The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stepped up enforcement of the Host Community Development Trust (HCDT) framework under the Petroleum Industry Act 2021, directing operators and licensees to comply with the mandatory three percent annual contribution to host community development funds.
The agency also announced the introduction of a digital portal designed to enhance transparency, accountability, and real-time monitoring of contributions, projects, and compliance within the oil and gas sector.
This was disclosed during a stakeholder sensitisation workshop held in Port Harcourt on the implementation of the HCDT framework and the rollout of the digital platform.
The HCDT framework, established under the Petroleum Industry Act, is aimed at ensuring that petroleum-producing communities receive direct social, environmental, and economic benefits from oil and gas operations in their areas.
Speaking on behalf of the Authority Chief Executive, the Executive Director of Health, Safety, Environment and Community, Dr Mustapha Lamorde, said the new portal would streamline registration of trusts, track projects, monitor statutory payments, and improve regulatory oversight.
He explained that the workshop was organised to clarify governance structures, operator responsibilities, fund management processes, compliance obligations, and grievance resolution mechanisms under the regulation.
Lamorde also urged operators to strictly adhere to the three percent contribution requirement, stressing that it is essential for sustainable development in host communities.
The Chairman of the House Committee on Host Communities, Dumnamene Dekor, commended the initiative, noting that midstream petroleum operations play a critical role in Nigeria’s energy sector and must translate into tangible benefits for affected communities.
Also speaking, the Director of Environmental Sustainability and Host Community at NMDPRA, Mrs Anne Omezi, said the engagement would promote collaboration, transparency, and improved development outcomes for oil-producing communities.
A representative of host communities in Rivers State, Chief Barry Mwara, described the sensitisation as informative, adding that the new knowledge would help communities better engage with the system while urging stronger regulatory supervision to ensure proper use of the funds.
