Oil Pollution: NEITI demands full disclosure, accountability from operators

The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for improved accountability from oil companies over environmental pollution and cleanup efforts in Nigeria’s oil-producing areas.

It stated this at a media briefing in Abuja where the NEITI’s Executive Secretary, Dr Orji Ogbonnaya Orji, stressed the urgent need for full disclosure of environmental liabilities.

The call comes amidst a series of litigations by oil producing communities that are seeking justice against divesting oil majors in the Niger Delta. He disclosed that NEITI is collaborating with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Ministry of Environment to ensure transparency in environmental remediation funds.

“Oil and gas companies must be accountable for cleanup costs and remediation efforts,” he stated.

“NEITI will intensify efforts to ensure that these funds are properly utilised, and affected communities are not abandoned,” he added. The Niger Delta, home to Nigeria’s oil wealth, continues to suffer from unchecked pollution, with oil spills and gas flaring complicating environmental and health crises.

Despite various cleanup initiatives, many communities remain without access to clean water, fertile land, or compensation for damages. Beyond environmental concerns, NEITI also raised alarms over the ongoing wave of oil and gas asset divestments in Nigeria. As international oil companies (IOCs) scale down operations and transfer assets to local firms, there is a growing concern that polluted sites could be abandoned without proper cleanup.

“NEITI recognises the urgent need for transparency in these transactions. We will work to ensure that all financial, social, and environmental aspects of divestments are disclosed and that oil companies do not escape their obligations to host communities,” Orji said.

He called on the NUPRC and the Nigerian National Petroleum Company Limited (NNPC Ltd.) to enforce stricter regulations to ensure that companies divesting their assets fully remediate any environmental damage before exiting.

Another key issue raised by NEITI is the need for transparency in Nigeria’s forward oil sales, pre-sales of crude oil and gas used as collateral for government borrowing. These transactions, which play a critical role in government revenue, have long been shrouded in secrecy.

Orji noted the importance of making forward sales data publicly available. “We will intensify collaboration with NNPC Ltd. and other government agencies to disclose forward sales data, ensuring that revenues are accounted for and used in the best interest of the country.”

As part of its drive to strengthen governance in Nigeria’s extractive sector, NEITI reaffirmed its commitment to improving revenue tracking and contract transparency.

The agency plans to expand its industry reports to cover forward sales, environmental remediation funds, and revenue leakages that undermine the country’s economic stability.

Orji also disclosed that NEITI had reconstituted the Inter-Ministerial Task Team (IMTT) to implement recommendations from its industry reports. The IMTT, inactive for nearly seven years, has now been upgraded with director-level representation to enhance its effectiveness in addressing key sectoral challenges.

While acknowledging progress in strengthening transparency in Nigeria’s extractive sector, Orji admitted that significant challenges remain, including institutional constraints, funding limitations, and resistance to change. He called for collective action from government agencies, civil society and the media to sustain the momentum for reforms.