The Federal Government has approved 19 fund managers to manage the finances provided by oil and gas companies for their various Host Communities’ Development Trust.
HCDTs are trust funds by international and domestic oil and gas companies which are meant for the development of communities where oil and gas operations take place.
The Federal Government gave the approval for the fund managers through the Nigerian Upstream and Downstream Petroleum Regulatory Commission, adding that more companies would be approved in due course.
The Assistant Director, Host Communities Department, NUPRC, Olatokunbo Karimu, disclosed this in Abuja, on Friday, at a stakeholders’ engagement on the deployment Host Comply Technology Solution developed by the commission.
He said, “The fund managers are very important because this a long term sustainability programme for the host communities after the cessation of oil and gas operations. So we have received a total of 37 applications from the fund managers, and those fully approved to play in the arena are 19.
“They are on our website, where you (oil companies) can get the fully approved fund managers, so that you can advise your management committees or your board of trustees to select from this list. More fund managers are going to be approved.”
Karimu said chapter three of the Petroleum Industry Act 2021 was fully dedicated to host communities’ development, adding that the regulation of the NUPRC on this came out in June 2022, and was being operationalised gradually.
He said the funds for host communities’ development would come from three per cent of operational expenditures of oil companies, donations, gifts, grants, among others.
According to him, “We are looking at the situation where we can grow these donations, gifts and grants further down the line. We’ve done some unveiling of BOTs (Board of Trustees), and we’ve had the privilege of educating them on this particular section.”