New Trust Scheme to Benefit Oil-Producing Communities

A new development trust scheme for oil-producing communities is expected to bring peace and stability to the Niger Delta, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said.

The Host Community Development Trust (HCDT), established under the Petroleum Industry Act, was the focus of a stakeholders’ workshop in Port Harcourt on Wednesday, where NMDPRA unveiled a digital portal to manage the process.

Rabiu Umar, the authority’s chief executive, said the goal of the trust is to reduce conflict and ensure steady development in areas hosting oil facilities.

“The goal is to promote peace, reduce conflict, encourage inclusion and ensure steady development in affected communities,” Umar said through a representative, Dr Mustapha Lamorde.

According to Umar, the PIA has fundamentally changed the relationship between oil companies and host communities by making communities direct beneficiaries of development projects.

Since the regulations came into effect, the agency has received numerous inquiries from community members, traditional rulers, civil society groups, lawmakers and operators, he added.

Umar said that trust, transparency and cooperation among all parties are essential for the scheme to succeed.

“This workshop is organised to provide clarity on how the HCDT will be set up, duties of trustees, operators’ and licensees’ obligations, and how the funds will be managed among others,” he said.

The newly launched HCDT Digital Portal is designed to improve accountability. It will handle trust registrations, document submissions, contribution tracking, compliance reporting and project monitoring, according to the NMDPRA boss.

“Compliance with the HCDT framework is not optional, but a statutory obligation. NMDPRA will continue to exercise its oversight responsibilities to ensure proper implementation,” Umar warned.

New Trust Scheme to Benefit Oil-Producing Communities — NMDPRA Building. Credit: Guardian Nigeria

Anne Omezi, NMDPRA’s director of environment management and host community, described the workshop as an important step toward empowering oil communities.

“The dialogue will help build understanding, strengthen cooperation and align everyone on a shared goal,” she said.

House of Representatives Committee Chairman on Host Communities, Dum Dekor, praised the initiative, noting that the PIA has transformed host community development from irregular corporate social responsibility into a legally backed obligation.

“It is important because communities hosting pipelines, terminals, depots and storage infrastructure must see practical and lasting benefits from the operators,” Dekor said.

“The Trust will deliver real projects such as schools, hospitals, clean water, roads and skill acquisition programmes for youths and women, as well as environmental care.”

Dekor urged oil companies to view compliance as a pathway to stability and long-term business success, while calling on communities to support the process, protect oil facilities and ensure fair distribution of benefits.

Author

Jimisayo Opanuga

Jimisayo Opanuga is a web writer in the Digital Department at News Central TV, where she covers African and international stories. Her reporting focuses on social issues, health, justice, and the environment, alongside general-interest news. She is passionate about telling stories that inform the public and give voice to underreported communities.