PIA: 536 Projects Ongoing Across Host Communities as HCDT Fund Hits ₦373bn

By Naija Enquirer Staff

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that the Host Community Development Trust (HCDT) fund established under the Petroleum Industry Act (PIA) has grown to ₦373 billion as of October 13, 2025, with 536 projects currently ongoing across host communities nationwide.

According to a statement by the Commission’s Head of Media and Strategic Communications, Eniola Akinkuotu, the fund comprises ₦125 billion and $168.9 million contributed by oil and gas companies in compliance with Section 235 of the PIA, 2021.

PIA Ensures Sustainable Development for Host Communities

The Petroleum Industry Act mandates operators, known as settlers, to contribute 3% of their annual operating expenditure from the previous year into a trust fund dedicated to the development of oil-producing host communities. The funds, managed by BBB-rated banks, are utilized for projects identified through community-led needs assessments.

These initiatives focus on infrastructure, education, healthcare, environmental protection, and youth empowerment, aiming to reduce restiveness, prevent pipeline vandalism, and foster sustainable peace in oil-producing regions, particularly the Niger Delta.

Over 10 Projects Commissioned Under Obagi Host Community Development Trust

As part of the ongoing implementation of the PIA, the NUPRC recently facilitated the commissioning of over 10 completed projects and the flag-off of 10 new ones under the Obagi Host Community Development Trust (HCDT) operated by TotalEnergies in Rivers State.

The two-day event, held between September 24–25, 2025, at Ogbogu Community in Ogba/Egbema/Ndoni Local Government Area, marked a major milestone in host community development under the PIA.

Key Projects Commissioned Include:

• Construction of a two-storey classroom block with 18 furnished classrooms at Ogbogu.
• Remodeling of the Ogbogu Cottage Hospital and construction of a new diagnostic center.
• Revitalization of the 1,200-capacity Ogbogu Ultra-Modern Civic Centre.
• Construction of 260m asphalt pavement on Obe Road and 320m concrete pavement on SDA Road in Oboburu Community.
• Establishment of the Amah Bottled Water Factory and sachet water plant.
• Procurement of a Gas Skid Plant in Erema Community.
• Renovation and re-equipping of Akabuka South and North Primary Schools.

These projects were carefully selected based on needs identified directly by the host communities — a core principle of the PIA.

Stakeholders Commend Progress, Urge Accountability

“These projects will enhance education, healthcare, and job creation. We encourage host communities to take ownership and ensure sustainability,”
— Engr. Gbenga Komolafe, NUPRC Chief Executive (represented by Capt. John Roland Tonglagha)

Rivers State Deputy Governor, Prof. (Mrs.) Ngozi Nma Odu, applauded the transparency demonstrated by the Obagi HCDT, describing it as a model for effective community development. She contrasted it with previous systems where funds were often misused.

“The PIA framework ensures that host communities finally see real, traceable impact from oil production,”
— Prof. Ngozi Nma Odu

Chairman of the Senate Committee on Oil and Gas Host Communities, Senator Benson Agadaga, emphasized that the successful rollout of the PIA is already promoting peace in the Niger Delta and supporting Nigeria’s goal of producing over 2 million barrels per day.

“Effective implementation of the PIA is key to lasting peace and shared prosperity in the Niger Delta,”
— Senator Benson Agadaga

TotalEnergies, Community Leaders Reaffirm Commitment

TotalEnergies Nigeria Managing Director, Matthieu Bouyer, highlighted that more than 500 projects across 60 host communities have been identified under the HCDT plan, creating over 1,000 jobs and impacting over 30,000 people.

Chairman of the Obagi HCDT Board, High Chief Dike Hopeson Dike, assured stakeholders of continued collaboration, noting that within just one year, the trust had delivered 125 units of 5,000-litre solar-powered boreholes, solving over 70% of water challenges in the area.

NUPRC Reaffirms Transparency and Accountability

The NUPRC reiterated its dedication to ensuring the full and transparent implementation of the Petroleum Industry Act. Through its HostComply monitoring dashboard, the Commission continues to track compliance, assess project progress, and ensure communities receive tangible benefits.

With ₦373 billion already mobilized and hundreds of projects underway, the PIA’s host community component is shaping up to be one of the most transformative development frameworks in Nigeria’s oil and gas history.