PIA: Oil Firms Allocate N80bn, $150m to Host Communities Development Trusts Over Two Years
Oil companies have allocated N80 billion and $150 million to Host Communities Development Trusts (HCDTs) in compliance with the Petroleum Industry Act (PIA) 2021 over the past two years. This was disclosed by High Chief (Dr) Style Benjamin Tamaran-Ebi, the National Chairman of Host Communities of Nigeria Producing Oil and Gas, during a Town Hall meeting on Friday.
Tamaran-Ebi revealed that about 70 out of 167 HCDTs have benefited from the 3% contribution amounting to over $150 million for the years 2021-2022. The announcement was made at a Town Hall meeting held at Watbridge Hotels in Uyo, Akwa Ibom State, organized by the Nigerian Upstream Petroleum Regulatory Commission in collaboration with HOSTCOM Project Management and Advisory Konsult Ltd, the Host Communities Development Board of Trustees, and Settlors for Akwa Ibom and Abia states.
“The funds are going directly to the communities for sustainable development, and with transparency over the next five years, there will be significant transformation in various communities,” Tamaran-Ebi said. “This funding is just for 2021-2022, and the 2023 funds are still expected. We urge the communities to protect these projects so that the government can entrust more resources to them.”
Delivering the keynote address, the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission, Engr. (Dr) Gbenga Komolafe, praised the participants for attending the event. Represented by the Eket Coordinator of NUPRC, Mr. Etukudo Williams, Komolafe disclosed that the commission had approved the incorporation of 167 HCDTs, with 124 fully incorporated with the Corporate Affairs Commission and 70 accounts already funded.
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Komolafe also mentioned that the commission had engaged 31 competent fund managers to invest the funds for HCDTs, and some Community Trusts have begun the process of engaging with these fund managers.
The allocation of these funds is expected to drive sustainable development and significantly transform the host communities, enhancing their socioeconomic conditions and promoting long-term growth.
