By Rareview Energydesk
Accugas Limited, the Nigerian midstream subsidiary of Savannah Energy Plc, has inaugurated the Board of Trustees of its Host Communities Development Trust (HCDT), becoming the first midstream operator in Nigeria to inaugurate such a trust.
The inauguration covers host communities across Akwa Ibom and Cross River states and represents a significant step in implementing the host-community development framework established under the Petroleum Industry Act (PIA) 2021 and the subsequent Midstream Petroleum (Host Communities Development Trust) Regulations, 2024.
The regulations, issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), provide the framework for the establishment, administration and funding of HCDTs for communities hosting midstream petroleum facilities. They require qualifying midstream operators to establish trusts and contribute annually an amount equivalent to three per cent of actual operating expenditure attributable to their midstream operations affecting the relevant host communities.
Savannah said the new trust would provide a structured platform through which Accugas’ host communities can identify, prioritise and implement development projects based on their needs.
Nkoyo Etuk, Head of Stakeholder Relations and Regional Manager, Nigeria, Savannah Energy, said the inauguration builds on Accugas’ longstanding relationship with its host communities and its support for initiatives in education, healthcare, economic empowerment, infrastructure and other areas.
She said the trust would give communities greater responsibility, ownership and participation in determining development priorities.
“The establishment of this Trust provides an opportunity to build on these efforts through a framework that places greater responsibility, ownership and participation in the hands of the communities themselves,” Etuk said.
Cynthia Nzeh, Senior Manager, Host Community Development Trust at NMDPRA, described the inauguration as a milestone for Nigeria’s midstream sector, saying Accugas’ HCDT was the first midstream Host Communities Development Trust to be inaugurated in the country.
Nzeh urged the Board of Trustees to serve with integrity, transparency and accountability, while ensuring that projects undertaken through the trust reflect the actual needs and priorities of the beneficiary communities.
The Akwa Ibom State Commissioner for Environment and Mineral Resources, Rt. Hon. Nsikak Ekong, also commended Accugas for incorporating its host communities in Akwa Ibom and Cross River into its development agenda.
He charged members of the Board to remain accountable to the communities and ensure that the people are carried along in decisions concerning projects and initiatives.
The Chairman of the Accugas HCDT Board of Trustees, Chief Bassey Itama Abang, meanwhile, stressed that the trust would not operate as a contract-awarding institution.
“Our role is to ensure that the Trust delivers meaningful and sustainable development outcomes for our communities,” Abang said, adding that the Board would work with Accugas, community leaders and other stakeholders to advance projects that reflect community priorities.
The inauguration follows the issuance of the NMDPRA’s midstream HCDT regulations in 2024, which came after a period of consultation over how the host-community provisions of the PIA should apply to midstream operations. The regulations commenced on October 30, 2024 and require eligible licensees to incorporate their trusts within the prescribed period.
The regulatory framework also provides for a development fund into which the operator’s annual contribution is paid. Seventy-five per cent of the collection is allocated to a capital fund for development projects, while 20 per cent goes into a reserve fund and five per cent is allocated to administrative expenses.
For Accugas, the new arrangement builds on an existing record of community-focused projects. Savannah says its social-impact programmes in Nigeria have included education, skills development, water infrastructure, classrooms and economic initiatives.
Among its more recent interventions is the Savannah Energy Education and Internship Training programme, launched in 2023 in partnership with the Inoyo Toro Foundation. The programme provides educational support to young people in Akwa Ibom and Cross River, including university scholarships. In January 2025, Accugas awarded full university scholarships to a second cohort of 50 students from the two states.
The company has also undertaken infrastructure projects in its host communities, including solar-powered water boreholes in Uyo Local Government Area and a six-classroom block in Eket. Its Eastern Pipeline project, meanwhile, traverses communities in Akwa Ibom and Cross River states.
Accugas remains an important part of Savannah’s Nigerian gas business. The company operates a 200 million standard cubic feet per day gas processing facility and approximately 260 kilometres of gas pipeline infrastructure, supplying gas to power and industrial customers. Savannah says its Nigerian gas operations supply approximately 20 per cent of the country’s thermal power generation capacity.
The establishment of the HCDT therefore introduces a more formal and community-driven structure to an area that had previously depended largely on company-led social investment initiatives. It also shifts greater responsibility for identifying and prioritising projects towards the communities themselves. For the new trust to make a lasting difference, however, the test will ultimately go beyond its inauguration. Transparent management of the fund, credible community participation, proper project selection and effective monitoring will determine whether the HCDT becomes a mechanism for sustainable development rather than simply another administrative structure. The emphasis by both NMDPRA and the new Board on accountability and community priorities suggests that these issues will be central to its success.