrastructure Growth with ₦373bn Fund

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that the Host Community Development Trust (HCDT) fund has reached ₦373 billion as of October 13, 2025. This milestone reflects ongoing efforts to improve infrastructure and social services across oil-producing regions, with 536 development projects currently in progress

According to a statement by Eniola Akinkuotu, Head of Media and Strategic Communications at NUPRC, the fund comprises ₦125 billion and $168.9 million, contributed by oil companies in compliance with the Petroleum Industry Act (PIA) of 2021. Under Section 235 of the Act, companies—referred to as “settlors”—are required to allocate 3% of their annual operating expenditure from the previous year to a trust fund dedicated to their host communities.

Each settlor must work with host communities to appoint a Board of Trustees, which is registered with the Corporate Affairs Commission. The funds, held in banks with a minimum BBB credit rating, are used to support projects in education, healthcare, environmental protection, and infrastructure.

While NUPRC does not directly manage the funds, it ensures transparency and accountability through a digital platform called HostComply, which monitors project execution and fund disbursement in real time.

In September 2025, the Commission facilitated the commissioning of over 10 completed projects and launched more than 10 new ones under the Obagi Host Community Development Trust in Rivers State, operated by TotalEnergies. These projects, inaugurated in the Ogbogu community of Ogba/Egbema/Ndoni Local Government Area, were hailed as a major step forward in implementing the PIA’s host community provisions.

Completed initiatives include an 18-classroom two-storey school block, a remodeled 20-bed hospital with a diagnostic center, and upgrades to the Ogbogu Ultra-Modern Civic Centre. Additional developments include road pavements in Oboburu, a water bottling factory in Amah, gas skid installations, and school renovations in Erema and Akabuka.

Speaking at the event, NUPRC Chief Executive Gbenga Komolafe, represented by Executive Commissioner John Tonglagha, emphasized that these projects are designed to tackle challenges in education, healthcare, and employment. He also praised President Bola Tinubu for fostering a policy environment that encourages upstream investment.

Rivers State Deputy Governor Prof. Ngozi Odu, representing Governor Siminalayi Fubara, commended the transparent management of HCDT funds, noting that the current approach delivers tangible results compared to previous efforts.

Senator Benson Agadaga, Chair of the Senate Committee on Oil and Gas Host Communities, credited the initiative with helping to maintain peace in the Niger Delta, stating that visible development has reduced hostility in the region.

TotalEnergies Managing Director Matthieu Bouyer highlighted the company’s role in pioneering the HCDT mandate, with over 500 projects identified across 60 communities. He noted that the initiative has created more than 1,000 jobs and will benefit over 30,000 people.

High Chief Dike Hopeson Dike, Chairman of the Obagi HCDT Board of Trustees, reaffirmed the community’s commitment to collaboration. He revealed that over 125 solar-powered boreholes have been installed, meeting 70% of local water needs.

The Host Community Development Trust remains a cornerstone of the PIA, aimed at fostering inclusion, transparency, and long-term peace between oil companies and their host communities.