The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the regulatory authority for the upstream oil sector, has announced that the Host Community Development Trust Fund has reached a total of N373 billion as of October 13, 2025.
Currently, the Commission is supervising 536 ongoing community development initiatives financed through this Trust across Nigeria’s oil-producing areas.
The NUPRC disclosed that the N373 billion fund consists of N125 billion in local currency and $168.9 million contributed in foreign currencies by oil and gas companies, referred to as settlors.
Mandated by Section 235 of the Petroleum Industry Act (PIA) 2021, the Host Community Development Trust (HCDT) requires oil operators in host communities to allocate three percent of their previous year’s annual operating expenses into these dedicated trust funds.
These funds are strictly designated for projects that meet the socio-economic needs of host communities, focusing on sectors such as infrastructure, education, healthcare, environmental conservation, and youth empowerment.
Under the PIA, oil companies must collaborate with host communities to form Boards of Trustees responsible for managing these funds.
These Boards are legally registered with the Corporate Affairs Commission and are tasked with executing projects prioritized through detailed community needs assessments.
Although the NUPRC does not have direct control over the funds, it ensures proper fund allocation and project execution through a digital monitoring system called HostComply, promoting transparency and regulatory compliance.
In a recent demonstration of its facilitative role, the NUPRC supervised the completion of over 10 impactful projects and launched an additional 10 initiatives under the Obagi Host Community Development Trust in Rivers State, managed by TotalEnergies.
The handover ceremony took place over two days, from September 24 to 25, 2025, in the Ogbogu Community within the Ogba Egbema Ndoni Local Government Area.
Among the completed projects in Obagi are the demolition and rebuilding of two-storey classroom blocks featuring 18 classrooms that meet UBEC standards, renovation of the 20-bed Ogbogu Cottage Hospital including a new diagnostic center, and enhancement of the Ogbogu Ultra Modern Civic Centre with a seating capacity of 1,200. Infrastructure upgrades also include the paving of roads measuring 260 meters and 320 meters in separate communities, establishment of an Amah Bottling Water Factory with significant production capacity, installation of a Gas Skid Plant, and refurbishment of local primary schools with modern furniture and facilities.
At the event, NUPRC’s CEO, Engr. Gbenga Komolafe, highlighted that these developments will significantly improve education, healthcare, and job creation in the host communities.
Represented by Executive Commissioner Capt. John Roland Tonglagha, Komolafe urged host communities to embrace these assets and work closely with upstream operators to further develop the oil sector and boost national economic growth. He also commended President Bola Tinubu’s proactive policies that have enhanced investment opportunities in the upstream petroleum industry.
Rivers State Deputy Governor, Professor Ngozi Nma Odu, expressed satisfaction with the prompt delivery and effective use of the funds, contrasting it with previous administrations where such resources were often underutilized. Senator Benson Agadaga, Chairman of the Senate Committee on Oil and Gas Host Communities, praised the PIA’s role in reducing unrest in host communities, emphasizing that peace in the Niger Delta is essential for Nigeria to achieve its crude oil production goal of over two million barrels per day.
Matthieu Bouyer, Managing Director of TotalEnergies Upstream Companies Nigeria, noted that TotalEnergies was among the first international oil firms to fully comply with the HCDT requirements, creating over 1,000 jobs and positively impacting more than 30,000 individuals across over 60 communities through the Obagi HCDT.
He described the program as a benchmark for sustainable community development aligned with regulatory standards.
High Chief Dike Hopeson Dike, Chairman of the Obagi HCDT Board of Trustees, reassured stakeholders of ongoing community collaboration and highlighted significant progress in addressing local water issues, with over 125 solar-powered boreholes installed within the past year.
The consistent expansion of the Host Community Development Trust Fund and the successful delivery of numerous projects underscore the NUPRC’s vital role in ensuring that Nigeria’s oil wealth translates into meaningful development and stability for host communities.
