Nigerian Lawmakers Demand Halt to IOC Divestments Amid Environmental Concerns
Nigeria’s House of Representatives has called on the Federal Government to suspend all divestment applications by international oil companies (IOCs), including Shell and TotalEnergies, until they have met their environmental and social obligations to the Niger Delta region.
The decision, reached during Thursday’s plenary, followed the adoption of a motion of urgent public importance moved by Minority Leader Kingsley Chinda.
Chinda, citing independent assessments by the United Nations Environment Programme (UNEP) and the Bayelsa State Oil and Environment Commission (BSOEC), highlighted the devastating impact of decades of oil exploration in the Niger Delta. He pointed to widespread contamination of water sources, soil infertility, biodiversity loss, and severe public health crises.
The lawmaker reminded the House that only recently, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) rejected Shell’s divestment request, citing unresolved environmental liabilities and concerns about the capacity of the prospective buyer, Renaissance Consortium, to manage the assets effectively.
“The House is aware that past divestments, including the sale of assets in Nembe to Aiteo, ExxonMobil’s asset transfers, and ENI/AGIP’s sale to Oando, have left communities grappling with unresolved pollution, exacerbated environmental degradation, and deepened social unrest,” Chinda stated.
He warned that approving further IOC divestments without holding companies accountable for past and ongoing liabilities would undermine Nigeria’s regulatory independence and transfer corporate environmental burdens to the state, potentially setting a precedent for impunity.
“The House is concerned that allowing these oil majors to exit without accountability would jeopardise the future of the Niger Delta, weaken Nigeria’s sovereignty, and burden the Nigerian people with the economic and environmental costs of cleanup,” Chinda argued.
Lawmakers insisted that any divestment must be preceded by a comprehensive and transparent review process, including full disclosure of environmental liabilities and legally binding commitments for remediation and reparations.
In response, the House resolved to:
Halt all divestment processes by Shell, TotalEnergies, and other IOCs until their historical environmental and social liabilities are addressed.
Ensure that no divestment proceeds without transparent consultations with Niger Delta communities and state governments.
Mandate the NUPRC to enforce compliance with the Petroleum Industry Act (PIA) and reject divestment applications that do not meet corporate accountability standards.
Require new asset buyers to undergo rigorous financial, technical, and environmental assessments before approvals are granted.
Establish an Environmental Restoration Fund, financed by IOCs, to address the estimated $100 billion in damages across the Niger Delta, as documented by UNEP and BSOEC.
Introduce community profit-sharing mechanisms to ensure that host communities benefit directly from oil and gas revenues.
The resolution signals a significant pushback against the longstanding practice of oil majors divesting from Nigeria without adequately addressing the environmental destruction left in their wake. With mounting pressure from lawmakers and affected communities, the future of IOC divestments in Nigeria is set to face unprecedented scrutiny.
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