The House of Representatives has sounded the alarm over what it describes as “worrisome” non-compliance with the Petroleum Industry Act (PIA) and other laws by Nigeria’s oil regulators.
The warning came on Monday from the Ad-hoc Committee on Decommissioning and Abandonment in the oil sector, following submissions by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) during resumed hearings in Abuja.
NUPRC was represented by Executive Commissioner Enorense Amadasu, while Dr. Mustafa Lamorde spoke for NMDPRA.
The committee, chaired by Bassey Ekpenyong, was constituted by the 10th House under Tajudeen Abbas to scrutinize compliance with decommissioning and abandonment (D&A) obligations under the PIA.
The investigation comes amid growing concerns over a $20 billion funding gap, environmental hazards, and fiscal risks linked to ageing oil infrastructure.
The committee is reviewing operators’ D&A plans, financial provisions, and regulators’ enforcement of the law to protect communities and the environment.
Representatives of the two agencies highlighted challenges in implementing D&A regulations, citing legal technicalities, Central Bank responsibilities, and issues with escrow accounts.
NUPRC emphasized that it had enforced Sections 232 and 233 of the PIA and engaged extensively with industry operators to ensure environmental restoration at the end of asset life cycles.
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Chairman Ekpenyong, however, lamented delays in implementation, noting that some regulations date back to 2003 and raised questions about enforcement by the Ministry of Justice.
For decades, operators have left wells, pipelines, and related infrastructure idle without proper dismantling, causing environmental degradation, community disputes, and revenue losses.
The PIA was enacted in 2021 to address these gaps by mandating funded decommissioning plans, escrow arrangements, periodic reporting, and strict oversight.
Despite these reforms, the $20 billion decommissioning liability remains unresolved, prompting the House committee to probe whether operators and regulators are fulfilling their statutory obligations and how loopholes can be closed to prevent environmental and financial risks.