Oil and gas companies operating in Nigeria contributed over N57 billion to Host Community Development Trusts (HCDTs) in 2024, according to new data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The funds, which represent 3% of the companies’ actual operating expenses from the previous year, were paid in line with the provisions of the Petroleum Industry Act.

The recent remittance brings the total amount contributed to host communities since the implementation of the Act to N65.15 billion, including N8.45 billion disbursed in 2023.

According to the commission, 207 applications were received for the establishment of Host Community Development Trusts. Of these, 154 were approved, and 136 were officially registered with the Corporate Affairs Commission.

On project oversight, the report revealed that 32 fund managers have been appointed to handle disbursements, with 187 projects currently underway across various communities.

Efforts are also ongoing to roll out a digital monitoring platform named HostComply, which will help track fund usage, compliance, and resolve disputes. However, the NUPRC noted that several key features of the portal—such as conflict resolution tools and environmental performance tracking—are still in development.

Challenges that slowed progress in 2024 included legal petitions and disputes that affected the formation of governance structures for the Trusts. The delayed launch of the HostComply platform also limited effective monitoring.

The Host Community Development Trust was introduced under the 2021 Petroleum Industry Act as a means to ensure that communities impacted by oil operations benefit directly from development funds, with the goal of fostering peace and sustainable growth.

In a related update, the commission reported that 361 contracts and procurement processes were completed in 2024. Of the 170 projects executed, one was terminated, while 190 others are still ongoing.