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Library / Page 1 of 35 MIDSTREAM PETROLEUM HOST COMMUNITIES DEVELOPMENT TRUST REGULATIONS, 2024

Page 1 of 35 MIDSTREAM PETROLEUM HOST COMMUNITIES DEVELOPMENT TRUST REGULATIONS, 2024

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(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) 
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 from time to time.  
 
 
 
PART V-ESTABLISHMENT AND MANAGEMENT OF THE HOST COMMUNITIES 
DEVELOPMENT TRUST  
 
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 Trustee of the Fund 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 the 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 
amounts standing to the credit of the collection 
account shall be paid and utilised in accordance with 
these Regulation; and 
(d) 
the administrative cost account to be entrusted 
to the licensee, into which an amount not exceeding 
5% of any amount standing to the credit of the 
Establishment 
of 
the 
Host 
Communities 
Development Trust 
Fund 
by 
the 
licensee