The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says 172 Host Communities Development Trusts (HCDTs) have so far been incorporated by oil and gas companies (settlors).

The commission’s Chief Executive, NUPRC, Onitsemeyiwa Eyesan, made this known in a  statement by the Head, Media and Corporate Communications, NUPRC, Eniola Akinkuotu, on Sunday in Abuja.

Mrs Eyesan spoke while addressing the leadership of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja.

Under the Petroleum Industry Act (PIA), oil and gas companies are mandated to contribute three per cent of their Operating Expenditure (OPEX) of the preceding financial year to a Host Communities Trust Fund

The funds are meant to be used for the benefit of such communities.

Mrs Eyesan said NUPRC had been enforcing the provisions of the PIA, especially those relating to host communities and the obligations of operating companies.

“We have laid out procedures for doing things and we have put regulations in place to streamline the process. So far, we have registered 172 HCDTs and we have been able to manage contributions by settlors,” the NUPRC boss said.

Mrs Eyesan said the HCDT, which had funded the construction of schools, hospitals and other infrastructure, contributed significantly to peace and stability in hitherto volatile communities.

According to her, this has also led to an increase in production.

She said that some of the HCDTs had been the subject of litigation due to disagreements over the constitution of the Board of Trustees.

She said that NUPRC had been working assiduously to ensure that they run smoothly.

“The commission’s Alternative Dispute Resolution Center has also played a pivotal role in addressing some of these grievances, ” she said.

Appreciating the RMAFC for its interest on host communities, Mrs Eyesan said that oversight on how the funds are managed remains the exclusive preserve of the NUPRC.

The NUPRC boss, however, promised to investigate the lingering disagreement between Sterling Oil Exploration and Energy Production Company (SEEPCO) and its host in Anambra State.

In his remarks, the Chairman of the RMAFC, Dr Mohammed Shehu, commended NUPRC for overseeing reforms in the oil and gas sector that had contributed to the growth in production.

Mr Shehu said that the RMAFC held the upstream oil and gas sector in high regard because the sector accounted for a large volume of what goes into the Federation Account.

Mr Shehu, while thanking the leadership of the NUPRC for honouring the invitation of the RMAFC, called for a stronger collaboration between the two institutions in the interest of the country.

(NAN)