Niger Delta Denied N1.65 Trillion in Critical Environmental Funds
The House of Representatives Committee on South South Development Commission has raised serious concerns about Nigeria's failure to implement two crucial Petroleum Industry Act funds, revealing that the Niger Delta region has been denied approximately N1.65 trillion earmarked for environmental restoration since 2021.
Massive Financial Shortfall Exposed
Committee Chairman Hon. Julius Gbabojör Pondi disclosed these alarming findings during an interactive session at the National Assembly on Tuesday. The session focused on the continued dormancy of the Abandonment and Decommissioning Fund and the Environmental Remediation Fund, both mandated under the Petroleum Industry Act.
According to data presented to the committee, the financial impact has been substantial. The Abandonment and Decommissioning Fund should have accumulated between N850 billion and N1.1 trillion, while the Environmental Remediation Fund was projected to reach between N420 billion and N550 billion if properly operationalized since the PIA's enactment.
The meeting brought together key stakeholders including representatives from the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the National Oil Spill Detection and Response Agency, and the supervising Ministries of Petroleum and Environment.
Environmental Justice Under Threat
Hon. Pondi described the four-year delay in activating these funds as a serious breach of environmental justice and a direct threat to sustainable development in the oil-rich Niger Delta region. He emphasized that these funds were specifically designed to hold oil and gas companies fully accountable for decommissioning outdated infrastructure and rehabilitating degraded ecosystems.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 stated during the session.
The lawmaker expressed strong criticism toward the lack of transparency and operational progress from regulatory bodies, characterizing it as a demonstration of institutional incapacity. He issued a stern warning that continued failures could prompt the creation of a new dedicated agency to ensure proper administration of the funds.
Legislative Commitment to Oversight
Pondi reaffirmed the committee's commitment to rigorous oversight, insisting that legislative instruments must deliver tangible benefits to host communities affected by oil exploration activities.
"The National Assembly cannot continue to look away while environmental liabilities multiply and communities suffer. The era of shifting cleanup responsibilities to impoverished communities must end," he declared.
The committee's investigation aims to establish a coordinated framework to activate the dormant funds and ensure they serve their intended purpose of environmental restoration and community development in the Niger Delta region.
