The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disbursed a total of N200bn to 137 Host Community Trusts for the execution of 198 projects.
This was disclosed on Tuesday in a statement aimed at clarifying the alleged delays in funding development projects in host communities in Ibeno, Mbo and Esit Eket communities of Akwa Ibom State.
A report (Not by NewsNGR) claimed that the NUPRC is frustrating the funding of projects across host communities.
But the regulatory denied the allegation, saying that it is fully committed to the implementation of the Host Community Development Trust (HCDT) in line with Chapter 3 of the Petroleum Industry Act (PIA, 2021).
The NUPRC said the HCDT has been designed to ensure the objectives of fostering sustainable prosperity within the host communities as well as the provision of direct social and economic benefits from petroleum operations to host communities are well achieved.
The commission explained that it has been “Working assiduously to ensure that all host communities that fall within the ambits of the law benefit from the HCDTF and have 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 N200bn disbursed. 198 developmental projects are going on across host communities, Akwa Ibom communities inclusive. Some yet-to-be-funded Trusts are undergoing due diligence and various validation processes. “
The NUPRC clarified that the Ibeno, Mbo and Esit Eket communities are part of the beneficiaries of the N200bn released to host communities.
“The Commission reaffirms the commitment and ongoing efforts of the NUPRC in collaboration with the Oil and Gas operators(Settlors) in the region and beyond. We can confirm that the Ibeno, Mbo and Esit Eket communities are well covered in the HCDTs implementation process. Relevant Settlors have established Host Community Development Trusts for these communities, ensuring that funds are released and community development plans are actively underway.
“Funds have already been released to these trusts and many have commenced community development projects aimed at improving the quality of life for community members and entrenching shared prosperity,” NUPR affirmed.
The commission also listed notable efforts which include the establishment of Alternative Dispute Resolution centers in Bayelsa and Lagos at the NUPRC’s National Oil and Gas Excellence Center.
It revealed the “ADR mechanisms 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. To make for easy resolution of grievances for the ultimate peaceful coexistence of Settlors with the Host communities.
“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. We encourage the public to visit www.hostcomply.nuprc.gov.ng for information on host community development.
“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. This forum promotes transparency and accountability ensuring that community voices are heard at a higher level.”
According to the regulator, the settlors have successfully set up HCDTS for most of the host communities in Akwa Ibom state.
It stated that the trusts are structured to guarantee that the benefits of oil and gas operations are directly directed toward community development by engaging host communities in conducting Community Needs Assessments, which evolve into actionable Community Development Plans.
The NUPRC emphasised that community involvement ensures projects are relevant, sustainable, and genuinely beneficial. The regulator noted that the collaborative efforts foster a sense of ownership, inclusivity and contribute to the success achieved with several Host Community Development Trusts.
“These achievements 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,” NUPRC added.