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NMDPRA Moves to Enforce Host Community Fund Compliance

The Nigerian Midstream and Downstream Petroleum Regulatory Authority has stepped up efforts to ensure oil and gas operators comply with the Host Community Development Trust provisions of the Petroleum Industry Act 2021.

The agency announced this during a stakeholders’ sensitisation workshop on the implementation of the Host Community Development Trust framework and the launch of its digital portal in Port Harcourt.

Representing the Authority Chief Executive, Mr Rabiu Umar, the Executive Director, Health, Safety, Environment and Community, Mustapha Lamorde, said the newly introduced digital portal would improve transparency, accountability, and monitoring of host community funds.

According to him, the platform will enable digital registration of trusts, project tracking, compliance reporting, monitoring of statutory contributions, and real-time regulatory oversight.

Lamorde stressed that operators and licensees must comply with the mandatory three per cent annual contribution to host communities as stipulated under the Petroleum Industry Act.

Also see: NDDC Managing Director Ogbuku Pushes for Reforms

He explained that the workshop was organised to educate stakeholders on the establishment and management of Host Community Development Trusts, governance responsibilities, reporting obligations, and grievance resolution procedures.

Also speaking, Chairman of the House of Representatives Committee on Host Communities, Dumnamene Dekor, praised the NMDPRA for organising the forum, noting that communities hosting pipelines, depots, terminals, and other petroleum infrastructure deserve meaningful and lasting development benefits.

The Director of Environmental Sustainability and Host Community at NMDPRA, Anne Omezi, said the initiative would strengthen collaboration between regulators, operators, and host communities while promoting sustainable development in the oil and gas sector.

A community representative from Rivers State, Barry Mwara, described the workshop as enlightening, saying the knowledge gained would help communities better position themselves to benefit from petroleum operations.

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