JONAS EZIEKE, Abuja
Key stakeholders in Nigeria’s oil and gas industry have raised concerns over a proposal to establish a new regulatory agency solely dedicated to the decommissioning and abandonment of oil production facilities, insisting that existing structures are already adequately equipped for the task.
During an interactive meeting with lawmakers and players in the sector, representatives of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and other stakeholders argued that the creation of a new commission would amount to duplication of responsibilities and unnecessary bureaucracy.
The meeting, presided over by Hon.Alhassan Ado Doguwa, brought together key stakeholders, including officials from the Ministry of Petroleum Resources (MPR), the Ministry of Environment (FME), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the National Oil Spill Detection and Response Agency (NOSDRA), and the National Environmental Standards and Regulations Enforcement Agency (NESREA).
In his opening speech, Doguwa underscored the significance of the proposed commission, describing the NC-DOGI Bill as a “landmark legislative proposal aimed at establishing a dedicated commission to coordinate all decommissioning efforts in Nigeria’s oil and gas sector.”
“This Bill is not just another legislative initiative—it is a leadership Bill,” he said.
“It is designed to ensure Nigeria meets globally accepted standards of decommissioning, while protecting host communities and the environment from the harmful effects of improper facility abandonment.”
Despite the lawmaker’s optimistic framing, the proposal faced strong opposition from industry regulators and stakeholders, who insisted that Nigeria already has an effective framework under the Petroleum Industry Act (PIA) and other regulatory instruments to handle decommissioning and abandonment.
The Director of Production and Development of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Mark Emmanuel in his submission argued that the obligations for decommissioning are embedded in current licensing frameworks and are strictly enforced under the supervision of the commission.
“The PIA under Sections 232 and 3 already makes elaborate arrangements for decommissioning and abandonment,” he said. “It is the legal obligation of the licensee or lessee to fund, plan, and carry out decommissioning at the end of an oil field’s life cycle.
The funds set aside for this purpose are not government revenue but are controlled by the operators under the NUPRC’s supervision.”
He further warned that setting up a new agency would be premature and wasteful, noting that most oil fields in Nigeria are still productive and far from their decommissioning phase.
“If you create a stand-alone commission now, it will be idle for the foreseeable future.
Unlike the North Sea, where decommissioning is active, Nigeria is still in a growth phase. More investments are being made to expand production, not shut it down,” he added.
The Director, Environmental Assessment Department, Ministry of Environment Mrs Rofikat Odetoro, echoed the sentiments, warning against creating redundant structures.
“This is already embedded in the Environmental Impact Assessments (EIA) and current regulations.
Instead of creating a new agency, let’s empower NOSDRA and the relevant existing institutions,” she said.
As discussions endured, emphasis was placed on the need to differentiate between what exists on paper and the realities on the ground, particularly in the Niger Delta, where host communities have long suffered the consequences of environmental degradation from abandoned oil infrastructure.
Hon. Doguwa concluded the meeting by reaffirming the committee’s commitment to inclusive and informed decision-making.
“We will collect all documentary submissions and review every perspective. If these agencies do not return for further dialogue, we will go to the field and meet them there. Your guidance is crucial as we shape this legislative framework,” he said.
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