The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has expressed optimism that the release of the regulations guiding the Midstream Host Community Development Trust Fund will accelerate the development of host communities in line with the provisions of the Petroleum Industry Act (PIA) 2021.
The Fund, which was prescribed by the Petroleum Industry Act of 2021, is meant to protect communities hosting oil and gas midstream facilities such as refineries, pipelines, and gas processing facilities. The fund according to NMDPRA is set to take off through the regulations provided by NMDPRA.
Speaking at a stakeholders’ consultative forum on midstream petroleum host community development trust regulations, the Chairman, House Committee on Host Communities, Dumnamene Dekor, however, noted that the regulations should have since been put in place immediately after the PIA was signed into law.
Dekor therefore urged the NMDPRA to urgently conclude the process and make it operational, adding that the well-being of petroleum host communities is essential to Nigeria’s desire for a progressive and prosperous nation.
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“The oil and gas sector contributes over 60 percent of total government revenue, and about 90 percent of total export earnings of the country.
“This has had enormous consequences on the development of the oil and gas and overall economy of this country. Presently, the PIA 2021 creates an opportunity for host communities to be directly involved in shaping how their developmental needs are addressed, particularly, through the establishment and operationalisation of host communities’ development trust,” he added.
The Host Community Trust Regulations, among other things, provide a framework to support the development of host communities and mechanisms to resolve disputes. Its objective includes the establishment and administration of the Trust Fund for midstream petroleum host community development.
