The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has introduced a digital monitoring portal to strengthen enforcement of the mandatory three percent Host Community Development Trust contribution required under the Petroleum Industry Act 2021.
The regulator said the platform is designed to improve transparency, compliance monitoring and accountability in the administration of host community funds within Nigeria’s midstream and downstream petroleum sector.
The development was announced during a stakeholder sensitisation workshop on the implementation of the Host Community Development Trust framework and the operationalisation of the HCDT Digital Portal held in Port Harcourt.
Under the Petroleum Industry Act, petroleum operators and licence holders are required to contribute three percent of their annual operating expenditure to host community development trusts aimed at supporting social, environmental and economic development in oil-producing communities.
Speaking on behalf of the Authority Chief Executive, Rabiu Umar, the Executive Director for Health, Safety, Environment and Community at NMDPRA, Mustapha Lamorde, said the digital platform would support trust registration, project tracking, compliance reporting and real-time regulatory oversight.
Lamorde said the workshop was organised to provide stakeholders with guidance on the establishment and administration of Host Community Development Trusts, governance responsibilities, reporting obligations and grievance resolution procedures provided under the regulations.
He urged operators and licence holders to comply fully with the mandatory contribution requirement, noting that effective implementation of the framework was critical to sustainable development in host communities.
Also speaking at the event, Dumnamene Dekor commended the regulator for organising the sensitisation programme.
Dekor said infrastructure linked to the midstream petroleum sector, including pipelines, depots, terminals and processing facilities, remained critical to Nigeria’s energy security, adding that host communities should benefit directly from such operations.
The Director of Environmental Sustainability and Host Community at NMDPRA, Anne Omezi, said the engagement was intended to strengthen transparency, collaboration and sustainable development within petroleum-producing communities.
She encouraged stakeholders to participate actively in the implementation process and contribute ideas capable of improving long-term development outcomes across affected communities.
A representative of one of the host communities in Rivers State, Barry Mwara, said the sensitisation programme had provided valuable insights on how communities could better position themselves to benefit from petroleum sector activities.
Mwara also called for stronger regulatory oversight to ensure that host community funds are properly managed and utilised for their intended developmental purposes.