The House of Representatives has raised serious concern over the failure to implement two key Petroleum Industry Act (PIA) funds meant to clean up polluted oil-producing communities and retire obsolete oil infrastructure—funds estimated at N1.65 trillion since 2021.
Chairman of the House Committee on the South South Development Commission (SSDC), Hon. Julius Pondi, stated this in Abuja during an interactive session with key stakeholders. He said the Abandonment and Decommissioning Fund was expected to have accumulated between N850 billion and N1.1 trillion, while the Environmental Remediation Fund should have generated between N420 billion and N550 billion if properly implemented.
Pondi condemned the delay, describing it as a violation of environmental justice and a threat to sustainable development in the Niger Delta. He stressed that the funds were designed to ensure oil companies take full responsibility for dismantling aging facilities and restoring damaged environments.
He lamented that, four years after the PIA became law, the funds remain inactive, leaving communities with polluted farmlands, contaminated rivers, depleted fisheries and rising health risks. He also faulted the regulators—NUPRC and NMDPRA—for failing to provide clarity or progress, suggesting that a new dedicated agency might be needed if current institutions continue to underperform.
The meeting involved NUPRC, NMDPRA, NOSDRA, the SSDC, and officials from the Petroleum and Environment ministries to work towards a unified framework for activating the funds.
Pondi reaffirmed the committee’s resolve to ensure the law delivers real benefits to host communities, declaring that the National Assembly will not ignore worsening environmental damage and insisting that communities must no longer bear cleanup burdens meant for oil companies.
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