By Mercy Gadia Adi
The House of Representatives on Tuesday raised strong concerns over the failure of key petroleum regulators to operationalise two major funding mechanisms mandated under the Petroleum Industry Act (PIA), a lapse lawmakers say has deprived the Niger Delta of an estimated N1.65 trillion meant for environmental cleanup and the decommissioning of obsolete oil infrastructure since 2021.
Chairman of the House Committee on South South Development Commission (SSDC), Hon. Julius Pondi, issued the warning during an interactive session with stakeholders in Abuja, where he described the non-implementation of the Abandonment and Decommissioning Fund and the Environmental Remediation Fund as a “grave injustice” to petroleum-producing communities already burdened by decades of pollution.
According to figures presented to the committee, the Abandonment and Decommissioning Fund alone should have accumulated between N850 billion and N1.1 trillion, while the Environmental Remediation Fund ought to have accrued N420 billion to N550 billion, if the regulators had complied with the law since the PIA took effect four years ago.
Hon. Pondi said the inaction not only violates the spirit of the PIA but also perpetuates a pattern of environmental neglect in the 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.
The lawmaker criticised what he described as an unacceptable lack of clarity, transparency, and operational progress from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), warning that continued inefficiency could force the National Assembly to consider establishing a new agency to administer the funds.
“The repeated failure to provide transparency on these funds has prompted discussions on the possible establishment of a new dedicated agency to ensure effective and accountable administration, should existing bodies continue to fall short,” he added.
Tuesday’s session brought together senior representatives of NUPRC, NMDPRA, the National Oil Spill Detection and Response Agency (NOSDRA), the SSDC, and the supervising Ministries of Petroleum and Environment to develop a clear roadmap for activating the stalled funds.
Pondi reaffirmed the committee’s resolve to intensify oversight and ensure that the PIA’s provisions deliver real benefits to host communities long affected by oil exploration.
“The National Assembly cannot continue to look away while environmental liabilities multiply and communities suffer,” he said, stressing that the era where impoverished communities bear the burden of cleanup responsibilities “must end.”