NUPRC Registers 172 Oil Host Community Trusts Amid Intensified Enforcement of 3% Levy

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has registered 172 Host Communities Development Trusts (HCDTs) established by oil and gas companies under the Petroleum Industry Act.

NUPRC's Chief Executive, Mrs Oritsemeyiwa Eyesan, said that so far, they have managed contributions from oil companies, with some trusts already funding critical infrastructure in host communities.

The law requires oil companies to contribute three per cent of their operating expenditure to the trusts each year. According to Mrs Eyesan, this contribution has improved relations between oil-producing communities and operators, reduced tensions, and contributed to increased crude oil production.

The NUPRC is working to resolve disputes over some trusts, particularly disagreements over board composition. The commission's Alternative Dispute Resolution Centre has played a key role in addressing grievances between host communities and petroleum operators.