By Chukwudi Obasi, Abuja
The House of Representatives has called for the establishment of an Environmental Restoration Fund, to be financed by International Oil Companies (IOCs), to address the extensive environmental damages in the Niger Delta, estimated at $100bn by the United Nations Environment Programme (UNEP) and the Bayelsa State Oil and Environment Commission (BSOEC).
The proposed fund will also introduce community profit-sharing mechanisms to ensure that host communities benefit directly from oil and gas revenues.
Adopting a motion of urgent public importance sponsored by the Minority Leader of the House, Hon. Kingsley Chinda, lawmakers urged the federal government to halt Shell, TotalEnergies, and other IOCs’ divestment processes until they fully address their historical environmental and social liabilities.
The House emphasized that no divestment should proceed without transparent consultations with Niger Delta communities and state governments.
The House further directed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce compliance with the Petroleum Industry Act (PIA) by rejecting divestment applications that fail to meet the highest standards of corporate accountability.
It also called for a detailed assessment of new operators’ financial, technical, and environmental capacities before granting approvals.
Chinda highlighted that the PIA mandates the NUPRC to regulate the upstream petroleum sector in alignment with national interests and global best practices.
He pointed to independent assessments by UNEP and BSOEC, which have documented severe environmental and health impacts of oil exploration in the Niger Delta, including contaminated water sources, soil infertility, biodiversity loss, and widespread public health crises.
Chinda recalled that the NUPRC recently rejected Shell’s divestment application, citing unresolved environmental liabilities and concerns about the Renaissance Consortium’s capacity to manage the assets effectively.
He noted that past divestments—such as Shell’s sale of assets in Nembe to Aiteo, ExxonMobil’s transfers, and ENI/AGIP’s sales to Oando—had left communities grappling with unaddressed pollution, worsening environmental degradation, and rising social unrest.
He stressed that the Nigerian government must protect the rights and welfare of Niger Delta residents, who have endured decades of environmental devastation caused by oil extraction.
He warned that Approving Shell’s or TotalEnergies’ divestment requests without addressing these liabilities would undermine Nigeria’s regulatory independence, shift corporate responsibilities to the Nigerian state, and set a dangerous precedent for environmental impunity.
Chinda cautioned that allowing IOCs to divest without accountability would jeopardize the future of the Niger Delta, weaken Nigeria’s sovereignty, and saddle the country with the economic and environmental costs of clean-up.
He insisted that a transparent review process, including full disclosure of environmental liabilities and enforceable commitments for clean-up and reparations, must be a prerequisite for any IOC divestment approval.
He further warned that failing to safeguard regulatory independence and uphold the rule of law against corporate and political interference would threaten national sovereignty and erode public trust in the government.
