By Mercy Aikoye
The House of Representatives has urged the Federal Government to halt divestment applications from International Oil Companies (IOCs) like Shell and Total Energies until they meet their environmental and social obligations to the Niger Delta region.
This decision was made after the adoption of a motion moved by House Minority Leader, Hon. Kingsley Chinda, during Thursday’s plenary.
Chinda highlighted the devastating environmental and health impacts of oil exploration in the Niger Delta, citing independent assessments by the United Nations Environment Programme and the Bayelsa State Oil and Environment Commission. These assessments revealed contaminated water sources, soil infertility, loss of biodiversity, and public health emergencies.
The lawmaker recalled that the Nigerian Upstream Petroleum Regulatory Commission recently rejected Shell’s divestment application due to its failure to address environmental liabilities. Chinda also noted that past divestments by IOCs have left communities with unresolved pollution, worsened environmental degradation, and increased social unrest.
The House is concerned that approving divestment requests without addressing historical and ongoing liabilities risks undermining Nigeria’s regulatory independence and signaling impunity for environmental crimes. They believe that a comprehensive and transparent review process must precede any approval of IOC divestments.
The House urged the Federal Government to immediately halt all divestment processes by Shell, TotalEnergies, and other IOCs until their historical environmental and social liabilities are addressed. They also emphasized the need for transparent consultations with Niger Delta communities and state governments.
Furthermore, the House mandated the NUPRC to enforce compliance with the Petroleum Industry Act and reject divestment applications that fail to meet the highest standards of corporate accountability. They also called for detailed assessments of new operators’ financial, technical, and environmental capacities before granting approval.
The House also advocated for the establishment of an Environmental Restoration Fund, financed by IOCs, to comprehensively address the estimated $100 billion in damages across the Niger Delta. They also proposed introducing community profit-sharing mechanisms to ensure that host communities benefit directly from oil and gas revenues.
This move by the House of Representatives is a significant step towards holding IOCs accountable for their environmental and social obligations in the Niger Delta region. It also highlights the need for transparency and community engagement in the divestment process.
