Spaces for Change|S4C, in collaboration with the Ford Foundation, has unveiled a comprehensive report titled “Transitioning from GMOU to HCDT: Wins, Challenges, and Further Actions,” shedding light on the implementation of Host Community Development Trusts (HCDTs) in Nigeria’s oil-producing regions.

In a statement, Victoria Ibezim-Ohaeri, Executive Director Spaces for Change |S4C stated that the report, presented during a Technical Session of the House of Representatives’ Committee on Host Communities, evaluates the performance of indigenous and international petroleum companies in fulfilling their obligations under the Petroleum Industry Act (PIA) 2021.

The transition from the Global Memorandum of Understanding (GMOU) to HCDTs, as mandated by Chapter 3 of the PIA 2021, serves as a focal point of the report’s analysis. While highlighting the successes and hurdles encountered in HCDT implementation, the report underscores the pivotal role of these trusts in fostering sustainable development and harmonious relationships between oil corporations and host communities.

Identified within the report are commendable practices observed in the execution of HCDTs across the Niger Delta. Notably, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has established a comprehensive database cataloging upstream companies that have established HCDTs in their respective host communities. Additionally, some indigenous oil firms have extended HCDT coverage to non-oil producing communities impacted by their operations, showcasing inclusivity in their approach.

However, the report also highlights concerning practices and contentious issues within HCDT implementation. These include a surge in litigation and protests within oil-producing communities, power imbalances favoring petroleum corporations, lack of transparency in the selection of community representatives for HCDT governance bodies, and resistance to innovation from oil companies, among others.

In response to these challenges, the 10th Assembly of the Nigerian Legislature, particularly the House of Representatives’ Committee on Host Communities, has expressed a firm commitment to addressing identified shortcomings. Hon. Dunmameme Dekor, Chair of the Committee, emphasized the importance of legislative oversight in ensuring the effective implementation of HCDTs.

The report concludes with recommendations aimed at enhancing HCDT implementation, including the expungement of Section 257(2) from the PIA and advocating for increased funding to regulatory bodies for community development initiatives.

The report serves as a crucial resource for policymakers, stakeholders, and the public, offering insights into the transition from GMOU to HCDT and outlining strategies to optimize the benefits accrued to host communities in Nigeria’s oil-producing regions.