19 fund managers have received approval from the federal government to oversee the money that oil and gas companies have provided for the development trusts in their various host communities.
Oil and gas companies both domestically and internationally have trust funds called HCDTs that are intended to support community development in areas where oil and gas operations are located.
The Nigerian Upstream and Downstream Petroleum Regulatory Commission was used by the Federal Government to approve the fund managers, and they were followed by the announcement that more companies would be approved soon.
This information was provided by Olatokunbo Karimu, Assistant Director of the NUPRC’s Host Communities Department, on Friday in Abuja during a stakeholder engagement regarding the deployment of the commission’s Host Comply Technology Solution.
The fund managers are crucial, he continued, as this is a long-term sustainability program for the host communities following the end of oil and gas operations. There are 19 people who have been given full approval to participate in the arena out of the 37 applications we have received from fund managers.
The fully approved fund managers are available on our website, where oil companies can access them in order to recommend them to their management committees or boards of trustees. There will be an increase in approved fund managers.
The development of host communities is fully addressed in Chapter 3 of the Petroleum Industry Act of 2021, according to Karimu, who also noted that the NUPRC’s corresponding regulation was released in June 2022 and is currently being gradually operationalized.
According to him, the money for host communities’ development would come from donations, grants, gifts, and 3% of the operational costs of oil companies, among other sources.
He said, “We are looking at the scenario where we can grow these donations, gifts, and grants down the road. We’ve had the pleasure of educating the BOTs (Board of Trustees) during some unveiling events that we’ve conducted. – #LeadStories #News
