The federal government in a bid to implement Section 235 of the Petroleum Industry Act on Tuesday unveiled the template for the Host Communities Development Trust.
The unveiling, which was done during the issuance of Petroleum Prospecting Licence for the 2020 marginal field bid round held in Abuja, will attract dividends of the PIA to the host communities.
The PIA which was signed into law last year by President Muhammadu Buhari has opened up many opportunities for investors in the area of gas.
Section 235 of the PIA provides for the incorporation of Host Communities Development Trust by the Settlors (the oil and gas companies) for the benefit of the host communities.
The Act placed the responsibility to set up the HCDT and appoint the Board of Trustees (BoTs) on the companies in consultation with the host communities.
Similarly, Section 247 of the Act requires the BoT to set up a management committee to handle the general administration of the fund.
The HCDT provided by the PIA proposes to advance and propagate educational development for the benefit of members of the host communities within the scope of funds available to the BoTs for such purposes.
Speaking at the event, the Chief Executive, Nigeria Upstream Petroleum Regulatory Commission, Gbenga Komolafe, said the unveiling of the template was imperative as the Commission is committed to transparency in its processes.
