Thirty-one capable fund managers have been identified by the Nigerian Upstream Petroleum Regulatory Commission to invest twenty percent of the three percent yearly funds that accrue to the Host Communities Development Trust Funds.
This was revealed at the town hall meeting’s keynote speech by NUPRC CEO Engr. Gbenga Komolafe, which took place on Friday at the Watbridge Hotels in Uyo, Akwa Ibom State.
The Commission, in collaboration with HOSTCOM Project Management and Advisory Konsult Ltd., settlors for the 2024 states of Akwa Ibom and Abia, as well as the Host Communities Development Board of Trustees, hosted the meeting.
Speaking on behalf of Mr. Etukudo Williams, the Coordinator of the NUPRC in Eket, Akwa Ibom State, Komolafe stated that certain Community Trusts have already started corresponding with certain fund managers.
“The commission has profiled 31 competent fund managers to invest the funds for the Host Communities Development Trusts,” he added. “The funds, which represent 20% of the 3% OPEX, need to be managed.” A few of the HCDTs that have been incorporated have already begun the process of working with some of these fund managers.
Further information was provided by Komolafe, who revealed that the commission had approved the incorporation of 167 host community development trusts, of which 124 have been fully formed with the Corporate Affairs Commission and 70 have received funding from oil firms.
High Chief Style Benjamin Tamaran-Ebi, the national chairman of the Host Communities of Nigeria Producing Oil and Gas, stated in his remarks that oil companies operating in Nigeria have started to contribute the three percent annually required by the Petroleum Industry Act 2021 to Host Communities Development Trusts.
He said that of the 167 trusts that had previously been created, 70 had received payments totaling more than N80 billion, with the USD component amounting to more than $150 million for the years 2021–2022.
“We have confirmed that 70 Trusts out of the 167 that were incorporated have received funding totaling N80 billion, with over 150 million dollars coming from the dollar component.In light of this, we are claiming that the monies are flowing straight to the communities for sustainable development.
In light of this, we are claiming that the monies are flowing straight to the communities for sustainable development. With this transparency, our diverse communities will undergo significant change in the next five years.
This only applies to 2021–2022. Funds for 2023 are still anticipated. In order for the government to give the communities more authority, we are here to advise them to collaborate effectively to safeguard the projects,” he stated.
Tamaran-Ebi encouraged the communities to use the funds for sustainable development initiatives, while lamenting the fact that most communities had not yet established their Trusts as a result of legal disputes and competition for leadership roles.
“Communities have received this funding, and the Niger Delta will improve over the next five years. Twenty percent of the reserve fund is for business, seventy-five percent is for projects, and five percent is for sitting allowance, which includes paying the rent on a dwelling. The Board of Trustees will not have access to these monies.
The Nigerian Upstream Petroleum Regulatory Commission is transparent in this way. Consider the integrity test that your community should undergo in order to achieve sustainable development. The message is, “Don’t misuse it; instead, use it to develop your communities. We want to encourage ourselves.”
Speaking at the event, Etim Uno, the Akwa Ibom State Commissioner for Environment and Mineral Resources, stated that in order to ensure the PIA is implemented in the affected communities of the state in a timely and efficient manner, members of the Trust’s Board of Trustees, Management Committee, and Advisory committees must collaborate with one another.
Uno expressed worry that some concerns, such as the desire to chair or be a member of any community’s trust, have impeded the PIA implementation process in several Akwa Ibom oil and gas areas. Uno was represented by the Ministry’s Head of Petroleum Resources, Engr. Anietie Emah.
“We need to realise that it is not possible for everyone to be the chairman of the Management Committee and the Chairman of the Board of Trade at the same time,” he stated. Members of the BOT, kindly explain the situation to the people you represent.
