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Experts Reject Plan to Create New Oil Agency

A proposal to set up a new government agency for shutting down old oil facilities in Nigeria has been met with strong opposition from industry experts and regulators.

The proposed agency, backed by the House of Representatives Committee on Petroleum (Upstream), is aimed at managing the decommissioning of oil sites and protecting communities and the environment. The bill’s sponsor, Alhassan Ado Doguwa, described it as a major step toward meeting global standards in the oil and gas sector.

However, during a meeting in Abuja with lawmakers and key stakeholders, several experts argued that the new agency is not needed. They said Nigeria already has laws and institutions that handle this process under the Petroleum Industry Act (PIA).

Mark Emmanuel, a director at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), explained that oil companies are already required by law to handle decommissioning, with funds set aside and monitored by the NUPRC. He warned that creating a new agency would be wasteful, especially since most oil fields in Nigeria are still active.

Officials from the Ministry of Environment also opposed the plan, saying existing agencies like NOSDRA and NESREA already cover decommissioning through current regulations.

Many agreed that instead of creating a new body, the government should strengthen the ones already in place.