The House of Representatives Committee on the South-South Development Commission has raised serious concerns about the continued failure to implement crucial environmental provisions of the Petroleum Industry Act (PIA) 2021, warning that Nigeria risks worsening ecological devastation in the Niger Delta region.
Massive Financial Shortfall Exposed
Committee Chairman, Hon. Julius Pondi, revealed during an interactive session with stakeholders at the National Assembly that four years after the PIA came into force, two critical environmental funds remain non-operational. The Abandonment and Decommissioning Fund and the Environmental Remediation Fund were established to hold oil companies accountable for decades of environmental damage but have yet to become functional.
Pondi disclosed alarming financial data showing the extent of the implementation failure. The Abandonment and Decommissioning Fund should have accumulated between ₦850 billion and ₦1.1 trillion, while the Environmental Remediation Fund ought to have gathered ₦420 billion to ₦550 billion if implementation had commenced as legally required in 2021.
Consequences of Regulatory Failure
The lawmaker expressed deep frustration with regulatory agencies, particularly the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Their persistent lack of clarity and progress has raised serious questions about institutional capacity to manage these critical environmental funds.
"These figures represent lost opportunities to restore damaged lands, rehabilitate polluted ecosystems, provide potable water, secure communities, and protect the livelihoods of millions of people whose environments have suffered decades of neglect," Pondi stated emphatically.
The committee noted that the consequences of non-implementation are already visible across the Niger Delta, including:
- Polluted farmlands and contaminated rivers
- Abandoned oil installations posing safety hazards
- Declining fisheries and aquatic life
- Worsening public health conditions in host communities
Parliamentary Intervention and Way Forward
Due to the consistent failure of existing regulators, Pondi revealed that Parliament is considering establishing a new, dedicated agency specifically to administer the environmental funds. The shortcomings of current institutions have prompted serious discussions among national stakeholders about alternative management structures.
The interactive session brought together officials from NUPRC, NMDPRA, NOSDRA, the SSDC, and the Ministries of Petroleum and Environment. The meeting aimed to develop a coordinated and accountable framework for operationalizing the funds, though Pondi lamented the absence of heads of the concerned agencies.
"This Committee is determined to ensure that the intentions of the PIA and the SSDC Act translate into real benefits for the people," Pondi assured, emphasizing the House's commitment to rigorous oversight duties until environmental justice and sustainable development become realities for affected Niger Delta communities.
