The Host Community Development Trust (HCDT) has risen to N373 billion as of October 13, 2025, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said, adding that at least 536 community projects are ongoing simultaneously.
The NUPRC said in a statement that the fund comprises N125 billion and $168.9 million.
Section 235 of the Petroleum Industry Act of 2021, mandates settlors (oil companies) to incorporate Host Community Development Trust for the benefit of host communities where they operate.
The HCDT requires oil companies to deposit 3% of their operating expenditures of the preceding financial year into a trust fund which will be housed in a bank with BBB rating.
The PIA further stipulates that the settlor shall for the purpose of setting up the trust, in consultation with the host communities, appoint a board of trustees which shall be registered by the Corporate Affairs Commission as a corporate body.
The oil company then undertakes a NEEDS assessment that will metamorphose into the community development plan for the purpose of determining the projects that will be executed.
The fund is often dedicated to community development projects spanning infrastructure, education, healthcare, and environmental protection.
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It gives communities a sense of ownership and is expected to reduce incidents of sabotage on oil facilities like pipeline vandalism, ensures the communities receive direct benefits from petroleum operations like social economic, educational development, empowerment of youth and overall reduction of restiveness in the Niger Delta region.
These trusts are overseen by a Board of Trustees and a Management Committee, ensuring community involvement in development efforts.
While the NUPRC does not have direct access to the funds, it monitors the fund through a dashboard known as Host Comply. The Commission also monitors the implementation of the fund as mandated by the extant laws.
Obagi Pilot Phase
In line with the PIA, the NUPRC last month facilitated the delivery of over 10 life-changing projects and the flag-off of more than 10 others under the Obagi Host Community Development Trust (HCDT) in Rivers State, operated by TotalEnergies.
