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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.
