Nigeria’s oil and gas industry is expected to come under closer scrutiny over its relationship with host communities next year, as the inaugural Host Community Summit, HostComm, is scheduled to take place in Lagos on August 9 and 10, 2027.
The summit is being organised by Caritas Communications Limited, Africa Oil+Gas Report (AOGR) and Pedestal Africa. According to the organisers, the event is intended to bring together operators, regulators, host community representatives, financial institutions and other stakeholders to discuss some of the practical challenges affecting the implementation of host community development initiatives in the oil and gas sector.
The organisers have chosen “Building Trust, Creating Shared Value and Sustaining Development” as the theme for the summit.
According to the organizing committee, the summit will focus on what they described as the gap between regulatory requirements and what happens on the ground in oil producing communities. Areas expected to come under discussion include community relations, conflict management, governance, financing of development projects and the implementation of the Host Communities Development Trusts established under the Petroleum Industry Act, PIA, 2021.
The HCDT framework requires oil and gas companies to contribute three per cent of their annual operating expenditure to the development of their host communities. Since the introduction of the PIA, the operation of the trusts and the effectiveness of the funds in delivering tangible benefits to communities have remained important issues in the sector.
The organisers said HostComm will provide an opportunity for stakeholders to examine how the framework is working in practice and what may be required to improve its outcomes.
They also expect discussions to cover the role of operators in developing effective relationships with communities and the extent to which host community development can contribute to reducing operational and investment risks in the sector.
Another area of focus will be financing. The organisers said financial institutions, development finance institutions, private equity interests and ESG professionals will be invited to explore possible funding models for community infrastructure and other development projects.
The summit is also expected to bring together government and regulatory officials, oil and gas companies, traditional institutions, host community leaders and trustees. Legal practitioners, energy consultants, engineering and procurement companies and oilfield service providers are also among the groups the organisers are targeting.
According to the organisers, the discussions will extend to local content and the participation of businesses from host communities in the wider oil and gas supply chain.
The proposed summit comes at a time when the industry is dealing with the practical implications of the PIA, including the need to establish functional relationships between petroleum operators and the communities around their assets.
While the HCDT provisions provide a formal framework for community development, their implementation has raised questions about governance, accountability, project selection, community participation and the long-term impact of investments made through the trusts.
The organisers said these issues will form part of the conversation at HostComm, with the aim of moving the discussion from compliance with the law to the actual development outcomes being achieved in host communities.
The August 2027 event will be held in Lagos, although the organisers are yet to announce the venue. Further details on speakers, the programme and participation are expected to be released ahead of the summit.
