The Nigerian Upstream Petroleum Regulatory Commission (NUPRC has said that it is operating the approved Host Community Development Trust transparently as provided by the Petroleum Industry Act, 2021.
The Head of Public Affairs and Corporate Communications of the Nigerian Upstream Petroleum Regulatory Commission, Olaide Shonola said this at the sidelines of Nigerian National Petroleum Company Limited (NNPCL) Energy Relations Stakeholder Engagement, 2024 held in Abuja.
Shonola who described the HCDT as a catalyst for development and inclusivity said that the PIA played a crucial role in the transformation of issues around host communities and producers.
The PIA mandates oil companies to contribute three per cent of their annual operating expenditure towards developing their Host Communities.
The NUPRC has midwifed the incorporation process which has resulted in the full incorporation of 137 HCDTs, the commission said.
NewsNGR had reported that the Commission Chief Executive of the NUPRC Gbenga Komolafe disclosed that the commission has facilitated the disbursement of a total of N200bn to 137 Host Community Trusts for the execution of 198 projects.
Similarly, the Nigerian National Petroleum Company /Mobil Producing Nigeria (NNPC/MPN) Joint Venture has disbursed over N36bn to its EMOIMEE Host Community Development Trust (HCDT) in Akwa Ibom State.
“The PIA has transformed NUPRC greatly. It has helped us, particularly the Host Community Development Trust (HCDT) that we are talking about, with the PIA, we have been able to make it as transparent as possible,” Shonola said.
Shonola said another progress recorded by the NUPRC is the rise in the number of active rigs.
She said, “We have recorded huge successes, like the rig disposition in the country. Before now, the activities were low, probably because of what was going on in the sector, but as we speak, we have 31 active rigs that are in operation. That is just one of the achievements that we have recorded.
“We have also been able to move most of our operations to the digital space. Technology-wise, this is just to encourage transparency in all that we do.
“And NUPRC as a regulator, we are able to pride ourselves on the fact that we are business enablers. We try to see how other stakeholders fare. We operate an open-door policy. This we do through regulations.”
Shonola said the commission operates in line with the PIA 2021, adding “As much as possible, we work by the regulations and we promote professionalism. As a regulator, we make things happen for operators in the industry.”
On the activities of the commission in 2025, the NUPRC spokesperson said the commission is aiming to get better as a regulator.
She added, “We are hoping to help in the upstream sector still in line with the PIA to see how we can enable more business and increase crude oil production and also bring the aspiration of the presidency to reality.
“On the bid rounds, the NUPRC is trying to make it as transparent as possible.”