The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has secured over $400 million in pre-sale decommissioning and abandonment obligations from recent oil asset sales, aiming to shield the country from potential financial and environmental costs.

NUPRC CEO Gbenga Komolafe announced the milestone at the NEITI Companies Forum in Lagos. Represented by Deputy Director Efemona Bassey, he said the commission learned from global examples, including the North Sea, Gulf of Mexico, and Alberta, Canada, where decommissioning costs have reached billions of dollars.

Komolafe explained that these liabilities were secured through escrow accounts and Letters of Credit, consistent with the Petroleum Industry Act. Environmental remediation commitments of more than $9.2 million were also included. Since April 2023, the commission has approved 94 decommissioning plans, totaling $4.42 billion in liabilities, to be remitted gradually over the life of the oil fields.

The initiative, supported by NEITI and the Oil Producers Trade Section (OPTS), is designed to protect host communities, safeguard the environment, and ensure smooth transitions of oil assets. Komolafe noted that the regulatory framework for escrow accounts has been finalized and is awaiting gazetting by the Ministry of Justice.

NEITI Executive Secretary Dr. Ogbonnaya Orji emphasized that compliance with mandatory industry audits is legally required, enhancing transparency, accountability, and investor confidence in Nigeria’s extractive sector. The forum also highlighted issues such as data disclosure, contract transparency, and community development.

Through these measures, NUPRC aims to prevent Nigeria from inheriting costly liabilities while promoting sustainable practices in the oil industry.