The Host Community Development Trust (HCDT) has risen to N373bn as of October 13, 2025, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said, adding that at least 536 community projects are ongoing simultaneously.

The NUPRC said in a statement that the fund comprises N125bn and $168.9m.

Section 235 of the Petroleum Industry Act of 2021, mandates settlors (oil companies) to incorporate Host Community Development Trust for the benefit of host communities where they operate.

The HCDT requires oil companies to deposit 3% of their operating expenditures of the preceding financial year into a trust fund which will be housed in a bank with BBB rating.

The PIA further stipulates that the settlor shall for the purpose of setting up the trust, in consultation with the host communities, appoint a board of trustees which shall be registered by the Corporate Affairs Commission as a corporate body.

The oil company then undertakes a NEEDS assessment that will metamorphose into the community development plan for the purpose of determining the projects that will be executed.

The fund is often dedicated to community development projects spanning infrastructure, education, healthcare, and environmental protection.

It gives communities a sense of ownership and is expected to reduce incidents of sabotage on oil facilities like pipeline vandalism, ensures the communities receive direct benefits from petroleum operations like social economic, educational development, empowerment of youth and overall reduction of restiveness in the Niger Delta region.

These trusts are overseen by a Board of Trustees and a Management Committee, ensuring community involvement in development efforts.

While the NUPRC does not have direct access to the funds, it monitors the fund through a dashboard known as HostComply. The Commission also monitors the implementation of the fund as mandated by the extant laws.

Obagi Pilot Phase

In line with the PIA, the NUPRC last month facilitated the delivery of over 10 life-changing projects and the flag-off of more than 10 others under the Obagi Host Community Development Trust (HCDT) in Rivers State, operated by TotalEnergies.

These projects were officially handed over to the communities hosting OML 58 during a two-day project commissioning and flag-off ceremony held from September 24–25, 2025, at Ogbogu Community in Ogba Egbema Ndoni Local Government Area of Rivers State.

This milestone marks a defining moment in the implementation of the HCDT provisions under Section 235 of the Petroleum Industry Act (PIA) 2021 and stands as a testament to the NUPRC's commitment to delivering on its mandate.

The projects delivered include demolition and construction of two-storey building classroom blocks with 18 fully furnished standard classrooms size of 56 square metres UBEC standard at Ogbogu Community, Ogba Egbema Ndoni LGA; remodelled Ogbogu Cottage Hospital with 20 beds capacity and a new newly constructed diagnostic centre and revatalisation and infrastructure upgrade of 1200 capacity Ogbogu Ultra Modern Civic Centre in Ogbogu community, Ogba Egbema Ndoni LGA.

Others are fully constructed 260 metres asphalt pavement at Obe Road, Oboburu Community, Ogba Egbema Ndoni LGA and fully constructed 320 metres reinforced concrete pavement at SDA Road, Oboburu Community in Ogba Egbema Ndoni LGA.

The HCDT also delivered the construction of Amah Bottling Water Factory, Amah Community, Ogba Egbema Ndoni LGA, with a production capacity of 1500 bottles per hour and satchet water machine with a capacity of 2000 per hour; construction of admin and security buildings, procurement of Gas Skid Plant in Erema Community, Ogba Egbema Ndoni LGA; renovation, procurement and installation of student writing desk and other modern facilities at Akabuka South Primary School and renovation, procurement and installation of student writing desk and other modern facilities at Akabuka North Primary School.

These projects were developed based on the needs and priorities defined by the communities themselves, in line with the Host Communities provisions of the PIA, 2021.

Speaking during the handover ceremony, the Commission Chief Executive, Engr. Gbenga Komolafe, represented by the Executive Commissioner, Health, Safety, Environment, and Community, Capt. John Roland Tonglagha, stated that the projects will address issues related to basic education, healthcare, employment, and more. 

He encouraged host communities to take ownership of the infrastructure and collaborate with upstream operators to grow the oil industry and deliver national prosperity.

The NUPRC boss also appreciated President Bola Tinubu for his strong commitment and initiatives, which have created an environment conducive to new investments in the upstream sector. 

The Governor of Rivers State, represented by Deputy Governor, Professor (Mrs) Ngozi Nma Odu, expressed delight over the timely delivery of the projects by the Obagi HCDT. She noted that in previous administrations, “Funds were sent to communities but were not fully utilised the way it is now.”

In his remarks, the Senate Committee Chairman on Oil and Gas Host Communities, Senator Benson Agadaga, noted that host communities are now reaping the dividends of the PIA’s successful implementation. He emphasised that peace in the Niger Delta would help the Commission meet its production target of over two million barrels per day.

He said, “This is a challenge to other HCDTs to do the same because the little peace we are seeing today in the Niger Delta is because of the achievements of the PIA, and the host communities are no longer as hostile as before.”

The Managing Director of TotalEnergies Upstream Companies in Nigeria, Matthieu Bouyer, expressed pride in being the first to deliver on the HCDT mandate. He said the speed of the project delivery reflects the company’s commitment to sustainable economic development in host communities.

He said, “We are one of the first, if not the first, International Oil Companies to create and fund the Trust two years ago, which of course, is the Obagi HCDT. Within the community development plan, there are more than 500 projects currently identified, touching more than 60 communities.”

He described the Obagi HCDT as a shining example of what is possible when trust and policy are aligned. “I am proud to support this project, which has created more than 1,000 jobs and will impact over 30,000 people,” he added.

Also, the Chairman of the Obagi HCDT Board of Trustees, High Chief Dike Hopeson Dike, assured the Commission, TotalEnergies, and other stakeholders of the communities’ continued cooperation. He noted that the projects will play a key role in transitioning beneficiaries from poverty to prosperity.

He said, “In less than one year, we have given our people over 125 units of 5,000-litre solar boreholes, and as of today, we have solved over 70% of our water problem.”

Commission Chief Executive, NUPRC, Engr. Gbenga Komolafe

... Approved 79 FDPs with $39.98 bn investment in Two Years

... Rig count jumps by 762.5% 

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that the nation’s petroleum industry is on a fast-track to recovery, following the implementation of the Petroleum Industry Act (PIA), which established the Commission in 2021.

In a statement issued on Sunday, the Commission highlighted increased industry activity, enhanced revenue to the Federation, and a surge in social infrastructure development in host communities. This growth, it said, is driven by billions of dollars in asset farm-out deals, field re-entry and new development programs, exploration licensing rounds, and gas commercialization efforts.

According to Eniola Akinkuotu, Head of Media and Strategic Communication at the NUPRC, the Commission has recorded 16 major improvements in the petroleum industry since it replaced the defunct Department of Petroleum Resources under the PIA. These achievements were made despite legacy challenges inherited from the pre-PIA era.

Mr. Akinkuotu stated that the Commission exceeded its revenue targets for the Federation by 18.3% in 2022, 14.65% in 2023, and an impressive 84.2% in 2024, despite global market volatility and production fluctuations.

Between 2024 and 2025, the Commission approved 79 Field Development Plans (FDPs), representing a potential investment of $39.98 billion. Of this, $20.55 billion was tied to 2024 approvals, while $19.43 billion has been approved so far in 2025.

Since its establishment, crude oil production has steadily risen, with current average daily production reaching 1.65 million barrels of oil per day (Mbopd). The Commission expects this to grow to 2.5 Mbopd by 2027 through its Project 1 Mbopd initiative.

Mr. Akinkuotu emphasized that the exploration bid round—considered the gateway for new entrants—has been digitized to ensure transparency and reduce human interference.

“It was the most transparent bid round on record in Nigeria’s upstream petroleum history as it leveraged digital technology, devoid of any human interference, in a manner adjudged to be in line with global best practices; which was even attested to by the Nigeria Extractive Industries Transparency Initiative (NEITI),” he said.

In addition to a transparent licensing process, the Commission has activated the “drill-or-drop” condition to prevent players from hoarding oil acreages.

“This is designed to ensure the optimal use of oil assets and prevent dormant fields from tying up potential reserves. This policy successfully identified 400 dormant oil fields and has also propelled complacent oil companies to take quick action,” he stated.

Oilfield activity has surged, with rig count rising by 762.5% in four years—from eight rigs in 2021 to 69 as of October 2, 2025—a strong signal of renewed investor confidence.

The Commission also reported the drilling and completion of 306 development wells between 2022 and 2025, marking significant progress in Nigeria’s upstream sector.

Further achievements include the issuance of Nigeria’s first Petroleum Exploration License (PEL) for a massive offshore geophysical survey spanning 56,000 km² of 3D seismic and gravity data. The Commission also reprocessed 17,000 line-kilometers of 2D seismic data and 28,000 square kilometers of 3D seismic data, leading to clearer imaging of petroleum systems and better-informed exploration decisions. Additional data includes: 11,300 km² of new 3D seismic data processed to PSDM and 80,000 km² of Multibeam Echo Sounding & Seafloor Geochemical Coring data

In 2024, the NUPRC approved several billion-dollar divestments, which it explained were aimed at allowing investors to re-order their portfolios and focus on deep offshore developments.

To enhance regulatory clarity, the Commission developed 24 forward-thinking regulations, with 19 already gazetted and five awaiting gazette.

“These forward-thinking Regulations serve as tools for transparency and creation of enabling investment climate and benchmark best practices,” the Commission stated.

As part of its gas flare elimination strategy under the Nigerian Gas Flare Commercialization Programme (NGFCP), the Commission has completed awards of flare sites to successful bidders, with the objective of attracting at least $2.5 billion in investments.

The NUPRC’s achievements have also garnered recognition. It received the 2024 Overall Best Performing Parastatal SERVICOM Unit (PSU) Award, along with the 2024 Best Performing PSU, Team B Award. It was also named Best Regulator 2025 by the Association of Energy Correspondents of Nigeria (NAEC) and received over 60 awards from various organizations.

Regarding host communities, the Commission reported that Host Community Development Trusts have so far remitted ₦122.34 billion and $168.91 million (over ₦358.67 billion combined, based on current exchange rates), funding 536 projects including schools, healthcare centers, roads, and vocational centers across the Niger Delta and beyond.

This development, the Commission said, has significantly curbed crude oil theft. Oil losses have dropped by 90%, from 102,900 barrels per day in 2021 to 9,600 bpd in September 2025.

Two key regulations—Upstream Measurement Regulation and Advanced Cargo Declaration Regulation—were credited with improving transparency in hydrocarbon accounting.

Regionally, the Gbenga Komolafe-led NUPRC has taken a leadership role by spearheading the formation of the African Petroleum Regulators Forum (AFRIPERF). The forum, launched during Africa Oil Week, was attended by 16 African countries, including Nigeria, Ghana, Somalia, South Africa, Angola, Kenya, and others.

“AFRIPERF provides regulators with the mechanism to harmonize oil and gas development policies to facilitate cross-border infrastructure development, benchmark fiscals and present strong voice for Africa in hydrocarbon advocacy globally,” the Commission said.

For the first time, the Commission has also significantly improved regulatory reporting and transparency across the sector, enabling investors, operators, and service providers to make data-driven decisions in what was once one of the world’s most opaque industries.

Commission Chief Executive, NUPRC, Engr. Gbenga Komolafe

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has faulted a report titled, ‘N8.41tn oil theft drains economy, fuels investors’ doubts’ published on the front page of The PUNCH on Wednesday September 24, 2025.

NUPRC said the report in question was based on a misinterpretation of crude loss statistics between 2021 and July 2025 which had been released by the NUPRC in the spirit of transparency and in line with the Petroleum Industry Act, 2021.

This was based on a statement released by the Commission, signed by Head, Media and Strategic Communications, Eniola Akinkuotu.

Recall that the commission had revealed on September 11, 2025 that daily crude oil losses had dropped to 9,600 barrels per day, the lowest since 2009 which was reported widely and accurately.

The Commission noted it was vindicated when the latest figures released by the National Bureau of Statistics (NBS) showed that Nigeria’s economy grew by 4.23% largely on the back of an increased oil output and two other sectors an-acknowledgement of the steady progress made by the industry to combat the menace of crude oil theft.

Against the foregoing, the report by The PUNCH is not only specious but lacks proper context for the following reasons:

"Firstly, crude oil losses have been on the downward trend due to collaborative efforts between the NUPRC, the Office of the National Security Adviser, the military, Operators and other relevant stakeholders. This collaboration through both kinetic and non-kinetic means, dropped oil theft from a staggering 102,900 in 2021 – when the Commission was established – to the current 9,600bopd representing over 90% reduction in losses.

"Also, in the misleading report, an exchange rate of N1,500/$1 is used from 2021 to 2025 to increase the figures and sensationalize actual losses when in actual fact, Nigeria’s exchange rate was less than N430 on the official market and barely N600/$1 on average between 2021 (when most of the crude theft occurred) and in mid-2023. The N8.41 trillion is therefore inaccurate. Attempting to situate it within the current 2025 federal budget is flawed.

"Furthermore, the methodology adopted by the Newspaper is significantly flawed because it lacks in-depth understanding of operations, crude oil price trends and exchange rate mechanisms.

"Nigeria has continued to meet its OPEC quota due to the Commission’s initiatives and working collaboratively with industry stakeholders to sustain and grow productions. Such initiatives include: the project 1 million barrels, implementation of the metering audit, restoration of shut-in strings and increased rig counts, facility uptime, creation of alternative crude evacuation mechanism etc.

"Furthermore, Nigeria now has the technical capacity to produce above two million barrels daily. The Commission is galvanizing Industry stakeholders – Operators, service providers (local and international), rig owners, off-takers, and financiers -  in order to fully unlock the potential, riding on the improved operating environment and social inclusion in operating areas.

It said the story also failed the integrity test as no attempt was made by the reporter to get a clarification from the commission in the spirit of fairness and balanced reporting.

CCE, NUPRC, Engr. Gbenga Komolafe

... Daily Losses Contained At 9,600 Barrels

Nigeria’s upstream oil sector is witnessing a dramatic turnaround, with crude oil losses from theft and metering issues dropping to their lowest levels in nearly 16 years. 

In July 2025, daily losses stood at 9,600 barrels per day (bpd), the lowest figure since 2009 when losses dropped to all-time low of 8,500 bpd.

This is based on trends of crude oil losses year-to-date July 2025, released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

This progress marks a major leap forward in the Commission's relentless drive to eliminate all forms of crude losses across Nigeria's oilfields and pipelines. 

Between January and July 2025, crude oil losses were contained at 2.04 million barrels, averaging 9,600 barrels per day over the seven-month period. This marks a clear departure from the high-loss years that have long plagued the industry.

By comparison, the entire 2024 calendar year recorded 4.1 million barrels lost at a daily average of 11,300 barrels. Remarkably, in just the first seven months of 2025, losses were cut by 50.2%, with only 2.04 million barrels lost over the period.

The figures for the period ending July 2025 also represent a dramatic 94.57% drop in crude oil losses compared to the full year of 2021, when Nigeria lost a staggering 37.6 million barrels at a daily average of 102,900 barrels. 

So far in 2025, only 2.04 million barrels have been lost, which is a reduction of 35.56 million barrels compared to the 37.6 million barrels lost in 2021, underscoring the scale of progress made in just four years.

Crude oil losses in 2021 were the highest recorded in nearly 23 years, making it the peak year between 2002 and July 2025. 

Since the implementation of the Petroleum Industry Act in 2021, Nigeria has recorded steady progress in reducing crude oil losses. In 2021, losses stood at 37.6 million barrels, averaging 102,900 barrels per day. By 2022, this dropped to 20.9 million barrels at a daily average of 57,200 barrels.

The downward trend continued in 2023, with losses reduced to 4.3 million barrels at 11,900 barrels per day. Even more progress was made in 2024, as losses were further contained to 4.1 million barrels, averaging 11,300 barrels per day.

The Commission has adopted a balanced mix of kinetic and non-kinetic strategies in tackling oil losses. On the kinetic front, the Commission has continued to collaborate closely with security agencies, operators and communities.

On the non-kinetic front, NUPRC has implemented strategic regulatory measures to close systemic loopholes. One key initiative is the metering audit across upstream facilities to ensure accurate measurement of production and exports.  

To further strengthen control, the NUPRC under the leadership of Engineer Gbenga Komolafe approved 37 new crude oil evacuation routes to combat oil theft.