Library / B 889 Federal Republic of Nigeria Official Gazette No. 189
B 889 Federal Republic of Nigeria Official Gazette No. 189

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B  904
(2)  Each host communities development trust may receive donations,
gifts, grants or honoraria that are provided to such host communities
development trust for the attainment of its objectives.
(3)  Profits and interest accruing to the reserve fund of host communities
development trust shall also be contributed to the applicable host communities
development trust.
(4)  The licensee shall make its first annual contribution to the Fund
within one month after the Fund has been established by the Board of Trustees,
and thereafter make contributions on an annual basis within three months to
the end of each year.
(5)  The annual contribution made in the preceding year shall not form
part of the operating expenditure for the determination of annual contribution
for the succeeding year.
(6)  Where the licensee is responsible for host communities in different
areas of operation, the 3% share of the operating costs due to each community
shall be determined based on the operating costs that are proportionally
attributable to each area of operation, except for shallow and deep offshore
midstream operations that the operational areas have been tied to
corresponding communities.
(7)  Where the licensee establishes “any other community” as a host
community, the licensee, subject to the prior approval of the Authority, shall
allocate a share of the operating cost to the new community.
(8)  Contributions for littoral communities shall be pooled and distributed
amongst beneficiary trusts equitably.
(9)  In determining operating expenditure, the licensee shall take into
consideration non-capital production costs, cost of sales, administrative expenses
and any other expenses incurred for the operations of the business on a day-
to-day basis as included in the audited financial report provided that such
expenditures shall not include capital expenditures, impairment, depreciation
or amortisation.
(10)  The licensee may, subject to obtaining the approval of the Authority,
discontinue contribution to the reserve fund or disengage the Fund Manager
or decline to hire a Fund Manager in order to reduce expenditures, where the
available funds for administration are insufficient to fund ongoing operations.
(11)  The licensee shall, in support of its application for approval to
discontinue contribution to the reserve fund, disengage the fund manager or
decline to hire a fund manager, provide to the Authority such additional
information as it may direct.