Key Points

• Host community fund to ₦373bn drives 536 new projects.

• Oil firms including Shell, Chevron, Seplat comply with the PIA.

• NUPRC launches tighter oversight to improve transparency.

The Host Community Development Trust Fund in Nigeria has reached ₦373 billion. This is a big step forward for the federal government in its efforts to make the oil-producing regions more accountable and welcoming. The Petroleum Industry Act (PIA) set up the fund, and it is being funded by upstream oil and gas companies that work in the Niger Delta and other areas where oil and gas are produced.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said that the fund is now helping 536 community projects, including those in health, education, and infrastructure.

The host community fund of ₦373 billion helps pay for growth projects

Gbenga Komolafe, the CEO of NUPRC, said that the host community fund of 373bn shows that more people are following the PIA and that the industry is moving towards more sustainable community engagement.

Komolafe said during a policy review session in Abuja, “The fund has grown a lot in a short amount of time, and we are now seeing real projects on the ground.” “This project is building trust, giving power to local economies, and showing how shared wealth can help everyone.”

He says that the Commission has now set up and approved more than 130 Host Community Development Trusts, which cover both onshore and offshore assets. 57 upstream oil companies, such as Shell Petroleum Development Company (SPDC), Chevron Nigeria Limited, TotalEnergies, Seplat Energy, and ExxonMobil Nigeria, pay for these trusts.

People in the area are seeing real benefits

The host community fund of ₦373bn is already being used to build things in states like Rivers, Delta, Bayelsa, and Akwa Ibom. For example, the Egbema and Gbaramatu Trusts in Delta State have started projects worth more than 4.5 billion, such as building schools, solar-powered boreholes, and health centres.

The head of one of the local trusts in Bayelsa, Chief Kingsley Ogene, said the fund has given people hope again. “For decades, we saw oil taken from our land with little to show for it. “Now, these trusts are paying for real projects that our people can touch,” he said.

According to a report by the Punch news, Dr. Diran Fawibe of International Energy Services Limited and other energy experts said that if the fund is managed well, it could cut down on vandalism and unrest in oil communities.

Regulator tightens control to stop fund abuse

Komolafe said that NUPRC is making a digital system to keep an eye on how money is spent and make sure that projects are finished on time. He said, “Operators must file quarterly performance reports and financial statements,” and “non-compliance will attract regulatory sanctions.”

If the fund is managed in a clear way, analysts in the oil industry think it could help stabilise Nigeria’s oil-producing belts and show how the Petroleum Industry Act can be used in real life.