The House of Representatives has urged the Federal Government of Nigeria to immediately halt all divestment processes by Shell, TotalEnergies, and other International Oil Companies in the Niger Delta, until their historical, environmental and social liabilities are addressed.
They also urged the government to ensure that no divestment proceeds is done without transparent consultations with the Niger Delta communities and the state governments.
The House also mandated the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), to enforce compliance with the Petroleum Industry Act and reject divestment applications that fail to meet the highest standards of corporate accountability.
They also mandated NUPRC to conduct detailed assessments of new operators’ financial, technical, and environmental capacities before granting approval.
The resolutions followed the adoption of a Matter Of Urgent Public Importance on ‘The Urgent Need To Protect Environmental Integrity, Community Welfare, And Regulatory Independence In The Niger Delta By Halting Divestments Of International Oil Companies (IOCs)’, moved by Mr Kingsley Chinda.
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Leading the debate on the motion, Mr. Chinda said that past divestments by IOCs, have left communities with unresolved pollution, worsened environmental degradation and increased social unrest.
“The House notes that the Nigerian Petroleum Industry Act (PIA) vests the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) with the responsibility to regulate the upstream petroleum sector in line with national interest and global best practices;
“Also notes that independent assessments, including those by the United Nations Environment Programme (UNEP) and the Bayelsa State Oil and Environment Commission (BSOEC), have documented the catastrophic environmental and health impacts of oil exploration in the Niger Delta, including contaminated water sources, soil infertility, loss of biodiversity, and public health emergencies;
“Aware that recently, the NUPRC has rejected Shell’s divestment application, citing failure to address environmental liabilities and concerns about the capacity of the Renaissance Consortium to manage the assets effectively;
“Also aware that past divestments by IOCs, such as Shell’s sale of assets in Nembe to Aiteo, ExxonMobil’s transfers, and ENI/AGIP’s sales to Oando, have left communities with unresolved pollution, worsened environmental degradation, and increased social unrest;
“Further notes that the Nigerian Government has a duty to protect the rights and welfare of its citizens, particularly those in the Niger Delta, who have borne the brunt of environmental and social harm from oil extraction” Mr. Chinda said.
He also said that the House was concerned that approving Shell’s or TotalEnergies’ divestment requests without addressing these historical and ongoing liabilities risks undermining Nigeria’s regulatory independence, transferring corporate responsibilities to the Nigerian state, and signaling impunity for environmental crimes.
“Also concerned that allowing IOCs to divest without accountability would jeopardize the future of the Niger Delta, undermine Nigeria’s sovereignty, and burden the Nigerian people with the economic and environmental costs of cleanup;
“Believes that a comprehensive and transparent review process, including full disclosure of environmental liabilities and enforceable commitments for cleanup and reparations, must precede any approval of IOC divestments,
“Worried that if regulatory independence is not safeguarded to uphold the rule of law and protect national interests against undue corporate and political interference, the sovereignty of the country will be threatened and citizens’ trust in the government would further diminish” he said.
The House thereafter directed the House Committees on Host Communities, Environment, Petroleum Resources (Upstream) and Legislative Compliance to ensure compliance with the resolutions and report back to the House within four (4) weeks for legislative action.
Emmanuel Ukoh
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