The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has declared that compliance with the Host Community Development Trust (HCDT) framework under the Petroleum Industry Act (PIA) is mandatory for operators in Nigeria's petroleum sector.
Stakeholder Sensitisation Workshop
The Authority made this known on Wednesday during a Stakeholder Sensitisation Workshop on the implementation of the HCDT framework and the operationalisation of the HCDT Digital Portal held in Port Harcourt. Speaking on behalf of the Authority Chief Executive, Mr. Rabiu Umar, the Executive Director, Health, Safety, Environment and Community (HSEC), Dr. Mustapha Lamorde, said the Petroleum Industry Act 2021 fundamentally redefined the relationship between petroleum operators and host communities.
Framework Objectives
According to him, the Host Community Development Trust framework was introduced to ensure that communities directly impacted by petroleum operations become structured beneficiaries of social and economic development. Lamorde said the initiative was designed to promote peaceful coexistence, deepen inclusion, reduce conflicts and operational disruptions, and institutionalise sustainable development in oil-producing communities.
He stressed that the Midstream Petroleum Host Communities Development Trust Regulations 2024 clearly spell out the responsibilities of licensees, governance structures, management of the three percent annual contribution, community participation mechanisms, compliance obligations, and dispute resolution procedures.
"The HCDT is not merely a funding arrangement. It is a development institution designed to create measurable improvements in education, healthcare, infrastructure, economic empowerment, environmental sustainability, and social stability within host communities," he said.
Digital Portal Unveiled
The NMDPRA also unveiled a dedicated HCDT Digital Portal aimed at enhancing transparency and accountability in the administration of host community trust funds. Lamorde explained that the portal would support digital registration of trusts, submission of governance documents, monitoring of statutory contributions, compliance reporting, project tracking, and real-time regulatory oversight.
He noted that the platform forms part of the Authority's broader digital transformation agenda and would help reduce disputes arising from information gaps while strengthening confidence among communities and operators.
"Compliance with the HCDT framework is not optional. It is a statutory obligation," he warned, adding that the Authority would continue to exercise strict supervisory oversight to ensure proper implementation of the regulations.
Empowering Host Communities
In her welcome address, the Director of Environment Management and Host Community at NMDPRA, Anne Omezi, described the forum as a major step toward empowering host communities through the framework provided by the PIA. She said the gathering brought together regulators, operators, community leaders, government officials, and private sector partners to operationalise the Midstream Host Community Development Trusts in a transparent, inclusive, and sustainable manner.
"We are here to build bridges of understanding, foster collaboration, and establish a shared vision for community development," she stated.
Legislative Support
Also speaking, Chairman of the House of Representatives Committee on Host Communities, Dum Dekor, commended NMDPRA for organising the sensitisation forum. Dekor said the PIA had shifted host community development from informal corporate social responsibility initiatives to a structured legal framework backed by funding obligations, governance structures, development plans, and accountability mechanisms.
He noted that midstream operations such as pipelines, depots, terminals, processing facilities, and transportation infrastructure are critical to Nigeria's energy security, stressing that host communities must enjoy practical and lasting benefits from such operations.
"It is not enough to establish trusts on paper. The process must ensure proper identification of host communities, timely funding by settlors, credible needs assessments, inclusive development planning, and accountable management of trust funds."
Dekor urged operators to view the Trust framework not merely as a compliance requirement but as an investment in operational stability, community confidence, and long-term sustainability. He also called on host communities to embrace unity, accountability, and constructive engagement while protecting petroleum infrastructure within their areas.
The lawmaker assured stakeholders that the National Assembly would continue to provide effective oversight to ensure the objectives of the Petroleum Industry Act are not undermined by weak accountability or poor implementation.
Workshop Participants
The workshop drew participants from government institutions, traditional institutions, host communities, civil society organisations, development partners, and industry operators across the country.
