Library / Midstream Petroleum (Host Communities Development Trust) Regulations 2024
Midstream Petroleum (Host Communities Development Trust) Regulations 2024

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(b)  determine and specify the projects to implement the specified
initiatives;
(c)  provide a detailed timeline for projects;
(d)  set out the reasons and objectives of each project as supported by
the host communities needs assessment;
(e)  provide for ongoing review and reporting to the Authority; and
(f )  contain such other matters as may be prescribed by the Authority
from time to time.
(2)  An approved host communities development plan shall not be amended
without the written approval of the Authority.
22.—(1)
The licensee shall provide the board of trustees with a matrix
for the distribution of the trust fund to host communities.
(2)  The fund distribution matrix shall set out —
(a)  the basis for proposed allocation of funds to host communities based
on equitable and economic principles in accordance with the approved
development plan;
(b)  a description of the existing program of host community support
prior to the Act, where applicable; and
(c)  such other matters that the Authority may specify.
PART V — ESTABLISHMENT AND MANAGEMENT OF THE HOST
COMMUNITIES’ DEVELOPMENT TRUST FUND
23.—(1)  A licensee shall establish a Host Communities Development
Trust Fund (the Fund) in the name of the trust.
(2)  The Fund shall be deposited in a designated account, in a commercial
bank duly licensed by the Central Bank of Nigeria with a minimum credit
rating of ‘BBB’ issued by at least, two rating agencies, one of which shall be
a rating agency incorporated in Nigeria and registered with the Securities and
Exchange Commission.
(3)  The Board of Trustees shall maintain in the same commercial bank
the following accounts —
(a)  the collection account, into which the licensee shall pay its annual
contribution to the Fund;
(b)  the capital fund account, into which 75% of the amount standing to
the credit of the collection account shall be paid and utilised in accordance
with these Regulations;
(c)  the reserve fund account, into which 20% of any amount standing to
the credit of the collection account shall be paid and utilised in accordance
with these Regulations; and
Fund
distribution
matrix
Establishment
of the Host
Communities
Development
Trust Fund
by the
licensee