FG Determined to Strengthen Host Community Trust Fund As Lokpobiri Engages NUPRC
In a bid to ensure the smooth implementation of the Petroleum Industry Act (PIA), the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, has reaffirmed the government’s commitment to establishing functional Host Community Trust Funds across oil-producing regions.
As part of ongoing efforts to address implementation challenges, Lokpobiri recently engaged with a delegation from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), led by the Executive Director for Host Communities (Hostcom), Mrs. Ejiro Ufondu. The discussions focused on streamlining the establishment of Trust Funds in line with the PIA’s provisions to guarantee host communities’ direct benefits from the energy sector.
The minister emphasized that since this is the first time Nigeria is implementing the PIA, periodic reviews are necessary to ensure the law’s proper execution. He noted that these evaluations will enhance transparency, encourage equitable participation, and maintain sustainable oil production in the country.
“We have adopted critical measures to ensure that every host community’s Trust Fund is set up for access by the communities,” Lokpobiri stated. “These periodic reviews serve the best interests of all stakeholders while securing a more sustainable future for our energy sector.”
The Host Community Trust Fund is a key component of the PIA, designed to facilitate community development by ensuring that oil-producing communities benefit from extractive activities in their regions. The fund is expected to improve social infrastructure, economic empowerment, and overall living conditions for host communities.
Stakeholders in the oil and gas sector have lauded the government’s proactive approach, emphasizing the need for continued engagement to maximize the potential of the Trust Fund and foster long-term stability in the Niger Delta.