The House of Representatives has launched a probe into Ministries, Departments, and Agencies (MDAs) over the non-implementation of two critical funds under the Petroleum Industry Act (PIA), which has deprived the Niger Delta region of an estimated N1.65 trillion ($1.1 billion) meant for environmental remediation and decommissioning of obsolete oil facilities since 2021.
The investigation, spearheaded by the House Committee on South South Development Commission (SSDC), stems from a hearing on Tuesday where lawmakers expressed “grave concern” over the dormant status of the Abandonment and Decommissioning Fund and the Environmental Remediation Fund. These provisions, enshrined in the PIA enacted four years ago, were designed to ensure oil and gas companies bear the full cost of cleaning up polluted sites and safely retiring outdated infrastructure, preventing the burden from shifting to local communities.
Chairman of the Committee, Hon. (Prince) Julius Pondi (APC, Bayelsa), decried the inaction as a “serious breach of environmental justice and a threat to sustainable development in the Niger Delta.” According to data presented during the session, the Abandonment and Decommissioning Fund should have accrued between N850 billion and N1.1 trillion, while the Environmental Remediation Fund was projected to amass N420 billion to N550 billion if operationalized as required.
“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,” Hon. Pondi stated.
The hearing convened key stakeholders, including representatives from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the National Oil Spill Detection and Response Agency (NOSDRA), the SSDC, and the Ministries of Petroleum Resources and Environment. The session aimed to establish a coordinated framework for activating the funds and addressing regulatory lapses.
Hon. Pondi lambasted the NUPRC and NMDPRA for “institutional incapacity,” citing their failure to provide clarity on operational progress. He warned that the delay exacerbates the region’s ecological crisis, where decades of oil spills have rendered ecosystems uninhabitable and livelihoods unsustainable.
The probe seeks to unravel the reasons behind the funds’ stagnation and enforce accountability, with potential recommendations for legislative amendments or sanctions against non-compliant agencies. Lawmakers emphasized that activating these funds is essential for restoring trust in Nigeria’s oil sector and fulfilling international commitments on environmental stewardship.
Niger Delta advocates hailed the initiative as a long-overdue step toward justice. “This is a wake-up call for the federal government to prioritize the health and future of oil-bearing communities that have borne the brunt of resource extraction for generations,” said a spokesperson for the Host Communities of Nigeria Producing Oil and Gas (HOSTCOM).
As the investigation unfolds, the House vows to ensure no stone is left unturned in recovering the lost trillions and channeling them toward tangible remediation efforts in the oil-rich but battered Niger Delta.
