NUPRC reaffirms sole oversight powers over host community funds  

…says registered HCDT now 172

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has insisted that monitoring and controlling the management of host community development funds remains its exclusive statutory domain, rebuffing potential jurisdictional overlaps by other federal fiscal bodies.

Oritsemeyiwa Eyesan, Commission Chief Executive (CCE) of NUPRC made the clarification during an engagement with the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja.

According to Eyesan, the NUPRC has been enforcing the provisions of the Petroleum Industry Act especially those relating to host communities and the obligations of operating companies.

Under the Petroleum Industry Act, oil and gas companies are mandated to contribute 3 percent of their Operating Expenditure (OPEX) of the preceding financial year to a Host Communities Trust Fund for the benefit of such communities.

According to her, the HCDT which had funded the construction of schools, hospitals and other infrastructure, has contributed significantly to peace and stability in hitherto volatile communities, and led to an increase in crude oil production.

“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 stated.

Despite the progress made, the regulator acknowledged that some of the HCDTs have been the subject of litigation due to disagreements, particularly regarding the composition of Boards of Trustees.

She said that to mitigate…