Clarification on Host Community Project Funding in Akwa Ibom State

The attention of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is drawn to a recent publication regarding alleged delays in funding development projects in host communities in Akwa Ibom State. 

We wish to state that the NUPRC is fully committed to the implementation of the Host Community Development Trust in line with Chapter 3 of the Petroleum Industry Act (PIA, 2021), to ensure the objectives of fostering sustainable prosperity within the host communities as well as the provision of direct social and economic benefits from petroleum operations to host communities are well achieved. 

The Commission has been working assiduously to ensure that all host communities that fall within the ambits of the law benefit from the HCDTF and have established mechanisms to safeguard the funds while ensuring accountability and transparency in the disbursement and management. 

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It is worth mentioning that NUPRC has diligently superintended the incorporation process which has resulted in the full incorporation of one hundred and thirty-seven (137) HCDTs with over 200 billion naira disbursed.  One hundred and ninety-eight (198) developmental projects are going on across host communities, Akwa Ibom communities inclusive. Some yet-to-be-funded Trusts are undergoing due diligence and various validation processes.  

Against this backdrop, in response to the recent claims in the media, we wish to provide clarification to ensure accurate information is conveyed to the public and stakeholders. 

The Commission reaffirms the commitment and ongoing efforts of the NUPRC in collaboration with the Oil and Gas operators (Settlors) in the region and beyond. We can confirm that the Ibeno, Mbo and Esit Eket communities are well covered in the HCDTs implementation process. Relevant Settlors have established Host Community Development Trusts for these communities, ensuring that funds are released and community development plans are actively underway.

Key Achievements include:

1. The Commission has made significant strides in incorporating 137 Host Community Development Trusts across the region with over 200 billion naira disbursed to the trusts.  
2. A total of 198 projects have been initiated, focusing on various aspects of community development including education, healthcare infrastructure, and economic empowerment.

iii. Alternative Dispute Resolution centers are established in Bayelsa and Lagos at the NUPRC’s National Oil and Gas Excellence Center. ADR mechanisms include mediation and arbitration providing a structured process for resolving conflicts without resorting to litigations. The ADR also supports the amicable and efficient resolution of disputes, preserving relationships and reducing the time and cost associated with legal proceedings. To make for easy resolution of grievances for the ultimate peaceful coexistence of Settlors with the Host communities.

1. NUPRC has launched the HostComply portal, an industry data automation portal for warehousing of all HCDT implementation and operationalization processes and data for ease of access, inclusivity, fairness, accountability, transparency and compliance with regulation and the law. We encourage the public to visit www.hostcomply.nuprc.gov.ng for information on host community development.
2. The Commission initiated the Host Community Development Trusts Forum to meet with community representatives through its HCDT trustees to address broader issues and grievances ensuring continuous dialogue between host communities and the operators. This forum promotes transparency and accountability ensuring that community voices are heard at a higher level.
3. Establishment of Host Community Development Trusts: Relevant Settlors have successfully set up HCDTS for most of the host communities in Akwa Ibom state. These trusts are designed to ensure that the benefits of oil and gas operations are directly channeled to community development through the involvement of host communities in the conduct of Community Needs Assessment which metamorphose into the Community Development plan for implementation. The involvement of communities ensures that projects are relevant, sustainable, and beneficial to the community. These collaborative efforts foster a sense of ownership and promote inclusivity leading to successes recorded already with some of the HCDTs.

vii. Funding and Development Initiatives: Funds have already been released to these trusts and many have commenced community development projects aimed at improving the quality of life for community members and entrenching shared prosperity.

These achievements underscore the commitment of the Commission and Settlors to the sustainable development of host communities. We remain dedicated to fostering a mutually beneficial relationship between Settlors and their host communities and ensuring that the benefits of oil and gas operations are equitably shared.

Consequent to the achievements made, the claims in the media that no progress is being made are not only false but unfounded.

We encourage all stakeholders, including community members and operators, to maintain open lines of communication with the NUPRC. 

For concerns regarding funding or implementation of projects, we urge parties to engage with us directly for resolution rather than resorting to public statements that may misinform or escalate tensions.

SIGNED

Mrs Olaide Shonola,

Head, Public Affairs and Corporate Communication

Tuesday, October 15, 2024