Summary

This project which will be implemented in three Niger Delta states (Bayelsa, Delta and Rivers in six host communities: Otuasega, Imiringi, Eruemukhuwarien, Owevwe, Umuebulu 2-Oyigbo and Komkom, with an estimated population of 250,000) aims to shape Host Community Development Trust’s (HCDT) implementation to maximise the potential for community benefit and minimise the risks HCDTs and the associated legislative framework potentially present. This will be done through supporting host communities to better understand HCDTs and collectively represent their interests; developing a shared set of recommendations for the implementation of HCDTs which emphasise community participation, transparency, equity and fairness, and the prioritisation of community development.

Aims

We aim to convene a coalition of stakeholders representing host community interests (host community members, civil society and groups such as HOSTCOM) to provide collective representation; convene this group with the oil and gas sector and government to develop a shared set of guidance for the operation of HCDTs; create a HCDT Guide, which will be disseminated to;

a. Host communities to help them better represent their collective interests,

b. Oil and gas companies to encourage alignment with the guide’s approach, and

c. Nigeria Upstream Petroleum Regulatory Commission to promote further improvements to framework for implementation of HCDTs;

and by supporting implementation of the guide in six pilot host communities, with a focus on supporting HCDTs to design effective livelihood/economic development projects where these have been identified as priorities in needs assessments.

Key Activities

  • Convene regional stakeholders representing the interests of host communities and document a shared set of recommendations for participatory and beneficial implementation of the HCDT process.
  • Convene a HCDT Best Practice Working Group and draft the Host Community Development Trust and Livelihoods Guide.
  • Launch, disseminate and secure commitment to the Host Community Development Trust and Livelihoods Guide
  • Support implementation of the Guide and associated livelihood interventions in six pilot host communities.

Context

Communities in the Niger Delta have borne the brunt of the negative impacts of the oil and gas industry while seeing little benefit in return. Pollution from the industry has led to the loss of traditional livelihoods in fishing and agriculture, and severe health impacts. Unemployment rates in some Niger Delta states regularly reach 40% (Nigerian Bureau of Statistics data), and it is estimated that children in the Niger Delta are twice as likely to die in their first month of life if their mother lived near an oil spill before conception (Bruederle & Hodler, 2017). The massive oil wealth generated by the region has created economic dependency, and undermined the social contract between citizens, elected leaders and government more broadly; public funds are often misused and service provision is poor – in 2019, SDN worked with six communities to track 133 NDDC-funded projects, and found that half of these had been abandoned or could not be found.


However, at SDN we know that through collective action by citizens and working with progressive leaders in communities, civil society, the private sector and government, change can happen. The creation of Host Community Development Trusts (HCDTs) under the Petroleum Industry Act (PIA) in 2021 presents significant opportunities to support the equitable distribution of benefits from the industry and to meet development priorities of host communities.

Project resources

Opportunities to improve the Host Community Development Trusts under Nigeria's Petroleum Industry Act

Opportunities to improve the Host Community Development Trusts under Nigeria’s Petroleum Industry Act

This research highlights how the provisions of the Petroleum Industry Act (PIA) targeted toward host community development create both opportunities ...
SDN’s New Project to Help Make the HCDTs Work

SDN’s New Project to Help Make the HCDTs Work

At SDN we know that change can happen through collective action by citizens and working with progressive leaders in communities, ...
Practical Approaches for the Effective Implementation of Host Community Development Trusts (HCDTs)

Practical Approaches for the Effective Implementation of Host Community Development Trusts (HCDTs)

This Handbook outlines practical approaches to implement the Host Community Development Trust (HCDT) section of the Petroleum Industry Act (PIA), ...

Funder