The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has launched a digital automated portal called the Industry Digital Automated Portal (IDAP) for the monitoring and reporting of the Host Community Development Trust (HCDT). The platform was developed to provide transparent administration of the host communities in accordance with the Petroleum Industry Act (PIA) of 2021.
The unveiling of the portal took place in Abuja during the NUPRC’s stakeholders’ engagement on the operationalization of the HCDT pursuant to the PIA 2021.
The Commission Chief Executive, Mr Gbenga Komolafe, who was represented by Dr Kelechi Ofoegbu, the Executive Commissioner, Economic Regulation and Strategic Planning, NUPRC, said the IDAP would fulfil obligations to host communities and promote accountability and transparency in the HCDT programme management. He disclosed that the commission had approved 75 host community development trusts, of which 41 had been fully incorporated by the Corporate Affairs Commission. Additionally, it has pre-qualified 19 fund managers and started the process of establishing a baseline of ongoing community development projects in preparation for their migration into the HCDTs.
The establishment of the HCDT will create a more equitable distribution of the industry’s benefits and reduce the social and economic disparities in the country. Mr Komolafe urged stakeholders to continue to work together to ensure the successful implementation of the PIA, collaborating in creating a sustainable and equitable oil and gas industry that would benefit Nigerians. The commission is prioritising efforts to increase oil and gas production and ensure maximum federation revenue through the optimisation of the oil and gas value chain.
Captain John Tonlagha, the Executive Commissioner, Health, Safety, Environment and Communities, NUPRC, solicited the support and collaborative contribution of all industry players toward the implementation of provisions of the law regarding host communities. Section 240 (2) of the PIA stipulates that each settlor, where applicable through the operator, shall make an annual contribution to the applicable host communities development trust fund. The amount shall be equal to three per cent of its actual annual operating expenditure of the preceding financial year in the upstream petroleum operations affecting the host communities for which the HCDT was established.