Oil and gas companies operating in Nigeria remitted a total of ₦57.07 billion to Host Community Development Trusts (HCDTs) in 2024, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The remittances were made in compliance with the Petroleum Industry Act (PIA), which mandates that three per cent of actual annual expenditure be allocated to host communities.
The figure, disclosed in a report obtained by The PUNCH on Monday, brings the cumulative contributions to HCDTs to ₦65.15 billion, combining the 2024 figure with the ₦8.45 billion remitted in 2023.
According to NUPRC, 207 applications were received for the establishment of HCDTs, out of which 154 were approved, and 136 Trusts successfully registered with the Corporate Affairs Commission (CAC).
In terms of project oversight, the report revealed that 32 fund managers were approved to supervise disbursements. As of the time of reporting, 187 community development projects were ongoing across the various Trusts nationwide.
The implementation of the HCDT framework is seen as a critical mechanism for ensuring direct community benefits from petroleum operations, reducing conflict, and promoting sustainable development in oil-producing regions.
