Nigeris: Reps probe MDAs over $1.1bln for cleanup of oil-producing communities

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The House of Representatives on Tuesday expressed grave concern over the non-implementation of two critical Petroleum Industry Act (PIA) funds, which have denied the Niger Delta region an estimated sum of N1.65 trillion that should have accrued for cleaning up the polluted environment and decommissioning obsolete oil facilities since 2021.

Chairman, House Committee on South South Development Commission (SSDC), Hon. Julius Pondi, made the observation in Abuja during an interactive session with Stakeholders with a view to examining the continued non-implementation of the Abandonment and Decommissioning Fund and the Environmental Remediation Fund, both mandated under the PIA.

According to data presented before the Committee, the Abandonment and Decommissioning Fund should have accrued between N850 billion and N1.1 trillion, while the Environmental Remediation Fund should have accrued N420 billion to N550 billion if operationalized as required since 2021.

He described the delay as a serious breach of environmental justice and a threat to sustainable development in the Niger Delta.

He said the funds were intended to make oil and gas companies fully accountable for decommissioning outdated infrastructure and rehabilitating degraded ecosystems.

“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 said.

He also criticised the lack of clarity and operational progress from the responsible regulators, particularly the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), describing it as a demonstration of institutional incapacity.

“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 added.

The session brought together representatives from NUPRC, NMDPRA, National Oil Spill Detection and Response Agency (NOSDRA), SSDC and the supervising Ministries of Petroleum and Environment, with the goal of forging a coordinated and credible framework for activating the funds.

Hon. Pondi reaffirmed the committee’s commitment to oversight, insisting that the federal government must ensure that legislative instruments translate into tangible outcomes for host communities.

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

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