Evaluation of the Implementation Status of Host Communities Development Trusts in the Niger Delta

The Petroleum Industry Act (PIA) 2021 introduced the Host Communities Development Trust (HCDT) as a landmark reform to guarantee statutory benefits for oil and gas host communities. Each Settlor (licensed oil and gas company operating in or near host communities) is mandated to contribute 3% of its previous year’s operating expenditure (OPEX) to the Trust, run by local trustees and managers. This model replaces voluntary oil and gas company community development models, which are widely criticised for weak accountability and uneven impact. Four years on, this study provides one of the first community-centred assessments of the implementation status of HCDTs in the Niger Delta, enriched by direct insights from regulators.

 

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