The House of Representatives on Tuesday decried the prolonged failure of key petroleum regulatory agencies to implement two major funding provisions of the Petroleum Industry Act (PIA), a lapse lawmakers say has cost the Niger Delta an estimated N1.65 trillion earmarked for environmental cleanup and decommissioning of obsolete oil facilities since 2021.
Chairman of the House Committee on South South Development Commission (SSDC), Hon. Julius Pondi, raised the concern during an interactive session with stakeholders in Abuja, where he faulted the non-implementation of the Abandonment and Decommissioning Fund and the Environmental Remediation Fund—both legally mandated under the PIA.
According to data presented before the Committee, the Abandonment and Decommissioning Fund should have accumulated between N850 billion and N1.1 trillion, while the Environmental Remediation Fund should have generated N420 billion to N550 billion if operationalized as required.
Pondi described the delay as a “serious breach of environmental justice” and a direct threat to sustainable development in the oil-producing region.
“These funds were created to prevent the shifting of environmental liabilities to local communities. Yet, four years after the enactment of the PIA, they remain dormant, leaving farmlands polluted, rivers contaminated, fisheries depleted, and communities exposed to health hazards,” he said.
He criticized regulatory agencies—particularly the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)—for what he called a lack of transparency and operational progress, warning that failure to act may necessitate establishing an entirely new agency.
“The repeated failure to provide clarity has prompted discussions on whether a new dedicated body is needed to ensure accountable administration of these funds,” Pondi added.
The session featured representatives from NUPRC, NMDPRA, NOSDRA, the SSDC, and the Ministries of Petroleum and Environment, all tasked with developing a credible framework for activating the funds.
Pondi reaffirmed the committee’s commitment to ensuring that the federal government delivers on the PIA’s promises.
“The National Assembly cannot continue to look away while environmental liabilities multiply and communities suffer. The era of shifting cleanup responsibilities to impoverished communities must end,” he said.
The Committee is expected to continue its engagements until a clear implementation pathway is established.
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