The House of Representatives Committee on the South-South Development Commission has stated that Nigeria’s failure to operationalise two critical Petroleum Industry Act (PIA) funds has deprived the Niger Delta of an estimated ₦1.27 trillion to ₦1.65 trillion, which should have been available for environmental clean-up and the decommissioning of obsolete oil facilities since 2021.
The Chairman of the committee, Mr Julius Gbabojör Pondi, made this known during an interactive session on Tuesday at the National Assembly, convened to examine the continued non-implementation of the Abandonment and Decommissioning Fund and the Environmental Remediation Fund, both mandated under the PIA.
According to data presented before the committee, the Abandonment and Decommissioning Fund ought to have accrued between ₦850 billion and ₦1.1 trillion, while the Environmental Remediation Fund should have accrued between ₦420 billion and ₦550 billion had they been operationalised as required since 2021.
Mr Pondi described the delay as a grave breach of environmental justice and a threat to sustainable development in the Niger Delta. He explained that the funds were designed to ensure oil and gas companies are held fully accountable for dismantling outdated infrastructure and rehabilitating degraded ecosystems.
“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,” Pondi said.
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He further criticised the lack of clarity and progress from the responsible regulators, particularly the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), describing their inaction as evidence of institutional incapacity.
“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.
The session brought together representatives from NUPRC, NMDPRA, the National Oil Spill Detection and Response Agency (NOSDRA), SSDC, and the supervising Ministries of Petroleum and Environment, with the aim of developing a coordinated and credible framework for activating the funds.
The Chairman reaffirmed the committee’s commitment to oversight, stressing that the federal government must ensure legislative instruments deliver tangible benefits for host communities.
“The National Assembly cannot continue to look away while environmental liabilities multiply and communities suffer,” he said.
He emphasised that the era of shifting clean-up responsibilities onto impoverished communities must come to an end.