By Fatima Ndagi
The House of Representatives Committee on the South South Development Commission has raised serious concerns over Nigeria’s failure to activate two major funding mechanisms established under the Petroleum Industry Act (PIA), warning that the delay has deprived the Niger Delta of critical resources for environmental remediation.
The Committee disclosed that the lapse has denied the region an estimated ₦1.27 trillion to ₦1.65 trillion earmarked for environmental cleanup and decommissioning of obsolete oil facilities.
Chairman of the Committee, Hon. Julius Gbabojör Pondi, issued the warning during an interactive session at the National Assembly on Tuesday, convened to review the continued non-implementation of the Abandonment and Decommissioning Fund and the Environmental Remediation Fund.
Citing figures submitted to the committee, Pondi noted that the Abandonment and Decommissioning Fund should have accumulated ₦850 billion to ₦1.1 trillion, while the Environmental Remediation Fund ought to have accrued ₦420 billion to ₦550 billion if fully operational since 2021.
He described the delay as “a serious breach of environmental justice and a threat to sustainable development in the Niger Delta.”
According to Pondi, the funds were designed to ensure oil and gas companies take full responsibility for decommissioning outdated assets and restoring degraded environments.
“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,” he said.
The lawmaker also expressed dissatisfaction with the lack of operational clarity from key regulatory bodies—the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)—describing the situation 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.
Tuesday’s session brought together representatives from NUPRC, NMDPRA, the National Oil Spill Detection and Response Agency (NOSDRA), the South South Development Commission, and the supervising Ministries of Petroleum and Environment, as part of efforts to chart a coordinated roadmap for activating the dormant funds.
Pondi reiterated the committee’s resolve to hold institutions accountable, stressing that legislative frameworks must translate into tangible benefits for host communities.
“The National Assembly cannot continue to look away while environmental liabilities multiply and communities suffer. The era of transferring cleanup burdens to impoverished communities must end,” he said.