HEDA Commends Mobilization of N300 Billion Host Community Development Fund, Demands Transparency and Proper Utilization in Line with PIA Act

The Human and Environmental Development Agenda (HEDA Resource Centre), Nigeria’s foremost anti-corruption and environmental justice advocacy group, has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its efforts in mobilizing approximately N300 billion for the Host Community Development Trust (HCDT), as mandated under the Petroleum Industry Act (PIA) 2021.

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In a letter signed by HEDA’s Chairman, Olanrewaju Suraju, addressed to the Honourable Minister of State for Petroleum Resources (Gas), the civil society group expressed satisfaction with the milestone, describing it as a commendable move towards sustainable development and stability in Nigeria’s oil-producing communities. The organization urged full compliance from all settlors, in accordance with Section 240 of the PIA, which mandates annual contributions equivalent to 3% of actual operating expenditure from the preceding year.

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HEDA, however, cautioned that the management and disbursement of the HCDT fund must be guided by the highest standards of transparency, accountability, and community participation, as stipulated in Sections 241, 244, and 251 of the PIA. The fund, the group emphasized, must be utilized solely for community development, infrastructure, security, and environmental protection for the direct benefit of host communities.

“We strongly advise against replicating the operational failures and lack of accountability that have characterized past interventionist agencies like the NDDC and Presidential Amnesty Programme,” said Suraju.

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“The Petroleum Industry Act provides a clear framework for inclusive and accountable management of the fund. Any deviation will betray the purpose of the Act and erode public trust.”He added.

HEDA called for strict adherence to the Act’s provisions, including the establishment of a Board of Trustees and Management Committee (Sections 235, 242, and 247), and urged anti-corruption agencies to play an active oversight role to ensure the fund becomes a catalyst for lasting development.

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The organization further noted that efficient deployment of the HCDT fund would eliminate the need for costly and controversial pipeline surveillance contracts, as well-supported communities would naturally protect oil infrastructure and preserve their environment.

HEDA reaffirmed its commitment to working with stakeholders and anti-corruption agencies to ensure that the HCDT delivers on its mandate and contributes to lasting peace, equity, and prosperity in host communities.