A non-governmental organisation, Connected Development, on Thursday called for the timely disbursement of the 3% by the oil companies known as Settlors, and the transparent selection of the Board of Trustees into the Host Communities Development Trust Fund.
Speaking during the training of stakeholders, Civil Society Organisations, Community-Based Organisations, HCDT members, and the media held in Owerri, Imo State capital, the Assistant Director of Programmes and Community Engagement of Connected Development, Hyeladzira Mshelia, said, “There’s a need to strengthen the Host Communities Development Trust Fund’s (HCDT) governance structure and formalise a more transparent and inclusive process for membership selection, especially integrating project management training, proposal writing, robust budget/financial management planning, and proper communication of HCDT’s outputs and outcomes that will bolster the HCDT’s framework in Nigeria for unlocking opportunities for sustainable project investment.
“The essence of the training was to train and build the capacity of the participants on project design, management, implementation, procurement, execution, funds management, and communication.”
Mshelia pointed out that there’s a need to ensure that the Settlors adhere to the dictates of the Petroleum Industry Act, which stipulates the remission of 3% to the coffers of the Trust for effective delivery on projects that benefit the host communities.
She also called for capturing the demands and priorities of the communities into the HCDT.
“The delay in the disbursement of the 3% hinders the needed development expected to happen within the host communities. The host communities development aspect of the Petroleum Industry Act (PIA) mandates the payment of 3% of a settlor’s (oil-prospecting company’s) annual operating expenditure to the Host Communities Development Trust (HCDT) for the benefit of oil-producing areas.”
The State Support PVP Project Officer of Connected Development, Chimezie Ebosie, noted, “There’s a gap in the implementation of the Petroleum Industry Act of 2021, which talks about the open selection of the Board of Trustees and remission of 3% by the Settlors to the host communities for the use of their land, water, among others.”
Ebosie said the need to move away from what is on paper to implementation is key to the development of the communities.
