Failure To Implement PIA Funds Denied Niger Delta N1.65tr For Clean-up

The House of Representatives Committee on South South Development Commission says Nigeria’s failure to implement two critical Petroleum Industry Act, PIA, funds has denied the Niger Delta an estimated ₦1.27 trillion to ₦1.65 trillion that should have accrued for cleaning up polluted environments and decommissioning obsolete oil facilities since 2021.

Chairman of the committee, Julius Pondi, said this during an interactive session at the National Assembly to examine the continued non-implementation of the Abandonment and Decommissioning Fund and the Environmental Remediation Fund, both mandated under the PIA.

He noted that, according to data presented before the committee, 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 operationalized as required since the 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He said the funds were intended to make oil and gas companies fully accountable for decommissioning outdated infrastructure and rehabilitating degraded ecosystems.

Pondi also criticized 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.

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.

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

The session brought together representatives from NUPRC, NMDPRA, the 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.

Oduyemi Odumade, Edited By Grace Namiji