With over 536 projects in progress and billions flowing into community-led development, NUPRC’s Host Community Development Trust initiative is quietly rewriting the story of oil-producing communities in Nigeria
By Silverline Ifeanyi Onyeabor
For decades, the Niger Delta has been defined by two contrasting realities: immense oil wealth and persistent underdevelopment. But three years after the enactment of the Petroleum Industry Act (PIA) 2021, a new chapter is unfolding, one that places host communities at the heart of Nigeria’s energy prosperity.
At the centre of this transformation stands the Host Community Development Trust (HCDT), a bold new funding model managed under the oversight of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
As of October 13, 2025, the fund has grown to a staggering N373 billion, comprising N125 billion and $168.9 million, and is currently driving 536 community projects across oil-producing regions.
It is not just a number on paper. It represents new schools, hospitals, boreholes, skill centres, and roads, tangible proof that the PIA’s community-focused reforms are beginning to yield dividends.
Turning Law into Livelihood
The PIA’s Section 235 mandates oil and gas operators, known as settlers, to create and fund Host Community Development Trusts for the benefit of their host areas.
Each company contributes 3% of its annual operating expenditure from the preceding financial year into the fund. This money is housed in a bank with at least a BBB credit rating, ensuring transparency and safety.
The process is detailed and deliberate:
• Companies, in consultation with host communities, appoint a Board of Trustees registered with the Corporate Affairs Commission (CAC).
• They conduct a needs assessment, which evolves into a Community Development Plan (CDP).
• Projects are then selected and implemented based on community priorities, from education to infrastructure and healthcare.
The philosophy behind it is simple: give communities a sense of ownership and partnership in oil operations, reduce sabotage, and drive sustainable development.
“The Host Community Trust is not just about money. It’s about creating a pathway for communities to prosper alongside the oil industry.”
— Engr. Gbenga Komolafe, Commission Chief Executive, NUPRC.
NUPRC’s Oversight: Accountability Through Technology
While the NUPRC does not manage the funds directly, it plays a crucial supervisory role. The Commission tracks every fund movement and project implementation through a digital platform known as HostComply, which serves as a transparent dashboard for compliance monitoring.
This data-driven approach ensures that oil companies adhere to the law, and host communities receive what is rightfully theirs.
Through this system, NUPRC can monitor progress, flag non-compliance, and guarantee that the intent of the PIA, equitable community development, is fully realised.
Obagi: The Pilot That Became a Model
The most striking evidence of this new approach can be found in Rivers State, where the Obagi Host Community Development Trust, operated by TotalEnergies, has become a beacon of success.
In September 2025, NUPRC facilitated the commissioning of over 10 completed projects and the flag-off of another 10 new ones under the Obagi HCDT in Ogba Egbema Ndoni Local Government Area.
Over two days, September 24–25, 2025, the communities of Ogbogu, Oboburu, Amah, Erema, and Akabuka witnessed an unprecedented transformation: new schools, rehabilitated hospitals, roads, and small industries coming alive.
Among the projects commissioned were:
• A two-storey classroom block with 18 fully furnished UBEC-standard classrooms at Ogbogu.
• A 20-bed remodelled Cottage Hospital and a new diagnostic centre.
• A revitalised 1,200-capacity Civic Centre for community functions.
• 260-metre and 320-metre road pavements in Oboburu.
• An Amah Bottling Water Factory with a 1,500 bottles-per-hour production line.
• A Gas Skid Plant in Erema Community.
• Renovated Akabuka North and South Primary Schools, equipped with modern desks and facilities.
These projects, designed from the ground up through community input, are reshaping life in the region.
A Commission with a Human Face
At the commissioning ceremony, Engr. Gbenga Komolafe, represented by Capt. John Roland Tonglagha, Executive Commissioner for Health, Safety, Environment, and Community, highlighted that the projects were tailored to address fundamental human needs: education, healthcare, and job creation.
He urged communities to take ownership of these facilities and to see themselves as partners in national prosperity rather than passive recipients of corporate charity.
“These projects are not handouts; they are your inheritance. Protect them, use them, and let them become the foundation of a better future for your children.”
— Capt. John Roland Tonglagha, NUPRC.
Komolafe also extended gratitude to President Bola Ahmed Tinubu, whose energy sector reforms and pro-investment stance, he noted, have helped stabilise Nigeria’s upstream environment and attract renewed corporate commitment.
Voices of Partnership and Progress
The Governor of Rivers State, represented by the Deputy Governor, Professor Ngozi Nma Odu, commended the NUPRC and TotalEnergies for the transparent and impactful execution of the Obagi HCDT projects.
“In the past, funds were sent to communities without clear accountability. What we are witnessing now is structure, delivery, and visible impact.”
— Professor Ngozi Nma Odu, Deputy Governor, Rivers State.
Her remarks underscored a larger shift, from opaque community funding schemes to a results-driven model backed by law and public oversight.
Senate Endorsement: The Peace Dividend of the PIA
Speaking at the event, Senator Benson Agadaga, Chairman of the Senate Committee on Oil and Gas Host Communities, observed that the PIA’s implementation is already paying off in reduced hostilities across the Niger Delta.
He pointed out that communities now have a legal stake in oil operations, which is helping stabilise production and reduce vandalism, a breakthrough in a region once synonymous with unrest.
“The little peace we are seeing today in the Niger Delta is because of the PIA. The host communities are no longer as hostile as before.”
— Senator Benson Agadaga, Chairman, Senate Committee on Host Communities.
According to him, peace in oil-producing regions is vital to achieving Nigeria’s production target of over two million barrels per day, a goal that the NUPRC and its partners are now within reach of attaining.
TotalEnergies Leads the Way
For TotalEnergies, the Obagi Trust represents more than corporate responsibility; it is a demonstration of what sustainable partnership can achieve.
The company’s Managing Director, Matthieu Bouyer, expressed pride in being among the first to deliver on the PIA’s Host Community Fund mandate.
“We are one of the first, if not the first, International Oil Companies to create and fund the Trust two years ago. Within the community development plan, there are more than 500 identified projects touching more than 60 communities.”
— Matthieu Bouyer, MD, TotalEnergies Upstream Nigeria.
Bouyer described the Obagi HCDT as a “shining example” of how trust and policy can work hand-in-hand to deliver real change.
He added that the initiative has created over 1,000 jobs and directly impacted more than 30,000 people, from teachers to engineers, artisans, and small business owners.
Community Voices: From Dependence to Ownership
The Chairman of the Obagi HCDT Board of Trustees, High Chief Dike Hopeson Dike, captured the mood of the communities. His message was one of gratitude, empowerment, and renewed responsibility.
“In less than one year, we have given our people over 125 units of 5,000-litre solar boreholes, and as of today, we have solved over 70% of our water problem.”
— High Chief Dike Hopeson Dike, Chairman, Obagi HCDT BoT.
He assured the NUPRC and TotalEnergies of the communities’ continued cooperation and reaffirmed that the projects would lift many residents “from poverty to prosperity.”
The Broader Picture: 536 Projects, One Vision
Across Nigeria’s oil-producing states, the story is repeating itself. The N373 billion Host Community Fund is driving 536 ongoing projects, ranging from school construction to hospital upgrades, micro-industrial enterprises, roads, and clean water systems.
These projects are not only improving the quality of life but also reducing pipeline vandalism, lowering community unrest, and enhancing production stability, outcomes that directly benefit both operators and the government.
For the NUPRC, it is the fulfilment of one of the PIA’s most ambitious goals: to ensure that the wealth of the land translates into the welfare of its people.
A New Era of Energy Justice
The ripple effects of this new structure are becoming visible. Communities once alienated from the oil economy now have statutory participation in it. The trust model has given them representation, resources, and responsibility, ensuring that they are stakeholders in Nigeria’s energy future.
This approach also aligns with global standards of Environmental, Social, and Governance (ESG) performance; an area increasingly important to investors and international partners.
By embedding community welfare into the fabric of upstream operations, Nigeria is gradually rewriting the global narrative about oil extraction in developing economies.
From Tension to Transformation
It is easy to overlook what a change this represents. A decade ago, the Niger Delta was a symbol of broken promises; a landscape dotted with abandoned pipelines and angry youths. Today, it is becoming a laboratory of reform, where accountability meets empowerment.
The PIA, through the HCDT mechanism, has introduced a governance framework that is inclusive, transparent, and enforceable, one that offers a sustainable pathway for peace and prosperity.
Looking Ahead: Sustaining the Momentum
As the NUPRC continues to monitor compliance and expand the reach of the Host Community Fund, several priorities emerge:
- Strengthening governance structures for each HCDT to ensure efficiency and prevent mismanagement.
- Expanding capacity-building for community representatives to manage development funds responsibly.
- Encouraging operators to replicate the Obagi success model across all oil-producing areas.
- Enhancing digital transparency tools like HostComply to ensure public accountability.
These steps will ensure that the N373 billion already mobilised, and the billions more to come, translate into lasting, measurable impact for Nigeria’s host communities.
The NUPRC’s stewardship of the Host Community Fund represents a quiet but profound transformation in Nigeria’s oil and gas governance. It demonstrates that when policy, accountability, and partnership intersect, even the most contentious regions can become engines of growth.
With 536 projects underway and more in the pipeline, the N373 billion Host Community Fund is not just changing infrastructure, it is changing mindsets.
It is turning conflict into cooperation, dependency into development, and oil wealth into shared prosperity.
“The Host Community Trust is the bridge between the oil under our feet and the hope in our communities.”
— Engr. Gbenga Komolafe, CCE, NUPRC.
