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Itode Akari
PORT HARCOURT – The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reiterated that compliance with the Host Community Development Trust (HCDT) framework, as stipulated in the Petroleum Industry Act (PIA), is compulsory for all operators in Nigeria’s petroleum sector.
The Authority made this known on Wednesday at a Stakeholder Sensitisation Workshop on the implementation of the HCDT framework and the rollout of the HCDT Digital Portal in Port Harcourt.
Speaking on behalf of NMDPRA’s Chief Executive, Mr. Rabiu Umar, the Executive Director of Health, Safety, Environment and Community (HSEC), Dr. Mustapha Lamorde, said the Petroleum Industry Act 2021 established a new framework guiding engagement between petroleum operators and host communities.
He explained that the Host Community Development Trust framework was established to ensure that communities impacted by petroleum activities become structured beneficiaries of social and economic development.
Lamorde further stated that the initiative seeks to foster peaceful coexistence, encourage greater inclusion, minimise conflicts and operational disruptions, and drive sustainable development across oil-producing communities.
He added that the Midstream Petroleum Host Communities Development Trust Regulations 2024 clearly outline the responsibilities of licensees, governance and management structures, administration of the three percent annual contribution, community participation processes, compliance requirements, and dispute resolution mechanisms.
“The HCDT is not merely a funding arrangement. It is a development institution designed to create measurable improvements in education, healthcare, infrastructure, economic empowerment, environmental sustainability, and social stability within host communities,” he said.
The NMDPRA also introduced a dedicated HCDT Digital Portal designed to improve transparency and accountability in the management of host community trust funds.
Lamorde said the portal would enable the digital registration of trusts, submission of governance documents, monitoring of statutory contributions, compliance reporting, project tracking, and real-time regulatory oversight.
He added that the platform is part of the Authority’s wider digital transformation agenda and is expected to minimise disputes caused by information gaps while enhancing trust between host communities and petroleum operators.
Lamorde stated, “Compliance with the HCDT framework is not optional. It is a statutory obligation,” he warned, adding that the Authority would continue to exercise strict supervisory oversight to ensure proper implementation of the regulations.
In her welcome address, the Director of Environment Management and Host Community at the NMDPRA, Anne Omezi, described the forum as a significant milestone in strengthening host community empowerment under the Petroleum Industry Act (PIA) framework.
She noted that the event convened regulators, operators, community leaders, government officials, and private sector stakeholders to advance the operationalisation of the Midstream Host Community Development Trusts in a transparent, inclusive, and sustainable way.
“We are here to build bridges of understanding, foster collaboration, and establish a shared vision for community development,” she stated.
Also speaking, Chairman, House of Representatives Committee on Host Communities, Dum Dekor, commended the NMDPRA for convening the sensitisation forum.
Dekor noted that the Petroleum Industry Act (PIA) has redefined host community development, moving it from informal corporate social responsibility initiatives to a legally backed structure supported by funding requirements, governance systems, development plans, and accountability frameworks.
He further observed that midstream operations—such as pipelines, depots, terminals, processing facilities, and transport infrastructure—are central to Nigeria’s energy security, adding that host communities must derive tangible and sustainable benefits from such activities.
“It is not enough to establish trusts on paper. The process must ensure proper identification of host communities, timely funding by settlors, credible needs assessments, inclusive development planning, and accountable management of trust funds.”
Dekor also urged operators to view the Trust framework not merely as a compliance requirement but as an investment in operational stability, community confidence, and long-term sustainability.
He also called on host communities to embrace unity, accountability, and constructive engagement while protecting petroleum infrastructure within their areas.
The lawmaker assured stakeholders that the National Assembly would continue to provide effective oversight to ensure the objectives of the Petroleum Industry Act are not undermined by weak accountability or poor implementation.
The workshop drew participants from government institutions, traditional institutions, host communities, civil society organisations, development partners, and industry operators across the country.
