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Several Host Community Development Trusts (HCDTs) established under Nigeria’s Petroleum Industry Act (PIA) are struggling to deliver meaningful development and transparency in Rivers State, a new assessment by the civil society organisation, Policy Alert, has revealed.
The findings are in the Host Communities Development Index (HCDI) 2026 presented at the Host Communities’ Development Forum held in Port Harcourt on Monday, 9 March.
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The report presented by the research consultant, Mfon Gabriel evaluated how effectively the nine trusts in Rivers State are implementing development programmes in oil-producing communities.
The trusts are Obagi, Foursome, Logistic Base, Trans-Niger Pipeline Section 1, Trans-Niger Pipeline Section 2, Kula-Belema, West Africa Engineering Plant, Soku-Akuku, and Afam.
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They were created under the PIA, which mandates that oil companies set aside 3 per cent of their annual operating expenditure for community development through the HCDTs.
But the report tagged “Beyond Tokenism: A Gender and Innovation Ranking of Host Community Development Trusts in Nigeria”, shows that many trusts in Rivers are yet to translate the promises embedded in the law into tangible development outcomes for host communities.
Governance gaps persist
The report notes that while a few trusts demonstrate structured governance practices and community engagement, many others still operate with limited transparency.
“Too many trusts continue to govern with opacity, treating community engagement as a compliance ritual rather than a governance principle,” the report stated
According to the assessment, the absence of public financial disclosures, weak community feedback mechanisms, and internal governance disputes are the recurring challenges undermining the credibility of several trusts.
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For instance, the report highlighted the situation of the Afam HCDT, which, two years after its inauguration, had not approved a Community Development Plan and had received no funding from its settlor, the NNPC Exploration and Production Limited.
The report said such delays undermine the entire framework designed to ensure host communities benefit from oil and gas operations.
Few trusts show strong governance
Despite the challenges, some trusts in Rivers were cited for relatively stronger governance structures.
These include the Obagi Host Community Development Trust and the Logistics Base Trust, which the report says have maintained governance stability and community engagement processes.
The trusts also navigated the transition following Shell Petroleum Development Company’s divestment of assets to Renaissance Africa Energy Company in 2024 and 2025 without major institutional disruption.
Women largely excluded
Another major concern highlighted in the report is the persistent under-representation of women in governance structures of the trusts.
While some development programmes target women, the report found that female participation in Boards of Trustees and management committees remains limited across most HCDTs in Rivers.
The Foursome Host Community Development Trust in Rivers was identified as a rare example where women occupy about 40 per cent of board positions and hold an executive-level seat in management.
“Trusts appear more willing to design gender-responsive programmes than to appoint women into the governance structures that control those programmes,” the report noted.
Environmental action still weak
Many of the trusts scored low on environmental sustainability, a key concern in the oil-polluted Niger Delta.
The report notes that environmental restoration projects, such as land remediation, greening, and ecosystem recovery, remain limited across the assessed trusts.
The Soku-Akuku Toru Trust in Rivers State was the only trust to record a greening activity in the cohort, although the report noted that the initiative remains small in scale.
Communities unprepared for energy transition
The assessment also found that most HCDTs in Rivers have done little to prepare host communities for the global transition away from fossil fuels.
Investments in renewable energy, green skills development, and economic diversification remain minimal across the trusts evaluated.
According to the report, none of the nine trusts assessed in Rivers has developed a comprehensive energy-transition strategy.
Policy Alert said the goal of the index is to strengthen oversight and ensure that host communities benefit from the resources extracted from their lands.
“The effectiveness of HCDTs depends on governance quality, regulatory oversight, settlor compliance and inclusive participation by host communities,” Tijah Bolton-Akpan, the executive director of Policy Alert, said.
Awards were presented to Obagi, Foursome and Logistic Base trusts, which ranked first, second and third, respectively, in gender equality and social inclusion, energy transition responsiveness, governance and accountability, and environmental sustainability.
