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House of Reps Halts Oil Company Divestments Over Unresolved Liabilities

Published

2 hours ago

February 6, 2025

Gloria Ikibah

…as lawmakers callRepresentativelegal framework on oil company divestment

By Gloria Ikibah

The House of Representatives has called on the federal government to immediately suspend all divestment moves by Shell, TotalEnergies, and other International Oil Companies (IOCs) until their outstanding environmental, social, and financial liabilities are properly addressed. Lawmakers insist that no sale or transfer of assets should proceed without full transparency and direct consultation with Niger Delta communities and state governments.

Additionally, the House is pushing for the creation of an Environmental Restoration Fund, funded by the IOCs, to tackle the estimated $100 billion in damages outlined by the United Nations Environment Programme (UNEP) and the Bayelsa State Commission. Legislators also demand the introduction of profit-sharing arrangements to ensure host communities receive direct benefits from oil and gas revenues.

The Upstream Petroleum Regulatory Commission has been directed to strictly enforce the Petroleum Industry Act (PIA) by scrutinizing all divestment applications, ensuring corporate accountability, and thoroughly assessing the financial, technical, and environmental capacity of new operators before approvals are granted.

These resolutions followed a motion of urgent national importance sponsored by House Minority Leader, Rep. Kingsley Chinda, titled “The Need to Protect Environmental Integrity, Community Welfare, and Regulatory Independence in the Niger Delta by Halting Divestments of International Oil Companies, including Shell and TotalEnergies.” The motion was debated and adopted during Thursday’s plenary session.

Speaking on the motion, Chinda emphasised the federal government’s responsibility to safeguard the rights and welfare of its citizens, particularly Niger Delta residents, who have suffered decades of environmental degradation and socio-economic hardship due to oil exploration. He warned that approving divestments without resolving these long-standing issues would set a dangerous precedent.

The motion reads in part: “The House notes that the Nigerian Petroleum Industry Act, PIA, vests the Nigerian Upstream Petroleum Regulatory Commission with the responsibility to regulate the upstream petroleum sector in line with national interests and global best practices.

“The House also notes that independent assessments, including those by the United Nations Environment Programme, UNEP, and the Bayezid State Oil and Environment Commission, have documented the catastrophic environmental and health impacts of oil exploration in the Niger Delta, including contaminated water sources, soil infectivity, loss of biodiversity, and public health emergencies.

“The House is aware that recently the Nigerian Upstream Petroleum Regulatory Commission has rejected Shell’s divestment application, citing failure to address environmental liabilities and concerns about the capacity of the Renaissance Consortium to manage the assets effectively.

“The House is also aware that past divestment by IOCs, such as Shell’s sale of assets in Nembe to Aleppo, ExxonMobil’s transfer, and E&I’s agile sale to Rwanda have left communities with unresolved pollution, worsened environmental degradation, and increased social unrest.

“The House is concerned that approving Shell and Total Energy’s divestment request, without addressing these historical and ongoing liabilities, risks undermining Nigeria’s regulatory independence, transferring corporate responsibilities to the Nigerian state, and signaling impunity for environmental crimes.

“The House is also concerned that allowing IOCs to divest without accountability will jeopardize the future of the Niger Delta, undermine Nigeria’s sovereignty, and burden the Nigerian people with the economic and environmental costs of cleanup.

“The House believes that a comprehensive and transparent review process, including full disclosure of environmental liabilities and enforceable commitments for cleanup and reparations, must precede any approval of IOC divestments.

“The House is worried that if regulatory independence is not safeguarded to uphold the rule of law and protect national interests against undue corporate and political interference, the sovereignty of the country will be threatened and citizens’ trust in the government would further diminish”.

Lawmakers who spoke in support of the motion acknowledged the federal government’s ongoing efforts to address oil industry challenges through relevant agencies.

Chairman of the House Committee on Petroleum Upstream, Rep. Alhassan Ado Doguwa, emphasized that legislative intervention would enhance these efforts, ensuring a more comprehensive approach to managing oil sector transitions.

“This motion not only allows us to tackle the pressing issues affecting our people, but it also provides an opportunity to revisit existing legal frameworks. We must introduce permanent statutory provisions to address gaps that were overlooked during the enactment of the Petroleum Industry Act (PIA),” Doguwa stated.

He further clarified misconceptions about divestment, explaining that International Oil Companies (IOCs) are not physically exiting Nigeria but rather shifting investments from shallow-water to deep-sea operations.

“Divestment, in this context, does not mean these companies are leaving Nigeria entirely. They remain committed to their corporate, commercial, and economic responsibilities within the sector. It is essential that this distinction is understood,” he added.

Deputy Chairman of the House Committee on Environment, Rep. Tersee Ugbo, noted that multiple committee sessions and retreats had revealed a critical oversight: the PIA lacks clear provisions on how divestments should be handled.

“We discovered that divestment was completely omitted from the PIA, and there are no proper legal guidelines for how IOCs should exit their investments. This gap has led to discussions on the need for a Divestment Act to establish a structured framework for such transitions,” Ugbo explained.

Lawmakers stressed that without a well-defined regulatory structure, unchecked divestments could pose significant economic and environmental risks to host communities and the country at large.

The Deputy Speaker, Rep. Benjamin Kalu who presided over plenary in his ruling refers the motion to the Committee on Host Communities, Committee on Environment, Committee on Petroleum Resources Upstream, and Committee on Legislative Compliance and repoet back in foru weeks for further legislative action.

Related Topics:chairman Chinda community Nigeria Nigerian

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Just in; Tinubu fires UNN VC, announces leadership changes at several federal varsities ( LIST)

Published

22 minutes ago

February 6, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

President Bola Tinubu has fired VC of UNN and other federal universities.

These changes are effective immediately.

At Yakubu Gowon University, President Tinubu dissolved the entire governing council and relieved Professor Aisha Sani Maikudi of her duties as Vice-Chancellor.

Senator Lanre Tejuoso, currently Pro-Chancellor of the University of Agriculture, Makurdi, has been appointed Pro-Chancellor of the Yakubu Gowon University. He will be succeeded in Makurdi by Senator Joy Emordi, now pro-chancellor of Alvan Ikoku University of Education.

To succeed Maikudi, President Tinubu appointed Professor Lar Patricia Manko as Acting Vice Chancellor at the Yakubu Gowon University for a six-month term. She will not be eligible to apply for the substantive Vice Chancellor position when it becomes available.

In addition, President Tinubu has removed Professor Polycarp Emeka Chigbu from his position as Acting Vice-Chancellor at the University of Nigeria, Nsukka (UNN), before his tenure ends on February 14.

Professor Oguejiofu T. Ujam has been appointed as his successor for six months and will not be eligible to apply for the permanent position.

The leadership changes at UNN extend to the role of Pro-Chancellor, with Gen. Ike Nwachukwu reassigned to Pro-Chancellor at the University of Uyo. President Tinubu appointed Engineer Olubunmi Kayode Ojo as the new Pro-Chancellor of UNN. Previously, Ojo held the same position at the Federal University of Lokoja and the Federal University of Oye-Ekiti.

Professor Zubairu Tajo Abdullahi, currently the Pro-Chancellor of the University of Uyo, has been appointed to succeed Ojo at the Federal University of Lokoja.

Senator Sani Stores is the new Pro-Chancellor of Alvan Ikoku University of Education, succeeding Senator Joy Emordi. Senator Stores is a Council Member at the University of Nigeria, Nsukka.

Additionally, Barrister Olugbenga Kukoyi, a current Council Member at the University of Nigeria, Nsukka, has been appointed the new Pro-Chancellor of Nnamdi Azikiwe University in Awka, Anambra State.

All appointments and reassignment decisions are effective immediately.

President Tinubu emphasised that these changes reflect his administration’s commitment to revitalising Nigeria’s higher education system through dynamic leadership and accountability.

The restructuring aims to strengthen governance and academic excellence within Nigeria’s tertiary education sector.

News

Love gone awry as 19-Yr-Old Girl Sets Boyfriend’s Family Home on Fire in Gambia

Published

30 minutes ago

February 6, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

A 19-year-old girl, Ramatoulie Baldeh, has been arrested for setting f!re to her boyfriend’s family home in Kerr Sering, Gambia.

The incident occurred on Tuesday, February 4, 2025 following a dispute with her boyfriend.

According to Gambia media, Ramatoulie lit a plastic bag and threw it onto the bed before opening a gas cylinder.

The fire quickly spread, engulfing the entire house and destroying all belongings.

Although no injuries were reported, the f!re caused extensive damage.

At the time of the incident, there were 10 tenants in the compound.

The fire also spread to their apartments, leaving them with nothing.

One of the affected tenants told journalists, “We are now homeless, with all our belongings destroyed. We urgently need help.”

The suspect is currently in custody at the Senegambia Police Station as CID officers continue their investigation.

News

FRSC Officers beat up Policeman, seize his gun, after he shot at their colleague

Published

33 minutes ago

February 6, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

A viral video has shown the moment officers of Federal Road Safety Corps (FRSC), Lagos State Command beat up an alleged police officer for shooting at their colleague, who is now fighting for his life.

It was learnt that the incident occurred during an enforcement operation targeting counterfeit number plates, part of a broader initiative launched by the FRSC under the Lagos Sector Command. According to Channels Television, the Corps Commander, Kehinde Hamzat, who was supervising the operation, did not provide specific details about the incident as of the time of filing this report.

However, he encouraged journalists to remain patient as he investigates the circumstances surrounding this unfortunate occurrence. It is still unclear whether the security personnel involved is connected to the Nigeria Police Force (NPF), and as of this report, there have been no statements from police authorities in Lagos regarding the matter.