By Christiana Ekpa
The House of Representatives has ordered an investigation into widespread non-compliance with decommissioning and abandonment (D&A) regulations in Nigeria’s petroleum industry, amid fears of a looming $20 billion environmental and financial crisis.
The motion of urgent public importance, sponsored by Rt. Hon. Zakaria Dauda Nyampa (Madagali/Michika Federal Constituency, Adamawa State), and Chairman, House Committee on Political Parties Matters, called for an immediate probe into how oil operators are complying with the Petroleum Industry Act (PIA) 2021 provisions on asset decommissioning and remediation.
Hon. Nyampa expressed concern that many operators—particularly international oil companies that divested from the Niger Delta—failed to make adequate financial provisions for decommissioning, leaving host communities and the Nigerian government exposed to severe environmental and fiscal risks.
He noted that while global standards require operators to set aside funds for dismantling and site restoration, less than 20 percent of Nigeria’s operators have funded their D&A escrow accounts, despite liabilities estimated between $15 and $20 billion.
The House therefore resolved to set up an Ad-hoc Committee to investigate the level of compliance with D&A obligations across the upstream, midstream, and downstream sectors and report back within twelve weeks for further legislative action.
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