Mr. Gbenga Komolafe, the Chief Executive of Nigerian Upstream Petroleum Regulatory Commission (NUPRC), confirmed that the commission has reserved over N60 billion and $100 million for oil and gas host community development trust fund.
He further added that the funds were intended to add value to host communities and strengthen a conducive operating environment for industry operators, aiming to optimize the nation’s hydrocarbon resources, but there are some challenges that pose a threat within the host communities hindering the effectiveness of these funds.
The NUPRC chief explained that the commission is exploring other alternative dispute resolution centers to facilitate amicable settlement rather than going through the lengthy and complex court processes. He also pointed out that one of the issues in Nigeria upstream is the existing tension between the host communities and oil companies, and this has been constraining the nation’s ability to fully utilize its vast oil and gas reserves.
As indicated by Komolafe,“Yes, we put in place the host community regulation, and we have made efforts to implement this effectively. Of course, part of the gains is that, as we speak, we’ve attracted about N60 billion, that is the Naira part, and about $100 million, that is on the dollar side, into these host community development trust accounts. If you gross that by today’s exchange rate, you realize that that will almost be close to N200 billion altogether”.
Mr. Gbenga concluded by saying that the goal of these reserved funds is for the funds to be used to promote shared prosperity and establish a peaceful operating environment, which will enhance maximum production and boost the federation’s revenue.
