The House of Representatives has bemoaned the non-implementation of the Petroleum Industry Act, 2021, which provided for environmental remediation funds to be allocated by relevant organisations.
The chairman of the House Committee on the South-South Development Commission, Julius Pondi, said this during an interactive session with stakeholders in Abuja.
“As you know, these two essential funds were created under the PIA to make sure oil and gas companies are fully responsible for properly decommissioning outdated facilities and restoring environments degraded by decades of exploration and production activities,” he said.
It was gathered that most companies had not been implementing the Abandonment and Decommissioning Fund and the Environmental Remediation Fund as provided under the Petroleum Industry Act (PIA), 2021.
Mr Pondi said that the law is intended to prevent the ongoing shifting of environmental liabilities to local communities by multinational firms and to establish a clear, transparent and well-funded system for repairing affected ecosystems.
The SSDC committee chairman regretted that, after four years since the enactment of the PIA, these provisions have not been implemented.
He said, “Available data before this committee indicates that, had the provisions been operationalised as required since 2021, the Abandonment and Decommissioning Fund should have accrued an estimated N850 billion to N1.1 trillion since the enactment.
“The Environmental Remediation Fund alone should have accrued no less than N420 billion to N550 billion within the same period.”
Pondi explained that these figures represent lost opportunities to restore damaged lands, protect the livelihoods of millions by providing potable water, rehabilitate polluted ecosystems, and secure community safety.
He outlined the consequences of non-implementation, including polluted farmlands, contaminated rivers, abandoned installations posing safety hazards, and declining fisheries.
According to him, other consequences are health challenges and devastated livelihoods in communities whose resources continue to power our national economy.
Mr Pondi therefore described the continuous non-implementation as a contravention of both the PIA 2021 and the SSDC Act, 2025.
He stated, “Lack of visibility and operational progress on these funds has raised serious concerns regarding the institutional capacity and readiness of the responsible agencies, particularly the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Mid-Stream and Downstream Petroleum Regulatory Authority.’’
Mr Pondi said that such a brazen lack of capacity has informed ongoing deliberations on establishing a new agency and operational structure to administer these funds effectively and transparently.
He said that the session is aimed at creating a platform that fosters constructive dialogue among the NUPRC, NMDPRA, NOSDRA and SSDC.
Mr Pondi reaffirmed the lawmakers’ resolve to ensure that the goals of these legislative instruments translate into tangible outcomes. He expressed confidence that, with sincerity of purpose, these funds can become transformative instruments for environmental justice and sustainable development.
(NAN)