Delay In PIA Intervention Funds Implementation Hampering Environmental Clean-Up In N/Delta-Reps

By Alkassim Bala Tsakuwa, Abuja

The House of Representatives Committee on South South Development Commission has said that, the delay in the implementation of the Abandonment and Decommissioning Fund and the Environmental Remediation Fund mandated in the Petroleum Industry Act (PIA), has denied the Niger Delta the needed funds to clean up polluted environments and decommissioning of obsolete oil facilities since 2021.

Chairman of the committee, Hon. Julius Gbabojor Pondi said this during an interactive session with regulatory agencies at the National Assembly on Tuesday.

The session was attended by NUPRC, NMDPRA, the National Oil Spill Detection and Response Agency (NOSDRA), SSDC, and the supervising Ministries of Petroleum and Environment.

The meeting was aimed at having a coordinated and credible framework for the activation of the funds which has accumulated overtime and is not being utilize for the purpose it was created.

According to Hon. Pondi, the funds have an estimated ₦1.27 trillion to ₦1.65 trillion accrued in for the implementation of the Abandonment and Decommissioning Fund and the Environmental Remediation Fund.

He informed that, data presented available before the committee has shown that, the Abandonment and Decommissioning Fund should have accrued between ₦850 billion and ₦1.1 trillion, while the Environmental Remediation Fund should have accrued ₦420 billion to ₦550 billion if it was operationalized since the 2021 as required.

Hon. Pondi said, the delay was a serious breach of environmental justice and a threat to sustainable development in the Niger Delta because the funds were intended to make oil and gas companies fully accountable for decommissioning outdated infrastructure and rehabilitating degraded ecosystems.

He said, “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”.

The lawmaker lamented the lack of clarity and operational progress from the regulators responsible for the implementation particularly the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The Committee Chairman added, “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 however reaffirmed the committee’s commitment to oversight, insisting that the federal government must ensure that legislative instruments translate into tangible outcomes for host communities.

He said, “The National Assembly cannot continue to look away while environmental liabilities multiply and communities suffer”.

He warned that the era of shifting cleanup responsibilities to impoverished communities must end.