A COALITION of civil society organisations and media groups, has launched a petition demanding Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to publicly disclose how it managed gas flare penalties.
Nigerians can sign the petition here.
The petition also called on NUPRC to publicly disclose how environmental remediation funds, and oil company contributions to the Host Community Development Trust Fund (HCDTF) are being managed.
The group, which includes Accountability Lab Nigeria, the International Centre for Investigative Reporting (ICIR), and The Mail Newspaper, noted that the NUPRC failed to account for N454 billion in gas flare penalties that should have been collected from oil companies between 2021 and 2023.
The coalition expressed alarm over the mismanagement of the funds, which it said was designed to mitigate the environmental damage caused by oil exploration.
The petitioners argued that despite the provisions of the Petroleum Industry Act (PIA) 2021, communities in the Niger Delta continued to experience pollution, displacement, and loss of livelihoods with little evidence of remediation efforts.
They noted that political elites and retired military personnel had undue influence on the mismanagement of the funds, while affected communities suffered the devastating consequences of gas flaring and pollution.
According to the petition, despite the National Oil Spill Detection and Response Agency (NOSDRA) Gas Flare Tracker showing that oil companies were expected to pay N764.05 billion in penalties within the period, NUPRC records indicated it received only N309.5 billion.
This, the coalition said, raised concerns about corruption and regulatory failure, especially since Section 103 of the PIA 2021 mandates that gas flare penalties finance the Upstream Environmental Remediation Fund.
A recent two-part investigation into gas flaring penalties revealed multi-billion-naira shortfalls in payments meant for environmental remediation and relief for oil-producing communities.
According to the report, funded by The ICIR and published by TheMail Newspaper, oil companies have consistently failed to pay penalties as stipulated by the Petroleum Industry Act (PIA), while regulatory agencies like the NUPRC have failed to enforce compliance.
The report noted that the mismanagement of funds has had devastating effects on communities in Akwa Ibom and Rivers states, where erosion, coastal flooding, and farmland destruction have displaced residents and worsened poverty levels.
Section 104(4) of the Petroleum Industry Act (PIA) provides that “Money received from gas flaring penalties by the Commission (Nigerian Upstream Petroleum Regulatory Commission) under this section, shall be for the purpose of environmental remediation and relief of the host communities of the settlors on which the penalties are levied.”
Despite this provision, the investigation, alongside the petition, stated that no public records existed that detailed how the penalties were allocated or used for environmental remediation.
Citing different cases of destruction, the petition stressed that oil-producing communities such as Uzere in Isoko South LGA and Utagba Ogbe in Ndokwa West LGA continued to suffer from gas flaring, flooding, and ecosystem destruction, with no evidence of any funded remediation projects, leaving residents exposed to severe health hazards, displacement, and loss of livelihoods.
“Meanwhile, oil companies have amassed nearly N500 billion in additional gas flare penalties, yet these funds remain out of reach for communities suffering from health hazards, displacement, and loss of livelihoods. The failure to deploy these funds as intended undermines the very essence of the PIA’s environmental safeguards and raises critical questions about NUPRC’s role in ensuring accountability,” the statement added.
Demands
The coalition called on NUPRC to disclose how oil company contributions to the Host Community Development Trust Fund (HCDTF) and gas flare penalties were utilised.
They also demanded an explanation for the N454 billion discrepancy, full compliance with Freedom of Information requests, and the publication of financial statements for the Upstream Environmental Remediation Fund.
Part of the demands read: “Governance structures (Board of Trustees, Management Committees, and Advisory Committees) of the HCDTF must prioritise elected community representatives over political appointees to ensure genuine local participation and accountability.
“NUPRC must enforce full compliance from oil companies on penalty payments and engage host communities in decision-making on remediation projects. NUPRC must use collected funds to initiate projects addressing environmental damage from gas flaring and support affected communities.”
Nigerians can sign the petition here.
Usman Mustapha is a solution journalist with International Centre for Investigative Reporting. You can easily reach him via: umustapha@icirnigeria.com. He tweets @UsmanMustapha_M