The Nigerian Upstream and Downstream Petroleum Regulatory Commission (NUPRC) has given its approval to 19 fund managers who will oversee the management of finances allocated by oil and gas companies for the development of Host Communities’ Development Trust. This announcement was made by Olatokunbo Karimu, the Assistant Director of the Host Communities Department at NUPRC, during a stakeholders’ engagement event in Abuja.
Karimu emphasized the significance of these fund managers as they play a crucial role in ensuring the long-term sustainability of the host communities even after the cessation of oil and gas operations. The NUPRC received a total of 37 applications from fund managers, out of which 19 were fully approved to participate in managing the funds. The list of approved fund managers can be found on the NUPRC website, providing oil companies with the necessary information to advise their management committees or board of trustees in selecting the appropriate candidate. Karimu also mentioned that more fund managers would be approved in the future.
The allocation of funds for the development of host communities is in line with Chapter Three of the Petroleum Industry Act 2021, which is dedicated to host communities’ development. The NUPRC’s regulation on this matter was released in June 2022 and is gradually being operationalized.
Funds for host communities’ development will be sourced from three percent of the operational expenditures of oil companies, as well as donations, gifts, and grants. This financial support aims to foster the growth and well-being of the host communities, recognizing their contribution to the oil and gas sector.
By approving fund managers, the NUPRC ensures proper and effective management of these funds, enabling the host communities to benefit from the resources allocated to their development. The involvement of fund managers will help ensure transparency, accountability, and efficient utilization of the funds for the intended purposes.
The announcement of these approved fund managers marks a significant step in the implementation of the Host Comply Technology Solution developed by the commission. This technology will aid in monitoring and managing the funds, providing a streamlined approach to support the host communities’ development initiatives. It reflects the government’s commitment to promoting sustainable development and socio-economic progress in the host communities affected by oil and gas operations.
The decision to engage fund managers underscores the importance of involving experienced professionals with a deep understanding of financial management in ensuring the optimal use of resources. It also reflects the government’s commitment to maintaining a balanced and equitable approach to the development of host communities.
In conclusion, the approval of 19 fund managers by the NUPRC highlights the government’s commitment to the long-term development and sustainability of host communities affected by oil and gas operations. This move aims to provide adequate financial management and support to these communities, ensuring their growth and well-being beyond the cessation of oil and gas activities. With the deployment of the Host Comply Technology Solution, efficient management and monitoring of the funds can be achieved, leading to transparency, accountability, and positive socio-economic transformation in the host communities.
