Akwa Ibom HCDTs Advised to Diversify Funding Beyond Oil Company Support

• Experts advise Akwa Ibom's Host Community Development Trusts to diversify funding beyond statutory oil company funding.
• Policy Alert and BudgIT Foundation recommend strengthening governance, accountability, and project delivery within HCDTs.
• Diversification is seen as crucial for the long-term sustainability of development projects in Akwa Ibom.
• Strengthening governance and accountability can enhance the credibility and attractiveness of HCDTs to potential partners.

The experts' advice is centered around strengthening governance, accountability, and project delivery within the HCDTs. By doing so, they believe these entities can become more attractive to potential grantors and strategic partners.

Akwa Ibom's Host Community Development Trusts (HCDTs) have been advised by experts to explore alternative funding sources. Policy Alert and BudgIT Foundation, two organizations focused on governance and accountability, issued a joint call for HCDTs to diversify their revenue streams beyond statutory oil company funding. This recommendation comes as the state's economy continues to rely heavily on oil revenues, which are subject to fluctuations in global market prices.

The experts' advice is centered around strengthening governance, accountability, and project delivery within the HCDTs. By doing so, they believe these entities can become more attractive to potential grantors and strategic partners. This shift towards diversification is seen as crucial for the long-term sustainability of development projects in Akwa Ibom.

The Petroleum Industry Act (PIA) 2021, which established HCDTs in various oil-producing states, including Akwa Ibom, provides a framework for these entities to manage revenue from oil companies. However, the Act's focus on statutory funding has led to concerns about the sustainability of these trusts. The reliance on oil revenues makes them vulnerable to market volatility and reduces their ability to secure alternative funding sources. In contrast, strengthening governance, accountability, and project delivery can enhance the credibility and attractiveness of HCDTs to potential partners.

The advice from Policy Alert and BudgIT Foundation highlights the need for Akwa Ibom's HCDTs to adapt to changing circumstances. By diversifying their funding sources, these trusts can reduce their dependence on oil revenues and become more resilient in the face of economic uncertainty. This shift is also expected to improve project delivery and governance within the trusts, ultimately benefiting the communities they serve. As the state continues to develop its economy, it is essential for HCDTs to explore alternative funding options and enhance their capacity to attract grants and strategic partnerships.

Lawyers advising Akwa Ibom's Host Community Development Trusts should consider strengthening governance, accountability, and project delivery to attract grants and strategic partnerships.

Source: Original reporting via Premium Times Nigeria