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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Page 23 of 35 
 
(a) 
act with honesty and fairness; 
(b) 
act with skill, care and diligence; 
(c) 
act in the interest of the host communities; 
(d) 
act with independence, objectivity and in 
accordance with the Act;  
(e) 
apply the sums in accordance with the host 
communities development plan and the Act; 
(f) 
refuse to participate in any business relationship 
or accept any gift that could reasonably be expected 
to affect its independence or objectivity. 
(g) 
disclose any conflict of interest; and  
(h) 
keep proper account and accurate records. 
 
30.The reserve fund shall be managed by the fund manager in 
accordance with the provisions of the Act and these Regulations, 
provided that where requested by the licensee and the 
management committee, the fund manager shall disburse the funds 
for utilization.  
 
Management of 
the Reserve Fund 
31(1) 
The licensee shall render annual returns to the Authority in 
relation to the Fund, which shall include - 
(a) an audited report of the Fund detailing amongst others, payments 
into and out of the funds and the purposes for which such payments 
were made;  
(b) any approved withdrawals outside of the approved host 
communities development plan and the basis for such withdrawals; 
and 
(c) any other information as may be prescribed by the Authority from 
time to time. 
 
(2) A licensee who fails, neglects or refuses to file the annual returns 
shall be liable to -  
(a) administrative penalty of NGN100,000.00; and  
(b) in the case of a continuous offence, to an additional administrative 
penalty of NGN 100,000.00 for each day during which the offence 
continues.  
 
(3) Where the licensee provides evidence as to inability to provide 
annual returns as at and when due arises from the refusal of the Board 
of Trustees to provide same promptly, the licensee shall be entitled to 
Oversight powers 
of the Authority 
over the Fund.