NUPRC Reaffirms Oversight Powers Over Host Community Funds Amid Success

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reaffirmed its sole oversight powers over host community funds, according to Oritsemeyiwa Eyesan, CEO of NUPRC.

Eyesan made the clarification during an engagement with the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja, where he emphasized that monitoring and controlling the management of host community development funds remains NUPRC's exclusive statutory domain.

Under the Petroleum Industry Act, oil and gas companies are mandated to contribute 3 percent of their Operating Expenditure (OPEX) of the preceding financial year to a Host Communities Trust Fund for the benefit of such communities. The HCDT has funded the construction of schools, hospitals, and other infrastructure, leading to an increase in crude oil production.

The NUPRC boss stated that they have registered 172 HCDTs and have been able to manage contributions by settlors. However, some HCDTs have been the subject of litigation due to disagreements regarding the composition of Boards of Trustees. To mitigate these operational disputes, the NUPRC is utilizing its Alternative Dispute Resolution Center (ADRC).