ACCOUNTABILITY IN HOST COMMUNITY DEVELOPMENT TRUST FUND, GAS FLARE PENALTIES, AND ENVIRONMENTAL REMEDIATION: A CALL FOR TRANSPARENCY FROM NIGERIAN UPSTREAM PETROLEUM REGULATORY COMMISSION.

On behalf of Accountability Lab Nigeria, the International Centre for Investigative Reporting (ICIR), The Mail Newspaper and concerned Nigerian citizens, we call on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to publicly disclose all collected gas flare penalties, planned environmental remediation projects, and contributions made by oil companies to the Host Community Development Trust Fund (HCDTF).

The Petroleum Industry Act (PIA) 2021 was enacted to ensure that oil-producing communities benefit from extractive activities through the HCDTF. However, mounting evidence suggests that these funds are being mismanaged, with retired military personnel and political elites exerting undue influence. Instead of prioritizing the needs of affected communities, these individuals have allegedly diverted funds to serve personal and political interests, leaving communities to bear the brunt of unchecked environmental degradation.

N454 BILLION UNACCOUNTED FOR IN GAS FLARE PENALTIES

Despite regulatory provisions, the NUPRC has failed to provide a transparent account of gas flare penalties collected. According to data from the National Oil Spill Detection and Response Agency (NOSDRA) Gas Flare Tracker, oil companies were expected to pay N764.05 billion in penalties between 2021 and 2023. However, NUPRC reports confirm receiving only N309.5 billion, leaving a staggering shortfall of N454 billion unaccounted for.

This raises urgent concerns about the integrity of Nigeria’s environmental remediation framework. Section 103 of the PIA 2021 mandates the establishment of the Upstream Environmental Remediation Fund (the Fund) to finance the rehabilitation and management of environmental damage caused by oil and gas operations. The Upstream Environmental Remediation Fund Regulations further require that this Fund, administered by the Commission, be transparently managed, with proper accounts maintained and an annual statement published within 180 days after the end of each financial year. Yet, no public records exist detailing how the gas flare penalties received have been allocated or utilized for environmental projects.

COMMUNITIES LEFT IN ENVIRONMENTAL RUIN

People who live in oil-producing areas in the Niger Delta, such as Uzere in Isoko South LGA and Utagba Ogbe in Ndokwa West LGA, are still dealing with the terrible effects of gas flaring, flooding, and ecosystem damage. Despite NUPRC's reported collection of N309.5 billion, there is no evidence of funded remediation or relief projects as stipulated by the PIA.

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.

DEMAND FOR PUBLIC DISCLOSURE AND ACTION

1. NUPRC must disclose oil company contributions to the HCDTF and gas flare penalties, detailing how funds are utilized for community development and environmental remediation;
2. The commission must explain the discrepancy between the expected N764 billion in gas flare penalties and the received N309 billion, ensuring transparency in fund collection;
3. NUPRC should fully comply with Freedom of Information requests and publish the required annual financial statements of the Upstream Environmental Remediation Fund;
4. The penalties for gas flares, the HCDTF, and the Upstream Environmental Remediation Fund must all be subject to an independent audit, and the results must be made public;
5. Governance structures (Board of Trustees, Management Committees, and Advisory Committees) of the HCDTF must prioritize elected community representatives over political appointees to ensure genuine local participation and accountability;
6. NUPRC must enforce full compliance from oil companies on penalty payments and engage host communities in decision-making on remediation projects;
7. NUPRC must use collected funds to initiate projects addressing environmental damage from gas flaring and support affected communities. 

Niger Delta communities cannot continue to bear the brunt of environmental devastation while funds meant for remediation remain unaccounted for. Join us in demanding full transparency and accountability from NUPRC.

Sign this petition to ensure that funds meant for environmental justice are properly utilized for the benefit of affected communities. Our communities deserve accountability, not secrecy.