The House of Representatives, on Thursday, directed the immediate stoppage of all divestments processes by International Oil Companies (IOCs), including Shell and TotalEnergies, in Niger Delta in a bid to safeguard the environmental integrity, community welfare, and regulatory independence of Nigeria.

The House also called for transparent consultations with Niger Delta communities and state governments before any divestment is approved.

The resolution followed the adoption of a motion of urgent public importance moved by the House Minority Leader, Hon. Kingsley Chinda, (PDP- Rivers)

While moving the motion, Hon. Chinda raised concerns over the historical and ongoing environmental degradation caused by oil exploration in the region. He warned that approving divestments without addressing existing liabilities would have dire consequences for Nigeria’s sovereignty and the well-being of host communities.

He noted that the Petroleum Industry Act (PIA) vests the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) with the responsibility to regulate the upstream petroleum sector in line with national interests and global best practices.

According to him, “Independent assessments, including those by the United Nations Environment Programme (UNEP) and the Bayelsa State Oil and Environment Commission, have documented the catastrophic environmental and health impacts of oil exploration in the Niger Delta. These include contaminated water sources, soil infertility, loss of biodiversity, and public health emergencies.

“The House observed that the NUPRC recently rejected Shell’s divestment application, citing the company’s failure to address environmental liabilities and concerns over the capacity of the Renaissance Consortium to effectively manage the assets.

Hon Chinda highlighted previous divestments by IOCs, such as Shell’s sale of assets in Nembe to Aleppo, ExxonMobil’s asset transfer, and Eni’s sale to Rwanda, which left communities grappling with unresolved pollution, worsened environmental degradation, and heightened social unrest.

While emphasizing the government’s duty to protect its citizens, particularly those in the Niger Delta who have borne the brunt of environmental and social harm, the Lawmaker warned that allowing IOCs to divest without accountability could jeopardize the region’s future and saddle Nigeria with the economic and environmental costs of cleanup.

According to him, “a major highlight of the resolution was the call for the establishment of an Environmental Restoration Fund financed by the IOCs to comprehensively address the estimated $100 billion in damages identified by UNEP and the Bayelsa State Commission. Lawmakers also pushed for the introduction of a community profit-sharing mechanism to ensure host communities benefit directly from oil and gas revenues.

” To ensure effective implementation, the House directed the Committees on Host Communities, Environment, Petroleum Resources (Upstream), and Legislative Compliance to oversee the process and report back within four weeks for further legislative action.

In his Contribution to the motion, Hon. Alhassan Ado Doguwa acknowledged the government’s existing efforts to address environmental and social concerns through relevant agencies. However, he emphasized that additional legislative initiatives would further strengthen regulatory oversight and improve conditions in the Niger Delta.

According to him “This motion will not only help us address the challenges affecting our people, but it will also provide an opportunity to review the existing legal framework to ensure permanent statutory provisions that were overlooked during the enactment of the PIA,” Doguwa stated.

He clarified that IOC divestment does not imply a physical exit from Nigeria but rather a shift from shallow-water to deepwater investments. “None of these IOCs is leaving Nigeria. They remain commercially and economically committed to the sector,” he noted.

On his own, Hon. Tese Poole, Chairman of the House Committee on Environment, while contributing to the motion said that the Nation’s legal framework lacked clear provisions on IOC divestment.

He revealed that the Committee on Environment had extensively reviewed the issue and recommended the introduction of a Divestment Act to regulate future exits of oil and gas companies from Nigeria.

He proposed an amendment to ensure the Committee on Environment was included among the committees tasked with overseeing the implementation of the House resolution.

Following the extensive deliberations BBY members, the motion was unanimously adopted by the House and was subsequently referred to the Committees on Host Communities, Environment, Petroleum Resources (Upstream), and Legislative Compliance for further legislative action.

The House also mandated the NUPRC to enforce compliance with the PIA by rejecting divestment applications that fail to meet the highest standards of corporate accountability. The commission was also directed to conduct a detailed assessment of prospective operators’ financial, technical, and environmental capabilities before granting approval. (Nigerian Tribune)