Photo caption: NUPRC logo
The Nigerian Upstream Petroleum Regulatory Commission has said more than 1,100 projects are currently being executed across the Niger Delta under the Host Communities Development Trust framework established by the Petroleum Industry Act.
The Assistant Director, Host Community Development Affairs, NUPRC, Kingsley Ehiaguina, disclosed this on Thursday during the inauguration of the Board of Trustees of the PML 66 Host Communities Development Trust by Ingentia Energies Limited in Port Harcourt.
The trust comprises three communities in Ahoada West Local Government Area of Rivers State — Egbolom, Omelema and Ahoada I.
The Petroleum Industry Act, which came into effect in 2021, provides the legal, governance, regulatory and fiscal framework for Nigeria’s petroleum industry. It also established the Host Communities Development Trust to ensure oil-producing communities benefit directly from petroleum operations by identifying and implementing projects that address their development needs.
Speaking at the event, Ehiaguina said the inauguration marked another milestone in the implementation and operationalisation of the HCDT framework.
“We are so delighted to be here today at this inauguration of the PML 66 HCDT. It is a testament to the implementation and the operationalisation of the Host Community Development Trust.
“It is a transformational initiative that has the tendency and the potential to turn our host community into a wonder, and the gains have already been recorded since the implementation of the HCDT.
“Since the implementation of the HCDT, 163 HCDTs have been incorporated, and I can tell you that billions of naira have been remitted into the various accounts, and over 1,100 projects are ongoing across the Niger Delta.
“We have commissioned over 200 projects. I can tell you that the PIA and the HCDT framework are working.
“So today is another testament to what we can achieve when we collaborate, when we are united between the settlor (company) and our host community,” Ehiaguina stated.
He commended Ingentia Energies Limited for its commitment to implementing both the letter and spirit of the Petroleum Industry Act.
Addressing the trustees, he said, “From the NUPRC, we’ll ensure that everything that you own as your right is given to you by ensuring that the company pays its three per cent statutory contribution and ensuring that the sustainable development you seek for your community is achieved.”
Ehiaguina urged the Board of Trustees to remain transparent and work in the best interests of the host communities.
In his remarks, the Managing Director and Chief Executive Officer of Ingentia Energies Limited, Charles Odita, said the trust was established after extensive consultations with stakeholders and the host communities.
Odita said that, in line with the PIA, the company would provide funding for projects selected by its host communities and expressed satisfaction that the board had finally been inaugurated after delays involving various stakeholders.
“We know that with the cooperation of the three communities we are indeed here today.
“I believe that with the inauguration of this Trust there will even be a jump start to the impact of our operation on the community because, as we are all aware, under the PIA, the government in its wisdom has mandated that we set aside three per cent of our operating expenditure for the previous year to be given to the Host Community Development Trust.
“It is then the Trust that determines what happens. So with this, we believe we are going to be making our own contribution, and then the Trust, which is made up of members of the community, will indeed decide how and what they want to do.
“So this, for me, is going to be a major game changer for the accelerated development of the community,” he said.
Also speaking, the Permanent Secretary, Rivers State Ministry of Chieftaincy and Community Affairs, Patrick Ndukwe, described the inauguration as a significant milestone for the energy sector and the host communities of PML 66.
He said the event fulfilled one of the obligations of the settlor under the Petroleum Industry Act and assured that the state government would continue to provide a peaceful and conducive environment for businesses to thrive.
Ndukwe urged the trustees to select projects that align with the Rivers State Government’s development priorities.
“As you choose your projects you must ensure that they align with the Rivers State Government development plan under the visionary leadership of His Excellency Sir Siminalayi Fubara, Governor of Rivers State,” he stated.
He listed infrastructure development, sustainable urban and rural communities, road construction, transportation, quality education, healthcare and agriculture among the state’s development priorities.
Earlier, a consultant to Ingentia Energies Limited, Godwin Minimah, described the inauguration of the PML 66 Board of Trustees as a significant step towards strengthening relations between the company and its host communities.
