The Nigerian Upstream Petroleum Regulatory Commission has reaffirmed that it has the statutory responsibility to oversee and regulate funds set aside for host communities in Nigeria’s oil-producing areas.
The Commission Chief Executive, Oritsemeyiwa Eyesan, made the position known during an engagement with the Revenue Mobilisation Allocation and Fiscal Commission in Abuja.
Eyesan said the NUPRC’s authority is rooted in the Petroleum Industry Act, which sets out the obligations of oil and gas companies to communities where they operate.
Under the Act, petroleum operators are required to contribute three per cent of their operating expenditure from the previous financial year to Host Community Development Trusts. The funds are intended to support development projects and improve conditions in host communities.
The NUPRC boss disclosed that the commission has so far registered 172 Host Community Development Trusts and established mechanisms for managing and monitoring contributions made by oil and gas companies.
According to her, the scheme has supported the development of schools, healthcare facilities and other infrastructure in host communities.
She added that the investments have also helped promote peace and stability in communities that had previously experienced conflicts, while contributing to improved crude oil production.
However, Eyesan acknowledged that some of the trusts have faced legal disputes, particularly disagreements over the composition of their Boards of Trustees.
To address such challenges, she said the NUPRC is using its Alternative Dispute Resolution Centre to resolve conflicts and ensure the trusts operate effectively.
The commission also said it would immediately investigate the unresolved dispute between Sterling Oil Exploration and Energy Production Company and its host community in Anambra State.
RMAFC Chairman, Mohammed Shehu, commended the NUPRC for its work in the upstream oil and gas sector, noting the importance of the industry to government revenue and the Federation Account.
