NUPRC engages 31 fund managers for Host Community Trust Funds

• Published On: 15 June 2024 at 20:58

The Nigerian Upstream Petroleum Regulatory Commission stated it had identified 31 competent fund managers to invest 20% of the 3% yearly funds flowing to Host Communities Development Trust Funds.

Engr. Gbenga Komolafe, Chief Executive Officer of NUPRC, made the announcement in his keynote address during a Town Hall meeting held on Friday at Watbridge Hotels in Uyo, Akwa Ibom State.

The conference was organised by the Commission in collaboration with HOSTCOM Project Management and Advisory Konsult Ltd, which includes the Host Communities Development Board of Trustees and Settlors for Akwa Ibom and Abia States 2024.



Komolafe, who was represented by Mr Etukudo Williams, the Coordinator of NUPRC in Eket, Akwa Ibom State, stated that several Community Trusts have already began to engage with some of the fund managers.

He stated, "To manage the funds, which represent 20% of the 3% OPEX, the commission has identified 31 competent fund managers to invest the funds for the Host Communities Development Trusts." Some incorporated HCDTs have already begun the process of hiring some of these fund managers."

Komolafe added that the commission has approved the incorporation of 167 Host Community Development Trusts, with 124 completely incorporated with the Corporate Affairs Commission and 70 accounts sponsored by oil corporations.




In his remarks, the national chairman of the Host Communities of Nigeria Producing Oil and Gas, High Chief Style Benjamin Tamaran-Ebi, stated that oil companies operating in Nigeria have begun the annual three percent contribution to Host Communities Development Trusts mandated by the Petroleum Industry Act 2021.

According to him, 70 of the 167 already incorporated trusts had received payments totaling more than N80 billion, with a dollar component of more than $150 million for the years 2021-2022.

"We have verified that 70 trusts out of 167 incorporated have been funded with a total of N80 billion, including a USD component of more than $150 million.

"So, in comparison, we are arguing that these money are going directly to communities for sustainable development, and with this openness, there will be a lot of transformation in our various communities over the next five years.

"This is only for 2021-2022. The year 2023 funding are still expected. "We are here to tell the communities to work together to protect the projects so that the government can entrust more to them," he stated.

While expressing sadness that most communities had yet to form Trusts owing to litigation and the competition for leadership posts, Tamaran-Ebi urged them to invest the funds in long-term development projects.


"This money has been distributed to communities, and the Niger Delta will begin to look better in the coming years. The Board of Trustees will not have access to these monies. Seventy-five percent of the fund is for projects, twenty percent is for business, and five percent is for sitting allowance, including housing rent payments.

"This demonstrates the transparency of the Nigerian Upstream Petroleum Regulatory Commission. Consider what your community should do to ensure sustainable development; it is an integrity test. Don't abuse it, but rather utilise it to build your community; we want to encourage ourselves, and that is the message."

Speaking at the event, Akwa Ibom State Commissioner for Environment and Mineral Resources, Etim Uno, stated that members of the Trust's Board of Trustees, Management Committee, and Advisory Committees must collaborate to ensure the PIA's smooth and timely implementation in impacted communities across the state.



Uno, who was represented by the Ministry's Head of Petroleum Resources, Engr. Anietie Emah, expressed worry that some concerns, such as the desire to chair or be a member of any of the communities' trusts, have impeded the PIA implementation process in several Akwa Ibom oil and gas villages.

He stated, "We must recognise that no one can be chairman of both the BOT and the Management Committee at the same time. Please, members of the BOT, inform the people you represent about what is happening."