Mkpoikana Udoma
Port Harcourt — The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has unveiled a digital portal designed to monitor the implementation of the Host Community Development Trust framework and track the management of billions of naira earmarked for oil-producing communities under the Petroleum Industry Act, PIA.
The Chief Executive of NMDPRA, Mr Rabiu Umar, disclosed this in Port Harcourt, during a Stakeholder Sensitisation Workshop on the implementation of the Host Community Development Trust framework and operationalisation of the HCDT Digital Portal.
The newly appointed NMDPRA boss described the initiative as a major step towards transparency, accountability and regulatory efficiency in the administration of host community funds within Nigeria’s petroleum sector.
“As part of our commitment to transparency, accountability and regulatory efficiency, the Authority has developed a dedicated HCDT Digital Portal,” he said.
According to him, the portal will support digital registration of trusts, submission of governance documents, monitoring of statutory contributions, compliance reporting, project tracking and real-time regulatory oversight.
“This digital platform represents a major step in the Authority’s broader digital transformation agenda,” he stated.
“It will help standardise implementation nationwide, reduce disputes arising from information gaps, improve monitoring capabilities, and strengthen confidence among communities and operators alike.”
Under the Petroleum Industry Act, oil and gas operators are required to contribute three per cent of their annual operating expenditure to host community trusts aimed at supporting development projects and reducing conflict in producing areas.
The NMDPRA helmsman further said the Host Community Development Trust framework was introduced to fundamentally redefine the relationship between petroleum companies and their host communities.
“For decades, host communities have remained central to the sustainability of Nigeria’s petroleum industry,” he said.
“The PIA therefore introduced the Host Community Development Trust framework to ensure that communities directly impacted by petroleum operations become structured beneficiaries of social and economic development.”
He said the objectives of the framework include promoting peaceful coexistence, creating shared prosperity, deepening inclusion, reducing operational disruptions and institutionalising sustainable development in host communities.
The ACE stressed that compliance with the HCDT framework by operators and licensees was mandatory.
“Compliance with the HCDT framework is not optional. It is a statutory obligation,” he warned.
“The Authority will continue to exercise its supervisory and oversight responsibilities to ensure proper implementation of the Regulations.”
He also urged host communities to embrace the framework responsibly, noting that the trusts were designed to improve livelihoods and create sustainable opportunities for future generations.
“To our host communities, I urge you to embrace this framework constructively and responsibly,” he said.
“The Trust belongs to the communities and is intended to improve livelihoods and create sustainable opportunities for future generations.”
The NMDPRA chief further emphasised that the success of the HCDT framework would depend heavily on governance integrity, transparency and accountability among trustees, management committees and community representatives.
“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 added.
He noted that stable host communities were critical to energy security, investment confidence and the long-term sustainability of Nigeria’s petroleum industry.
“The HCDT framework is therefore not only about community development; it is also about national stability, investment confidence and the long-term sustainability of Nigeria’s petroleum sector,” he said.
This article was originally posted at sweetcrudereports.com
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