SSDC, House Committee Move to Enforce Implementation of Environmental Funds Under Petroleum Industry Act

 

 The South-South Development Commission (SSDC) and the House of Representatives Committee on South-South Development Commission have intensified calls for the full implementation of the Abandonment, Decommissioning, and Environmental Remediation Funds (A&D/ERF) established under the Petroleum Industry Act (PIA) 2021. Both bodies described the initiative as a statutory and moral obligation necessary to reverse decades of environmental degradation in Nigeria’s oil-producing South-South region.

Speaking during an interactive session held at the National Assembly Complex, Abuja, the Managing Director and Chief Executive Officer of the SSDC, Ms. Usoro Akpabio, joined the Committee Chairman, Hon. Julius Pondi, and other key stakeholders to address the persistent non-implementation of the environmental and decommissioning funds mandated by the PIA.

Ms. Akpabio commended the Committee for its proactive oversight and restated the Commission’s readiness to drive coordinated environmental recovery across the region. She lamented that the South-South, which remains the backbone of Nigeria’s oil economy, has continued to suffer the harsh consequences of pollution, ecosystem destruction, and loss of livelihoods despite its vital role in sustaining the nation’s economic growth.

“The operationalization of the Abandonment, Decommissioning, and Environmental Remediation Funds is not just a statutory obligation; it is a moral duty to restore the dignity, health, and livelihoods of the people who have sustained Nigeria’s energy wealth for generations,” Akpabio declared.

She explained that Sections 8(1)(h) and 9(1)(f) of the South-South Development Commission Act, 2025, empower the Commission to design and implement environmental protection and remediation measures, working in collaboration with relevant agencies such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the National Oil Spill Detection and Response Agency (NOSDRA), and the Federal Ministry of Environment. According to her, this legal mandate aligns seamlessly with the provisions of the PIA, making it imperative for the SSDC to be formally integrated into the implementation framework of the environmental funds.

Despite clear provisions in Sections 232–242 and 103–104 of the PIA mandating oil companies to set aside funds for decommissioning and cleanup, Akpabio noted with concern that there has been no public record of operational escrow accounts, deposits, or disbursements since the law came into force. She attributed the failure to institutional fragmentation, weak inter-agency coordination, and the exclusion of the SSDC from the fund management process, despite its statutory role and proximity to affected communities.

The SSDC Managing Director highlighted the consequences of the continued delay, citing more than 2,000 identified oil spill sites, the destruction of mangrove forests, and the collapse of traditional livelihoods such as fishing and farming. She described the situation as a direct contradiction of the Renewed Hope Agenda of the Federal Government and Nigeria’s Energy Transition Plan (ETP 2060).

To close the existing gaps, Akpabio proposed the creation of a tripartite framework involving the NUPRC, NMDPRA, and SSDC to establish a “South-South Window” within the A&D and ERF structures. The framework, she suggested, should be formalized through a Memorandum of Understanding within 90 days to enable coordinated project execution, transparent fund deployment, and alignment of remediation initiatives with local development needs.

She further recommended that the Central Bank of Nigeria create ring-fenced escrow sub-accounts for oil assets located in the South-South region and called for the establishment of a Public Environmental Accountability Dashboard to promote transparency and real-time reporting. Akpabio also advocated integrating remediation financing with Green Bonds, ESG-linked investments, and partnerships with international development institutions such as the United Nations Environment Programme (UNEP), the United Nations Development Programme (UNDP), the World Bank, and the African Development Bank (AfDB).

Akpabio emphasized that effective environmental recovery in the Niger Delta should be viewed within the framework of global sustainability goals, particularly the United Nations Sustainable Development Goals (SDGs 6, 13, 14, and 15). She therefore urged the Federal Government to lead an International Donor Compact to support long-term environmental rehabilitation efforts across the South-South.

“The South-South Development Commission stands ready to work with all relevant agencies, the National Assembly, and international partners to ensure that the next chapter of Nigeria’s petroleum story is written in restoration, inclusion, and renewal — not in neglect,” she concluded.

The session ended with a renewed commitment from the House Committee to collaborate closely with the SSDC in driving the enforcement of the PIA’s environmental provisions, signaling a new phase in the long struggle to achieve ecological justice and sustainable development in Nigeria’s oil-bearing region.