NUPRC engages 31 fund managers for Host Community Trust Funds

The Nigerian Upstream Petroleum Regulatory Commission said it had profiled 31 competent fund managers to invest 20% out of the 3% annual funds accruing to Host Communities Development Trust Funds.

The Chief Executive Officer of NUPRC, Engr. Gbenga Komolafe disclosed this in his keynote address during a Town Hall meeting held at Watbridge Hotels, Uyo, Akwa Ibom State on Friday.

The meeting was organised by the Commission in conjunction with HOSTCOM Project Management and Advisory Konsult Ltd, including Host Communities Development Board of Trustees and Settlors for Akwa Ibom and Abia States 2024.

Komolafe, who was represented by the Coordinator of NUPRC in Eket, in Akwa Ibom State, Mr Etukudo Williams, said some Community Trusts have already begun the process of engaging with some of the fund managers.

He said, “To manage the funds, which is 20% of the 3% OPEX, the commission has profiled 31 competent fund managers to invest the funds for the Host Communities Development Trusts. Some of the incorporated HCDTs have already started the process of engaging some of these fund managers.”

Komolafe disclosed further that the commission had issued approval for the incorporation of 167 Host Community Development Trusts, adding that 124 have been fully incorporated with the Corporate Affairs Commission, while 70 accounts had been funded by the oil companies.

In his remarks, the national chairman of the Host Communities of Nigeria Producing Oil and Gas, High Chief Style Benjamin Tamaran-Ebi, said oil firms operating in Nigeria have commenced the annual three per cent contribution to Host Communities  Development Trusts as mandated by the Petroleum Industry Act 2021.

According to him 70, Trusts out of 167 already incorporated had been paid the sum of over N80bn, while the dollar component amounted to over $150m for the years 2021-2022.

“We have verified that 70 Trusts out of 167 incorporated have been funded with the sum of N80bn and the dollar component is more than 150m dollars.

“So, comparatively we are saying that these funds are going directly to the communities for sustainable development and with this transparency within a gap of five years, there is going to be a lot of transformation in our various communities.

“This is just for 2021–2022. The year 2023 funds are still being expected. We are here to tell the communities to work seamlessly to protect the projects so that the government can entrust more to the communities”, he said.

While expressing disappointment that most communities are yet to form their Trusts due to litigations and struggle for leadership positions, Tamaran-Ebi urged the communities to invest the money in sustainable development projects.

“This money has been given to communities, and within the next few years, Niger Delta will be brighten up. 75 per cent of the fund is for projects, 20 per cent reserve fund is for business and 5 per cent is for sitting allowance including payment of house rents and these funds will not be in the hands of the Board of Trustees.

“This is the transparency of the Nigerian Upstream Petroleum Regulatory Commission. Think of what your community should do to have sustainable development, it’s integrity test. Don’t misuse it, but use it to develop your communities, we want to encourage ourselves and that is the message.”

Speaking at the event, the Akwa Ibom State Commissioner for Environment and Mineral Resources,  Etim Uno, said that there was a need for members of the Board of Trustees, the Management Committee and the Advisory committees of the Trust to work hand in hand to ensure smooth and speedy implementation of the PIA in impacted communities in the state.

Uno who was represented by the Head of Petroleum Resources in the Ministry, Engr. Anietie Emah expressed concern that certain issues including the clamour to chair or belong to any of the communities ‘s Trust had hampered the PIA implementation process in some Akwa Ibom Oil and gas communities.

He said, “We need to understand that everybody cannot be chairman of the BOT, or Chairman of the Management committee at the same time, it is not possible. Please, members of the BOT, let the people you represent understand what is happening.”