The House of Representatives has bemoaned the non-implementation of the Petroleum Industry Act (PIA), 2021 that provided for environmental remediation funds by relevant organisations.
The Chairman, House Committee on South-South Development Commission (SSDC), Rep. 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funds were created under the PIA to make sure oil and gas companies are fully responsible to properly decommissioning outdated facilities and restoring environments degraded by decades of exploration and production activities,” he said.
The News Agency of Nigeria (NAN) 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 by companies.
Pondi said that the law is intended to prevent the ongoing shifting of environmental liabilities to local communities by multi-national firms and to establish a clear, transparent and well-funded system for repairing affected ecosystems.
The SSDC committee chairman regretted that after four years of the enactment of the PIA, there has been non-implementation of these provisions.
“Available data before this committee indicates that, had the provisions been operationalized 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 through provision of potable water, rehabilitating of polluted ecosystems and secure community safety.
He reeled out the consequences of the non-implementation which includes 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.
Pondi, therefore, described the continuous non-implementation as contraventions of both the PIA 2021 and the SSDC Act, 2025.
“Lack of visibility and operational progress on these funds have raised serious concerns regarding the institutional capacity and readiness of the responsible agencies, particularly the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Mid-Stream and Downstream Petroleum Regulatory Authority (NMDPRA).’’
Pondi said that such brazen lack of capacity has informed the ongoing contemplation on the necessity of 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.
Pondi reaffirmed the resolve of the lawmakers in ensuring 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.
