The Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has commenced the execution of 536 development projects across oil-producing communities in the Niger Delta region.
The projects are being carried out simultaneously under the framework of the Host Community Development Trust (HCDT), a key component of the Petroleum Industry Act (PIA) 2021, aimed at ensuring oil-producing communities benefit directly from extractive operations in their areas.
In a statement issued on Monday, the NUPRC revealed that the initiative has already delivered several infrastructure upgrades, including a newly constructed two-storey classroom block with 18 fully furnished rooms at a school in Obagi, Rivers State.
Other completed projects included the full renovation and expansion of the Ogbogu Cottage Hospital, now equipped with a 20-bed capacity and a diagnostic centre, as well as the refurbishment of the Ogbogu Ultra-Modern Civic Centre.
Communities such as Oboburu, Amah, Erema, and Akabuka are also seeing improvements, with projects ranging from road construction and water production facilities to gas distribution units and school rehabilitation efforts.
According to the Commission, funding for these initiatives is being drawn from the growing Host Community Development Trust Fund, which reached a total of N373 billion as of October 13, 2025.
”The fund, established under Section 235 of the PIA, mandates oil and gas companies—referred to as “settlors”—to contribute 3 per cent of their previous year’s operating expenses into a trust specifically designated for community development.
The Commission also clarified that the total figure included both naira and foreign currency contributions, comprising N125 billion and $168.9 million, respectively.
These funds are managed through accounts held in financial institutions with at least a BBB credit rating, ensuring financial stability and transparency.
While the NUPRC does not directly disburse the funds, it is tasked with monitoring their utilisation through a compliance dashboard system known as HostComply.
This technology-enabled platform allows the Commission to track project execution and ensure that settlors are meeting their obligations in line with the Act.
Speaking on the recent progress, NUPRC’s Head of Media and Strategic Communications, Eniola Akinkuotu, noted that over 10 new projects were recently commissioned under the Obagi HCDT in Rivers State, operated by TotalEnergies.
She added that another 10 projects were currently under construction, signalling what the Commission described as a new era of grassroots-focused development in oil-producing areas.
“The transformation in these communities underscores the intent of the PIA: to guarantee that host communities are no longer left behind in the distribution of oil and gas wealth,” Akinkuotu said.
The Host Community Development Trust model has been hailed as a sustainable approach to addressing the historical grievances of the Niger Delta region, often plagued by underdevelopment and environmental degradation despite decades of oil exploration.
As implementation continues, the NUPRC reiterated its commitment to strict regulatory oversight, transparency, and community engagement, ensuring that host communities see tangible benefits and improved quality of life.
