Their opposition came during a public hearing organised by the House of Representatives Committee on Petroleum Resources (Upstream), where key government officials, including the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, and NUPRC Chief Executive, Gbenga Komolafe, strongly criticised the proposed legislation.
According to a statement issued by NUPRC’s Head of Corporate Communications, Eniola Akinkuotu, the commission maintained that the Petroleum Industry Act (PIA) 2021 already provides clear provisions on decommissioning and abandonment matters, rendering the creation of a new agency unnecessary and potentially disruptive.
The proposed bill seeks to create a dedicated commission to oversee dismantling, removal, and site restoration of oil and gas installations at the end of their productive life cycles. Proponents argue that such a body would improve environmental safety and reduce ecological risks in the Niger Delta.
However, Lokpobiri and Komolafe contended that the PIA already provides a comprehensive legal and institutional framework to handle such processes. They warned that setting up a new body could lead to regulatory overlap, confusion, and discourage investors.
Lokpobiri said creating a new commission would not resolve community issues since such matters are already addressed through the Host Community Development Trust Fund, which has generated nearly ₦400 billion for local projects.
He also cautioned lawmakers that altering the existing framework could destabilise investor confidence. “Creating a commission for decommissioning and abandonment will duplicate responsibilities already vested in the NUPRC under Sections 232 and 233 of the PIA 2021,” he stated.
On his part, Komolafe explained that in global practice, decommissioning oversight rests with the upstream regulator. He emphasised that separating it would distort the Field Development Plan (FDP) process and undermine Nigeria’s regulatory consistency.
The NNPC’s Executive Vice-President, Upstream, Udobong Ntia, also opposed the bill, noting that decommissioning is not a frequent activity. “What will such a commission be doing when NNPC, for instance, has no decommissioning and abandonment until 2045?” he queried.
The Chairman of the House Committee on Petroleum Resources (Upstream), Hon. Alhassan Ado Doguwa, who chaired the session, said the bill was aimed at addressing environmental challenges in oil-producing communities. The committee is expected to review submissions from all stakeholders before making final recommendations to the National Assembly.
