The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has directed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to dissolve a disputed Host Community Development Trust (HCDT) within 48 hours as part of an ongoing investigation into alleged irregularities surrounding the implementation of the Petroleum Industry Act (PIA) in Anambra State.
The directive followed an investigative hearing conducted by the commission’s Investment Monitoring Committee into the operations of Sterling Oil Exploration and Energy Production Company (SEEPCO) and the administration of the Host Community Development Trust established for affected oil-producing communities.
During the hearing in Abuja, the committee expressed concerns that the trust was constituted without adequate consultation with the affected communities and questioned whether individuals recognised as community representatives truly reflected the wishes of the host communities.
Chairman of the committee and Federal Commissioner representing Anambra State, Dr. Ekene Enefe, instructed the regulator to address the concerns immediately.
“We are going to give you 48 hours to dissolve that Host Community Development Trust,” Enefe told officials of the NUPRC.
He also disclosed that the commission would issue SEEPCO an ultimatum to settle outstanding obligations allegedly owed to host communities, insisting that operators must fully comply with the Petroleum Industry Act.
The hearing also highlighted SEEPCO’s repeated failure to honour invitations from the committee. According to the commission, the company was absent despite previous engagements and has now been granted one week to appear before the panel and respond to allegations raised during the investigation.
RMAFC Chairman, Dr. Mohammed Shehu, described the investigation as a critical national assignment aimed at ensuring transparency and accountability in Nigeria’s petroleum sector.
According to him, the commission remains committed to protecting the interests of oil-producing communities and ensuring that statutory benefits guaranteed under the Petroleum Industry Act reach their intended beneficiaries.
“The commission remains committed to transparency, accountability and protection of host communities’ interests,” Shehu said while commending members of the Investment Monitoring Committee for their work.
Responding to the allegations, NUPRC’s Director of Host Communities, Mrs. Ufondu Ejiro, maintained that the regulator complied fully with the Petroleum Industry Act and the Host Community Development Regulations.
She said the disputed trust had been legally incorporated, adequately funded and structured in line with statutory requirements after processing community consultation records, governance documents, funding arrangements and Community Development Plans.
Ejiro also assured the committee that SEEPCO would honour the latest invitation and participate in the ongoing investigation.
However, counsel representing the affected communities, Peter Chukwudi, rejected the regulator’s position, arguing that several persons recognised as community representatives lacked the backing of the communities.
He further alleged that genuine consultations were not conducted before the trust was established and questioned the level of development in the oil-producing communities despite years of petroleum operations.
Also speaking, Anambra State Commissioner for Petroleum and Mineral Resources, Prof. Charles Ofoegbu, called for stronger collaboration between NUPRC and state governments in verifying community representatives and monitoring statutory compliance by operators.
Other commissioners on the panel echoed similar concerns, calling for improved transparency in verifying statutory contributions, stronger engagement with state governments and stricter oversight of petroleum operators.
The committee also received a preliminary forensic assessment of statutory HCDT contributions from its consultant as part of the investigation.
The Host Community Development Trust was introduced under the Petroleum Industry Act 2021 to ensure communities hosting oil and gas operations receive direct development benefits. Under the law, petroleum operators are required to contribute three per cent of their actual annual operating expenditure to the trust for community development projects, while NUPRC is responsible for regulating its incorporation, funding and governance.
