Host Community Development Trusts
Petroleum Industry Act 2021
Corporate Social Responsibility in Nigeria
On February 27, 2025, the Nigeria Extractive Industries Transparency Initiative (NEITI) called on oil companies operating in the country to enhance their commitment to the development of host communities. During the official presentation of a policy brief titled “Giving Host Communities Their Due: Revisiting the Three Percent OPEX Funding Framework for Host Community Development Trusts in Nigeria,” NEITI’s Executive Secretary, Dr. Ogbonnaya Orji, emphasized the importance of the Host Communities Trust Fund established under the Petroleum Industry Act (PIA) 2021. This fund aims to improve the welfare of host communities, ensure sustainable development, and foster peaceful coexistence between industry operators and their host environments.
Dr. Orji highlighted NEITI’s role in promoting transparency and accountability within Nigeria’s extractive sector, particularly in tracking funds allocated to host communities. He also urged these communities to take ownership of local projects, ensuring their proper maintenance and sustainability. Additionally, Dr. Dekor Robinson, Chairman of the House Committee on Host Communities, stressed the significance of the three percent allocation from operating expenses, encouraging communities to effectively utilize these funds to achieve their development objectives.
