The Petroleum Ministry, NUPRC, and NNPC have opposed the 2024 bill to establish a new oil and gas decommissioning commission, citing duplication of PIA roles
Petroleum Ministry opposes decommissioning bill as it joins forces with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPC) to reject the proposed legislation seeking to establish the National Commission for the Decommissioning of Oil and Gas Installations, 2024.
Also read: NUPRC reveals unclaimed crude cargoes despite shortages
The three key industry regulators, during a House of Representatives public hearing, argued that the proposed commission would duplicate existing responsibilities already covered under the Petroleum Industry Act (PIA) 2021 and could undermine investor confidence.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, warned that the bill was unnecessary and counterproductive, insisting that current structures already cater to decommissioning and abandonment.
“Creating a commission for decommissioning and abandonment would not address any community issues, as this is already handled by the Host Community Development Trust Fund, which has generated nearly N400bn for community development,” he said.
Lokpobiri stressed that the PIA, through Sections 232 and 233, already empowers the NUPRC to handle decommissioning, noting that introducing another agency could create regulatory conflict and discourage foreign investment.
Echoing this stance, NUPRC Chief Executive Gbenga Komolafe stated that the proposal deviated from global best practices. He explained that in other jurisdictions, decommissioning and abandonment fall squarely within the remit of the upstream regulator.
“This bill risks fragmenting oversight of field development plans. Decommissioning is not a stand-alone function — separating it would weaken the regulatory process,” Komolafe said.
Komolafe further noted that Nigeria’s oil sector suffered a 75 per cent investment decline between 2014 and 2021 due to unstable legal frameworks, warning that altering the PIA could send “the wrong signals” to investors.
Supporting the position, NNPC Executive Vice-President (Upstream), Udobong Ntia, questioned the need for a new agency, noting that decommissioning and abandonment activities are infrequent and typically occur toward the end of field lifespans.
“What will such a commission be doing when NNPC has no decommissioning and abandonment plans until 2045?” he asked.
Meanwhile, House Committee Chairman Alhassan Ado Doguwa defended the intent behind the bill, saying it aimed to address environmental challenges in oil-producing communities.
The House Committee on Petroleum Resources (Upstream) is expected to review all submissions before presenting its recommendations to the National Assembly.
Also read: SERAP demands NNPCL account for missing oil funds
The rejection by the Petroleum Ministry and key industry regulators underscores growing tensions between the legislative and executive arms over Nigeria’s energy governance framework, as stakeholders push for clarity, efficiency, and investor-friendly policies in the oil and gas sector.
Quadri Olaitan is a journalist and contributor to Freelanews.com, covering news, public affairs, and human-interest stories.
