The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has expressed optimism that the regulations guiding Midstream Host Community Development Trust Fund if implemented will accelerate the development of host communities in line with the Petroleum Industry Act (PIA) 2021.
The Fund provided for by the Petroleum Industry Act, 2021, is to protect communities hosting oil and gas midstream facilities like refineries, pipelines, and gas processing activities.
Speaking at a stakeholders’ consultative forum on midstream petroleum host community development trust regulations, the Chairman, House of Representatives Committee on Host Communities, Mr. Dumnamene Dekor noted that the regulations ought to be in place immediately after the PIA was signed into law.
Dekor urged the NMDPRA to conclude the process and make it operational to protect the wellbeing of petroleum host communities essential to Nigeria’s desire for progressive and prosperous nation.
“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 Nigeria. Presently, the PIA 2021 creates an opportunity for host communities to be directly involved in shaping how their developmental needs are addressed through the establishment and operationalisation of host communities’ development trust”, he added.
The Host Community Trust Fund Regulations provide the framework to support the development of host communities and mechanisms to resolve disputes and accelerate host communities development.
