The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has opposed the proposed establishment of the National Commission for Decommissioning of Oil and Gas Installations (NC-DOGI) under the 2024 bill currently before the National Assembly.
NUPRC’s position was contained in a memorandum submitted at a public hearing organised by the House Committee on Petroleum Resources (Upstream) in Abuja.
Earlier, the Chairman of the Committee, Rep. Ado Doguwa (APC–Kano), said Nigeria’s petroleum industry had over the years faced persistent challenges in the decommissioning and abandonment of oil and gas facilities.
According to him, these challenges have had environmental, economic, and social impacts, particularly on host communities.
“This, therefore, calls for a closer look at whether the existing regulatory frameworks are sufficient or need to be strengthened, and whether establishing a dedicated body such as the proposed commission would better serve national interests.
“It is, however, important to note that the Petroleum Industry Act (PIA) already provides for decommissioning and abandonment under Sections 232 and 233, assigning specific responsibilities to the NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and also establishing a fund to ensure these activities are properly planned and financed in line with regulations,” Doguwa said.
He explained that the NC-DOGI Bill, which was sponsored by the leadership of the House, is a significant legislative proposal aimed at addressing issues affecting human and environmental welfare.
According to him, it reflects the parliament’s commitment to ensuring the growth of the oil and gas sector, environmental responsibility, and sustainable community development.
Doguwa added that the public hearing formed part of the National Assembly’s legislative process designed to promote transparency, participation, and inclusiveness in lawmaking.
He said the engagement was intended to provide a formal platform for stakeholders to express their views, make observations, and offer recommendations that would enable the parliament to make fair and informed decisions.
In its memorandum, however, the NUPRC opposed the proposed establishment of the commission, describing it as unnecessary, duplicative, and contrary to international best practices, warning that it could discourage investments in the oil and gas sector.
The Commission maintained that the PIA already empowers both the NUPRC and the NMDPRA to effectively manage decommissioning activities in their respective sectors of the industry—responsibilities it said are already being competently discharged.
“Section 232 of the Petroleum Industry Act (PIA 2021) mandates every licensee or lessee to submit a Decommissioning and Abandonment Plan aligned with the approved Field Development Plan, and the Commission already enforces this requirement through an established review workflow,” the NUPRC stated.
“The House Committee on Petroleum Resources (Upstream) is respectfully urged to maintain decommissioning and abandonment oversight within the existing petroleum regulatory framework (NUPRC and NMDPRA).
“This approach will ensure technical coherence, economic efficiency, and alignment with both the PIA 2021 and global standards, thereby safeguarding Nigeria’s interests in the oil and gas sector and promoting the Federal Government’s ease of doing business initiatives,” it added.
