Reps asks FG to immidiately halt Shell, TotalEnergies’ divestment

The House of Representatives on Thursday asked the federal government to immediately halt all divestment processes by Shell, TotalEnergies, and other International  Oil Companies until their historical environmental and social liabilities are addressed.

The Lower House also asked the federal government to ensure that no divestment proceeds without transparent consultations with Niger Delta communities and state governments.The Lower Chamber noted that independent assessments, including those by the United Nations Environment Programme (UNEP) and the Bayelsa State Oil and Environment Commission (BSOEC), have documented  catastrophic environmental and health impacts of oil exploration in the Niger Delta, including contaminated water sources, soil infertility, loss of biodiversity, and public health emergencies.

The House also recalled that past divestments by IOCs, such as Shell’s sale of assets in Nembe to Aiteo, ExxonMobil’s transfers, and ENI/AGIP’s sales to Oando, have left communities with unresolved pollution, worsened environmental degradation, and increased social unrest.

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It therefore warned that approving Shell’s or TotalEnergies’ divestment requests without addressing these historical and ongoing liabilities risks undermining Nigeria’s regulatory independence, transferring corporate responsibilities to the Nigerian state, and signaling impunity for environmental crimes; and would jeopardise the future of the Niger Delta

The House further held that a transparent review process, including full disclosure of environmental liabilities and enforceable commitments for cleanup and reparations, must precede any approval of IOC divestments.

The House consequently mandated the NUPRC to enforce compliance with the PIA and reject divestment applications that fail to meet the highest standards of corporate accountability and conduct detailed assessments of new operators’ financial, technical, and environmental capacities before granting approval.

The resolutions are sequel to a motion sponsored by Chinda Ogundu, representing Obior/Akpor federal constituency during plenary.

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The Green Chamber also called for the establishment of an Environmental Restoration Fund, financed by IOCs, to comprehensively address the UNEP and BSOEC’s estimated $100 billion in damages across the Niger Delta and introduce Community profit-sharing mechanisms to ensure that host communities benefit directly from oil and gas revenues.

It therefore directed the House Committees on Host Communities, Environment, Petroleum Resources (Upstream) and Legislative Compliance to ensure compliance with the resolutions and report back to the House within four weeks for legislative action.