Fubara Calls for Transparency in Community Development Trusts

Governor Siminalayi Fubara of Rivers State has emphasized the importance of transparency and accountability in managing funds allocated to Community Development Trusts (HCDT) in the Niger Delta. His remarks came during the unveiling ceremony of three additional HCDTs by The Shell Petroleum Development Company of Nigeria Limited (SPDC), a significant operator in the region’s oil sector.

Addressing stakeholders at the event, Governor Fubara underscored the need for the proper management of resources earmarked for the development of oil-producing communities, as mandated by the Petroleum Industry Act (PIA). He highlighted that sustainable community growth hinges on prioritizing the welfare of the people and ensuring robust oversight of financial allocations.

The introduction of HCDTs, a provision under the PIA, requires oil exploration companies to allocate a percentage of their previous year’s operating expenditure towards community development. SPDC’s ongoing initiative has seen the inauguration of 31 HCDTs, out of a planned 33, across its operations in the Niger Delta.

“I appreciate Shell for your continued support in driving economic growth within our communities,” Governor Fubara expressed gratitude during his speech.

In his address, Mr. Osagie Okunbor, Managing Director of SPDC and Country Chair of Shell Companies in Nigeria, acknowledged the challenges posed by implementing new legislation like the PIA. He emphasized SPDC’s proactive engagement with over 300 communities to ensure a shared understanding and effective collaboration in achieving sustainable development goals.

Dr. Alice Ajeh, representing Mr. Okunbor at the event, reiterated that community development ultimately relies on the active participation and responsibility of local communities themselves.

Mr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), commended SPDC’s leadership in implementing the PIA’s HCDT provisions. He stressed the importance of robust implementation strategies in fostering long-term economic development and urged community leaders to support seamless oil and gas exploration efforts.

Representatives from NNPC Upstream Investment Management Services (NUIMS) echoed similar sentiments, highlighting the necessity for collaboration among stakeholders to ensure peaceful coexistence and mutual benefit. They commended the prompt utilization of PIA instruments by host communities and emphasized the importance of dialogue in resolving conflicts and grievances.

In conclusion, the chairpersons of the newly inaugurated HCDTs expressed gratitude for the confidence placed in them and pledged to uphold transparency and accountability in their roles as trustees.

The event marked a significant step towards enhancing community development initiatives in the Niger Delta, signaling a commitment from industry stakeholders to promote sustainable growth and prosperity in the region.