… says Decommissioning Commission will undermine PIA, destabilise Nigeria’s oil regulatory framework

Oredola Adeola

Sen. Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), has urged the House of Representatives to halt the proposed Bill seeking to establish the National Commission for the Decommissioning of Oil and Gas Installations (NC-DOGI), 2024.

He insisted that the legislation is unnecessary and would duplicate functions already assigned to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) under the Petroleum Industry Act (PIA).

He stated this at the public hearing organised by the House of Representatives Committee on Petroleum Resources (Upstream) on the proposed Bill to establish the National Commission for the Decommissioning of Oil and Gas Installations (NC-DOGI), 2024, on Wednesday in Abuja.

The Minister reiterated that the PIA already provides a clear framework for decommissioning responsibilities under Sections 232 and 233, which are vested in the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Lokpobiri maintained that the PIA continues to deliver on its core objectives, stressing that creating a new commission would undermine the stability and predictability of Nigeria’s oil and gas regulatory environment.

“A predictable and stable legal framework attracts investors; any deviation will send wrong signals to the global community, something we cannot afford at this crucial time,” the Minister cautioned.

He noted that the oil and gas sector is undergoing significant transformation under President Bola Tinubu’s leadership, with the full implementation of the PIA restoring investor confidence and driving renewed activity across the upstream, midstream, and downstream value chains.

“The sector is now recording new Final Investment Decisions (FIDs) and witnessing revived operations that were stagnant for over a decade before the Renewed Hope administration of President Tinubu.

“The influx of investments we’ve seen underscores the critical importance of maintaining a stable legal framework like the PIA,” Lokpobiri affirmed.

Lokpobiri further warned that the proposed Bill poses a threat to the significant gains recently recorded in Nigeria’s oil and gas industry, stressing that the core issues it seeks to address are already adequately covered under the Petroleum Industry Act (PIA).

He explained that the oil and gas sector is highly capital-intensive and requires strong legal and regulatory protection to sustain investor confidence.

“The PIA already takes care of the decommissioning issues this Bill is trying to address.

“This sector is capital-intensive and capital-sensitive, and we must safeguard it with a stable and predictable framework,” the Minister stated.

Lokpobiri also cautioned against misconceptions about ownership of decommissioning funds, clarifying that such funds belong to the companies operating the assets, not the government or host communities.

He emphasised the need for Nigeria to maintain a globally competitive investment climate, warning that “capital is mobile and will always flow to environments that are friendly, stable, and predictable.”

The Minister added that globally, no oil-producing country operates a separate decommissioning commission, as such functions are typically vested in the upstream regulatory authorities, a structure Nigeria already has under the NUPRC through the PIA.

Alhassan Doguwa, Committee Chair, clarified that the hearing was part of an inclusive legislative process to ensure an evidence-based decision that balances economic growth, environmental sustainability, and responsible resource management.