Gas Flare Funds: Court adjourns against NUPRC for judgment

By Osaro Michael, Benin

The Federal High Court, sitting in Yenagoa, Bayelsa State presided over by Justice N. Ayo-Emmanuel has adjourned for judgment, a suit seeking for accountability and to compel the Federal Government through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to utilised funds collected as gas flare penalty for the execution of environmental remediation projects in the oil producing communities of the Niger Delta region in line with section 104 of the Petroleum Industry Act, 2021.

The plaintiffs, an Environmental Non-Governmental Organization, Difix Ecosystem Conservation and Restoration Network led by Comrade Franklin Magada and two others through their Counsel, Eric Omare, Esq filed Suit No. FHC/YNG/CS/69/2025 against the Nigerian Upstream Regulatory Commission and Attorney-General of the Federation seeking for among other reliefs:

“A DECLARATION that by section 104 (4) of the Petroleum Industry Act, 2021, the 1st Defendant is under a legal duty to expend the money received as gas flaring penalties from oil and gas exploration companies for environmental remediation projects and programmes and relief of the Host Communities where the oil and gas exploration are taking place in respect of which the gas flaring penalties are paid.

“AN ORDER of this Honourable Court compelling the Defendants to give account of money received as gas flaring penalties and projects/programmes executed by the 1st Defendant for the environmental remediation and relief of the oil and gas host communities of the Niger Delta region of Nigeria from August 2021 till date.

“AN ORDER of this Honourable Court compelling the Defendants to utilise money received as gas flaring penalties from August 2021 till date or any other period on environmental remediation projects and programmes and relief of the Communities’ hosting gas flaring facilities.

“When the matter came for hearing on Wednesday, the 18th of June, 2025, Counsel to the Plaintiffs, Eric Omare, Esq, argued the Plaintiffs originating summons and asked the Court to grant the reliefs sought. Omare argued that, the provisions of section 104 (4) of the PIA is clear to the effect that, money paid by oil companies as gas flare penalties ought to be used for the execution of environmental remediation projects in the oil producing communities.

“However, that the provision is being breached by the Federal Government, hence this suit to ensure compliance.
The NUPRC through its Counsel, Olasoji O. Olowolafe, SAN challenged the locus standi of the Plaintiffs and asked the court to decline jurisdiction and in the alternative dismiss the case. The Attorney General of the Federation, sued as 2nd Defendant did not file any process in opposition.

However, the case was adjourned to 14th July, 2025 for judgment.