NUPRC PIND Foundation HCDT Reforms: Drive PIA Implementation

• A recent summit convened by the PIND Foundation and Ford Foundation called for sustained efforts to strengthen host-community governance and improve Petroleum Industry Act (PIA) implementation.
• The PIND Bridges Project has supported Host Community Development Trusts (HCDTs) in operationalization, planning, and governance through capacity building and multi-stakeholder platforms.
• PIND's Programs Director emphasized that the project's success relies on HCDTs translating gains into stronger institutions, better community participation, and more accountable development.
• The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) highlighted that evidence from the project can enhance HCDT performance and compliance, stressing the need for transparent and accountable trusts.
• HCDT representatives confirmed the project provided practical tools for improved governance, community involvement, and tracking development investments, with a focus on maintaining these systems.

Effective PIA community development sustainability is contingent upon HCDTs operating with utmost transparency and accountability.

The PIND Foundation recently convened a significant summit in Port Harcourt, Rivers State, bringing together key stakeholders to discuss the future of Host Community Development Trusts (HCDTs) in Nigeria. The event, titled “From Evidence to Sustainability: Consolidating HCDT Gains and Advancing Effective PIA Implementation,” was organized in collaboration with the Ford Foundation. Participants included representatives from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), various oil and gas companies acting as settlors, HCDTs themselves, and civil society organizations.

A central outcome of the gathering was a unified call for sustained efforts to enhance governance within host communities and to improve the overall implementation of the Petroleum Industry Act (PIA). Rather than merely concluding the PIND Bridges Project, the summit focused on evaluating progress, identifying lessons learned, and strategizing how to maintain successful practices beyond the project's initial lifecycle. Discussions were informed by comprehensive evidence, including outcome harvesting, an HCDT Impact Evidence Report, and various case studies.

The PIND Foundation's Bridges Project has been instrumental in supporting the operationalization of HCDTs, fostering participatory planning, and improving governance structures. Through initiatives like awareness-raising campaigns, capacity-strengthening programs, and the establishment of Multi-Stakeholder Platforms, the project has significantly enhanced collaboration among communities, regulators, settlors, and civil society organizations. This comprehensive approach has aimed to build robust frameworks for Nigeria oil host communities governance.

Dr. Effiong Essien, Programs Director at PIND, underscored that the ultimate success of these initiatives hinges on the enduring nature of the gains achieved. He emphasized that advancements made by HCDTs must translate into more resilient institutions, greater community involvement in decision-making, and more transparent development outcomes. Achieving this long-term sustainability, according to Essien, necessitates that all stakeholders actively embrace the tools, relationships, and practices developed through the project, committing the necessary resources and leadership to ensure their continued effectiveness.

Echoing this sentiment, Smart Okpara, Chairman of the Emohua HCDT in Rivers State and National Chairman of the Host Communities Development Trust (HCDT) Forum, highlighted the tangible benefits his Trust experienced. He noted that the Bridges Project significantly boosted their capacity for strategic planning, effective stakeholder engagement, and accountability. Okpara affirmed that the project provided practical instruments for improving governance, integrating communities into decision-making processes, and meticulously tracking the impact of development investments. He stressed that the ongoing responsibility now rests with HCDTs to diligently utilize these established systems and ensure the sustained progress beyond the project's conclusion.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), a key regulatory body, also contributed to the summit's discussions, sharing insights and priorities for strengthening the Petroleum Industry Act implementation. Kingsley Ehiaguina, Assistant Director, Host Communities Development and Administration at NUPRC, representing the Commission, articulated the regulatory implications of the evidence presented. He indicated that the data and insights generated by the Bridges Project are valuable resources that can inform efforts to enhance HCDT performance and compliance.

Ehiaguina further stated that effective PIA community development sustainability is contingent upon HCDTs operating with utmost transparency and accountability. This regulatory stance underscores a growing expectation for HCDTs to not only manage funds but also to demonstrate clear governance, engage communities meaningfully, and report on their impact with integrity. The call for sustained NUPRC PIND Foundation HCDT reforms signals a concerted effort to ensure that the provisions of the Petroleum Industry Act genuinely benefit host communities through well-managed and accountable trusts.

Lawyers advising oil and gas companies (settlors) or HCDTs should note the NUPRC's emphasis on improved HCDT performance and compliance, indicating a need for greater scrutiny on governance, transparency, and effective community engagement under the PIA. Compliance officers must ensure their organizations' HCDTs align with these evolving regulatory expectations and best practices to mitigate risks and ensure sustainable community relations.

Source: Original reporting via PIND Foundation statement