Appraising the Role of Host CommunityDevelopment Trust in the Development of Oil and Gas Bearing Communities in Nigeria Under the Petroleum Industry Act (PIA) 2021

Publication Details

Publication Date

10/07/2026

Volume / Issue

Vol 1, Issue 2 (2026)

Article No.

025

Journal

British Journal of Contemporary Research

Received

23 Jun 2026

Views

3

Downloads

0

Abstract

The Petroleum Industry Act 2021 radically introduced the Host Communities Development Trust (HCDT) to activate community sustainable development, empower citizens and mitigate ravaging perennial conflicts between the settlors and the host communities. This article thoroughly appraised the structured framework of the HCDT, to evaluate its content, scope, composition and effectiveness in addressing community concerns within and among the host communities, by assessing the governing organs of the HCDT; the settlor, management committee, advisory committees in fostering and promoting peaceful coexistence in their various domains. Using the doctrinal methodology to appraise chapter three of the PIA 2021, the Regulations and other existing relevant literatures, to discover the strengths and weaknesses of the HCDT's governance structure, the article reveals that the HCDT framework provided a much better structured arrangement for more coordinated community development programs through the regular and streamlined contribution of the settlors. The article concludes that the HCDT is a great innovation to resolve the perennial problems of the communities and correct the anomalies of the ad-hoc community development programs, CSR and the gMoU of the multi-national oil and gas companies to enhance host communities prosperity through a new initiative on trial. The article recommends the amendment of the enabling Act and Regulation to whittle down the overbearing powers of the settlors, prioritize transparency through regular and well published audit report by carried out by independent and qualified auditors. It further recommends capacity building of the organs of the HCDT, the settlors as to functions, powers and authority of the organs, technical capacity building for the local contractors so effective and seamless execution and delivery of HCDT jobs to enhance sustainable development and peaceful relationships between the settlor and host communities.

License

This article is published under the Creative Commons Attribution 4.0 International License . Free to read, share, and adapt with attribution.