NMDPRA Enforces 3% Contribution for Host Communities

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has intensified efforts to enforce a mandatory 3% annual contribution to the Host Community Development Trust Fund (HCDT) as stipulated by the Petroleum Industry Act 2021. This enforcement aims to ensure compliance within the sector and enhance the development of host communities impacted by oil production.

A digital portal has been introduced to improve transparency and accountability, allowing for real-time monitoring of contributions. NMDPRA's Chief Executive, Rabiu Umar, and Executive Director of Health, Safety, and Environment, Mustapha Lamord, emphasized the importance of this framework during a stakeholder sensitization workshop held in Port Harcourt.

The workshop aimed to clarify the operationalization of the HCDT framework and establish guidelines for managing the trust fund. Dumnamen Dekor, Chairman of the House of Representatives Committee on Host Communities, commended NMDPRA for organizing the forum, which aims to ensure that host communities derive maximum benefits from oil and gas operations.