On June 24, 2022, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) successfully gazetted the host community regulations and guidelines, making the provisions of the Petroleum Industry Act (PIA) operational toward advancing host community benefit derivation. The PIA, which was recently signed into law, is one of Nigeria’s most audacious attempts to reform the petroleum sector. The Act aims to provide the Nigerian Petroleum Industry with a legal, governance, regulatory, and fiscal framework.
This significant achievement is the result of an advocacy effort initiated by a group of civil society organizations (CSOs) led by the Civil Society Legislative Advocacy Centre (CISLAC) that is working to increase citizens’ voices and demand openness and effective use of resources accrued from the extractive sector at all levels by advocating for appropriate legal and policy frameworks and their implementation.
They achieved these results through stakeholder engagement, alliance building, and knowledge exchange, leveraging internal and external networks and relationships with key stakeholders such as the Nigeria Extractive Industries Transparency Initiative (NEITI), Corporate Affairs Commission (CAC), Economic and Financial Crimes Commission (EFCC), and Nigerian Financial Intelligence Unit (NFIU), as well as support from Strengthening Civic Advocacy and Local Engagement (SCALE) on the consultative forum organized for the review of extractive sector framework and expedite action on the approval process for the regulations.
NUPRC gazetted the Six Petroleum Host Community regulations in response to the commitment made to the CISLAC-led Group.
The six regulations include:
1. The Nigerian Upstream Fee and Rent Regulations
2. The Petroleum Licensing Round Regulations
3. Domestic Gas Delivery Obligations Regulations
4. The Nigeria Conversion Regulations
5. Nigeria Royalty Regulations
6. The Nigeria Host Community Regulations
The petroleum host community regulation will allow for the establishment of the Host Community Development Trust Fund as well as the finalization of roles and responsibilities in the regulation of host community development. This development now gives the host community access to 3% of international oil companies’ expenses. The funds will be used to help communities in petroleum-producing areas develop their economic and social infrastructure. On June 28, 2022, the template and procedural guidelines for the Host Community Development Trust Fund were unveiled.
To gain access to this fund, communities must form committees to manage and administer the fund, which includes a board of trustees, management, and advisory committees. In addition to advocating for the publication of host community regulations and guidelines, CISLAC-led CSOs are currently supporting the formation of these committees and structures and also training the community members to better understand the regulations and how to gain access to the funds.
The regulations can be found here: https://bit.ly/3MNGiEJ

The SCALE project is a United States Agency for International Development (USAID)-funded five-year project (2020-2025) designed to strengthen the financial, management, and advocacy capacity of CSOs in Nigeria to create a more accountable, transparent, peaceful, and democratic Nigeria with more effective and efficient public service delivery.