The federal government and stakeholders in Nigeria’s oil and gas industry have raised concerns over a proposed legislation to establish a new regulatory agency solely dedicated to the decommissioning and abandonment of oil infrastructure, arguing that existing structures are already adequately equipped for the task.
During an interactive session with members of the House of Representatives and key 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.
In his opening remarks, Alhassan Doguwa, Chairman of the House Committee on Petroleum Resources (Upstream), underscored the significance of the proposed commission, describing the decommissioning Bill which has scaled second reading at the lower chamber as a “landmark legislative proposal aimed at establishing a dedicated commission to coordinate all decommissioning efforts in Nigeria’s oil and gas sector.”
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“This Bill is not just another legislative initiative—it is a leadership Bill. 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”, he said
Despite the Chairman’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.
Mark Emmanuel, director of Production and Development of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), 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 explained.
“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 added.
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 standalone 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 further said.
Rofikat Odetoro, director, environmental assessment department, Ministry of Environment also warned 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.
