The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has launched a digital portal to oversee Host Community Development Trusts (HCDTs), stressing that compliance with the framework under the Petroleum Industry Act (PIA) is mandatory for all petroleum operators.
The announcement was made at a Stakeholder Sensitisation Workshop on the implementation of the HCDT framework and the operationalisation of the digital portal held in Port Harcourt on Wednesday.
The Authority Chief Executive of Nigerian Midstream and Downstream Petroleum Regulatory Authority, Rabiu Umar, said the Petroleum Industry Act 2021 had fundamentally redefined the relationship between oil operators and their host communities.
Umar, who was represented by the Executive Director for Health, Safety, Environment and Community, Mustapha Lamorde, explained that the Host Community Development Trust framework was designed to ensure communities affected by petroleum operations become structured beneficiaries of social and economic development.
He said the initiative aims to promote peaceful coexistence, deepen inclusion, reduce conflicts and operational disruptions, and institutionalise sustainable development in oil-producing areas.
According to him, the Midstream Petroleum Host Communities Development Trust Regulations 2024 outline clear responsibilities for licensees, including governance structures, management of the mandatory 3% 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,” Lamorde said.
He further disclosed that the newly introduced HCDT Digital Portal will handle digital registration of trusts, submission of governance documents, monitoring of statutory contributions, compliance reporting, project tracking and real-time regulatory oversight.
The platform, he added, forms part of the Authority’s broader digital transformation agenda and is expected to reduce disputes caused by information gaps while strengthening trust between communities and operators.
“Compliance with the HCDT framework is not optional. It is a statutory obligation,” he warned, adding that the regulator will maintain strict oversight to ensure full implementation of the regulations.
Director of Environment Management and Host Community at NMDPRA, Anne Omezi, said the workshop represents a key step toward empowering host communities under the PIA.
She noted that the forum brought together regulators, operators, community leaders, government officials and private sector stakeholders to operationalise midstream HCDTs in a transparent and inclusive manner.
Chairman of the House of Representatives Committee on Host Communities, Dumnamene Dekor, commended NMDPRA for the initiative, describing the PIA as a shift from informal corporate social responsibility to a structured legal framework with funding obligations and accountability mechanisms.
He stressed that midstream infrastructure such as pipelines, depots, terminals and processing facilities remain critical to Nigeria’s energy security, adding that host communities must begin to see tangible benefits.
Dekor called for proper identification of host communities, timely funding by operators, credible needs assessments, inclusive development planning and transparent management of trust funds.
He urged operators to view the framework as an investment in operational stability and long-term sustainability, while encouraging communities to embrace unity, accountability and constructive engagement to protect petroleum infrastructure.
Dekor also assured that the National Assembly would continue its oversight role to prevent weak accountability and poor implementation from undermining the objectives of the Petroleum Industry Act.
The workshop was attended by participants from government institutions, traditional institutions, host communities, civil society organisations, development partners and industry operators across the country.
