In accordance with the Petroleum Industry Act (PIA) and in a bid to provide a clear framework for implementation of host communities development provisions in the PIA, the Nigerian Midstream and Downstream Petroleum Regulatory Authority issued the Midstream Petroleum (Host Communities Development Trust) Regulations (Midstream Regulations) in 2024 – two (2) years after the Nigerian Upstream Petroleum Regulatory Commission (Commission) unveiled the Nigeria Upstream Petroleum Host Communities Development Regulations, 2022 (Upstream Regulations).
This newsletter examines the key provisions of the Midstream Regulations in relation to the establishment and administration of the Host Communities Development Trust, the execution of relevant obligations by stakeholders, and the establishment and funding of the Host Communities Development Fund, while contrasting these with the approach taken by the Commission in the Upstream Regulations.
