The Human and Environmental Development Agenda (HEDA Resource Centre), a leading civil society organization focused on anti-corruption and environmental justice, has lauded the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for mobilizing nearly N300 billion for the Host Community Development Trust (HCDT), in line with the Petroleum Industry Act (PIA) 2021.

In a letter signed by its Chairman, Olanrewaju Suraju, and addressed to the Minister of State for Petroleum Resources (Gas), HEDA described the fund mobilization as a significant step toward sustainable development and social stability in oil-producing regions.

The group emphasized the importance of settlors complying fully with Section 240 of the PIA, which mandates annual contributions of 3% of actual operating expenses from the previous year.

However, HEDA warned that the success of the HCDT hinges on strict adherence to transparency, accountability, and inclusive governance, as outlined in Sections 241, 244, and 251 of the Act. The fund, it stressed, must be used exclusively for initiatives that improve infrastructure, enhance security, protect the environment, and uplift host communities.

“We strongly advise against repeating the missteps and inefficiencies that plagued interventionist agencies like the NDDC and the Presidential Amnesty Programme,” Suraju said.

He noted that the PIA provides a clear legal framework for managing the fund transparently and inclusively, adding that any deviation would undermine the Act’s intent and erode public confidence.

HEDA also called for the proper constitution of Boards of Trustees and Management Committees, as stipulated in Sections 235, 242, and 247, and urged anti-corruption bodies to provide robust oversight.

According to the organization, effective deployment of the fund could reduce reliance on expensive pipeline surveillance contracts, as empowered and invested communities are more likely to safeguard oil infrastructure and the environment.

Reaffirming its commitment to collaborate with stakeholders and enforcement agencies, HEDA stated that it remains focused on ensuring the HCDT fulfills its mandate of fostering peace, equity, and long-term development in host communities.