A statement by NUPRC’s Head, Media and Strategic Communications Eniola Akinkuotu, said the fund comprises N125bn and $168.9m.
Daily Trust reports that section 235 of the Petroleum Industry Act of 2021, mandates settlors (oil companies) to incorporate Host Community Development Trust for the benefit of host communities where they operate.
The HCDT requires oil companies to deposit 3% of their operating expenditures of the preceding financial year into a trust fund which will be housed in a bank with BBB rating.
The PIA further stipulates that the settlor shall for the purpose of setting up the trust, in consultation with the host communities, appoint a board of trustees which shall be registered by the Corporate Affairs Commission as a corporate body.
The oil company then undertakes a NEEDS assessment that will metamorphose into the community development plan for the purpose of determining the projects that will be executed.
The fund is often dedicated to community development projects spanning infrastructure, education, healthcare, and environmental protection.
It gives communities a sense of ownership and is expected to reduce incidents of sabotage on oil facilities like pipeline vandalism, ensures the communities receive direct benefits from petroleum operations like social economic, educational development, empowerment of youth and overall reduction of restiveness in the Niger Delta region.
While the NUPRC does not have direct access to the funds, it monitors the fund through a dashboard known as HostComply. The Commission also monitors the implementation of the fund as mandated by the extant laws.
The statement added that the NUPRC last month facilitated the delivery of over 10 life-changing projects and the flag-off of more than 10 others under the Obagi Host Community Development Trust (HCDT) in Rivers State, operated by TotalEnergies.
“These projects were officially handed over to the communities hosting OML 58 during a two-day project commissioning and flag-off ceremony held from September 24–25, 2025, at Ogbogu Community in Ogba Egbema Ndoni Local Government Area of Rivers State,” the NUPRC said.
It said the milestone marks a defining moment in the implementation of the HCDT provisions under Section 235 of the Petroleum Industry Act (PIA) 2021 and stands as a testament to the NUPRC’s commitment to delivering on its mandate.
“The projects delivered include demolition and construction of two-storey building classroom blocks with 18 fully furnished standard classrooms size of 56 square metres UBEC standard at Ogbogu Community, Ogba Egbema Ndoni LGA; remodelled Ogbogu Cottage Hospital with 20 beds capacity and a new newly constructed diagnostic centre and revatalisation and infrastructure upgrade of 1200 capacity Ogbogu Ultra Modern Civic Centre in Ogbogu community, Ogba Egbema Ndoni LGA.”
“Others are fully constructed 260 metres asphalt pavement at Obe Road, Oboburu Community, Ogba Egbema Ndoni LGA and fully constructed 320 metres reinforced concrete pavement at SDA Road, Oboburu Community in Ogba Egbema Ndoni LGA.”
Speaking during the handover ceremony, the Commission Chief Executive, Engr. Gbenga Komolafe, represented by the Executive Commissioner, Health, Safety, Environment, and Community, Capt. John Roland Tonglagha, stated that the projects will address issues related to basic education, healthcare, employment, and more.
He encouraged host communities to take ownership of the infrastructure and collaborate with upstream operators to grow the oil industry and deliver national prosperity.
The Senate Committee Chairman on Oil and Gas Host Communities, Senator Benson Agadaga, noted that host communities are now reaping the dividends of the PIA’s successful implementation. He emphasised that peace in the Niger Delta would help the Commission meet its production target of over two million barrels per day.
He said, “This is a challenge to other HCDTs to do the same because the little peace we are seeing today in the Niger Delta is because of the achievements of the PIA, and the host communities are no longer as hostile as before.”
The Managing Director of TotalEnergies Upstream Companies in Nigeria, Matthieu Bouyer, expressed pride in being the first to deliver on the HCDT mandate. He said the speed of the project delivery reflects the company’s commitment to sustainable economic development in host communities.
He said, “We are one of the first, if not the first, International Oil Companies to create and fund the Trust two years ago, which of course, is the Obagi HCDT. Within the community development plan, there are more than 500 projects currently identified, touching more than 60 communities.”
