By Kelechi Adesina
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has intensified enforcement of the Host Community Development Trust (HCDT) framework under the Petroleum Industry Act (PIA) 2021, mandating operators and licensees to comply with the statutory three per cent annual contribution to host community funds.
To strengthen transparency and accountability, the Authority has introduced a digital portal designed to streamline registration, project tracking, compliance reporting, and real-time oversight of contributions.
The announcement was made during a Stakeholder Sensitisation Workshop in Port Harcourt, where officials outlined the operationalisation of the HCDT framework and the new portal.
Driving Sustainable Development
Speaking on behalf of the Authority Chief Executive, Mr. Rabiu Umar, the Executive Director for Health, Safety, Environment and Community, Dr. Mustapha Lamorde, explained that the portal would ensure effective monitoring of statutory contributions while guiding trustees and management committees on governance responsibilities.
“Operators must comply with the mandatory three per cent annual contribution requirement to guarantee sustainable development in host communities,” Lamorde stressed.
Legislative Backing
Chairman of the House of Representatives Committee on Host Communities, Dumnamene Dekor, commended NMDPRA’s sensitisation efforts, noting that midstream operations—including pipelines, depots, terminals, and processing facilities—are critical to Nigeria’s energy security. He emphasized that host communities must derive practical and lasting benefits from such infrastructure.
Building Trust and Collaboration
NMDPRA’s Director of Environmental Sustainability and Host Community, Mrs. Anne Omezi, highlighted that the engagement would foster transparency and collaboration.
“We are here to build bridges of understanding, foster collaboration, and establish a shared vision for community development,” she said, urging stakeholders to share ideas that deliver lasting benefits.
Community Voices
Chief Barry Mwara, representing a Rivers State host community, praised the sensitisation programme for equipping communities with valuable knowledge.
“I will go back with this information so we can strategise on how to benefit from midstream activities in our communities,” he said, urging NMDPRA to strengthen its supervisory role to ensure proper management of the fund.
Why It Matters
The Host Community Development Trust, mandated by the PIA 2021, is designed to deliver direct social, environmental, and economic benefits to petroleum-producing areas. By enforcing contributions and digitising oversight, NMDPRA aims to build stronger trust between operators and communities while advancing Nigeria’s energy sector sustainability.