The House of Representatives Committee on South South Development Commission has accused the Federal Government of depriving the Niger Delta region of an estimated ₦1.65 trillion by failing to activate two key funding mechanisms mandated under the Petroleum Industry Act (PIA).
Speaking during an interactive session in Abuja on Tuesday, the Committee Chairman, Hon. Julius Pondi, said the non-implementation of the Abandonment and Decommissioning Fund and the Environmental Remediation Fund—both provided for in the PIA—has stalled critical cleanup, restoration, and decommissioning projects across the oil-producing region.
According to data presented before the committee, the Abandonment and Decommissioning Fund should have accrued ₦850bn to ₦1.1tn, while the Environmental Remediation Fund should have accumulated ₦420bn to ₦550bn since the Act came into force in 2021.
Pondi described the delay as a major violation of environmental justice.
“These funds were created to ensure that oil companies do not pass their environmental liabilities to local communities. Four years after the PIA was signed, the funds remain dormant—leaving farmlands polluted, rivers contaminated, and entire communities exposed to dangerous health conditions,” he said.
He faulted the slow response and lack of clarity from regulatory bodies, particularly the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), saying their silence raises concerns about institutional inefficiency.
“The persistent lack of transparency has led to discussions about creating a new specialised agency to manage these statutory funds if current regulators continue to fall short,” he added.
Officials from NUPRC, NMDPRA, the National Oil Spill Detection and Response Agency (NOSDRA), and the Ministries of Petroleum and Environment attended the session.
Since the signing of the PIA in 2021, the House has repeatedly emphasised the importance of the statutory funds as tools to reverse decades of environmental damage in the Niger Delta. Lawmakers argue that without firm implementation, ongoing pollution, abandoned facilities, and deteriorating health conditions will continue to devastate host communities.
Pondi vowed that the committee will intensify its oversight efforts, stressing that the Federal Government must demonstrate the political will to enforce the law.
“The National Assembly cannot stand idle while environmental liabilities accumulate and communities continue to suffer,” he said.
