Stakeholders in the Niger Delta have renewed calls for transparency, environmental justice, and community protection amid the ongoing wave of oil asset divestments, as the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) insists it will block any transaction that fails to meet its regulatory standards.

The commission’s stance was outlined at a community town hall on Oil Divestment and Transition Accountability held in Port Harcourt on Wednesday. The event, organised by the Human and Environmental Development Agenda (HEDA Resource Centre) with support from Transparency International (Australia) and the Natural Resource Governance Institute (NRGI), brought together regulators, civil society groups, and host communities.

NUPRC Pledges Strict Oversight
Representing the Executive Director of NUPRC, Mrs. Oritsemeyiwa Eyesan, the commission’s Assistant Director in Port Harcourt, Mr. Success Ikpe, said no company would be allowed to divest oil and gas assets unless it satisfies clearly defined regulatory requirements.
He explained that the commission’s framework prioritises technical competence, financial strength, and legal compliance of successor companies, stressing that incoming operators must demonstrate the capacity to manage assets more effectively than those divesting.

The commission also evaluates decommissioning and abandonment obligations to ensure liabilities are not irresponsibly transferred.
“Divestment is a legitimate commercial decision,” Ikpe said. “But under the Petroleum Industry Act 2021, such transactions are subject to strict regulatory oversight to ensure transparency, responsibility, and protection of national and community interests.”

He added that prospective buyers are scrutinised for financial health, operational capability, and adherence to legal and ethical standards, with special attention to concerns from host communities regarding environmental degradation, labour issues, and social investment continuity.

Communities Demand Accountability
Despite regulatory assurances, civil society groups highlighted that past divestments have left unresolved environmental and social challenges.
Executive Director of HEDA, Mr. Suleiman Arigbabu, said many multinational oil companies have exited operations in ways that shield them from accountability, leaving communities to contend with pollution, abandoned infrastructure, and loss of livelihoods.

He described the current divestment phase as a critical turning point and warned that without stronger enforcement, history could repeat itself.

“Across the region, oil exploration has come with heavy costs—oil spills, environmental degradation, and disrupted livelihoods,” Arigbabu said. “As these assets change hands, there is a real fear that these issues will remain unresolved.”

Inclusive Engagement Crucial
The town hall provided a platform to amplify community voices and advocate for accountability in the transition process. Stakeholders emphasised that host communities must be actively involved in decisions affecting their environment and future.

The discussions highlighted growing tensions between regulatory assurances and community expectations as the Niger Delta navigates a new phase in Nigeria’s oil and gas industry, marked by the exit of multinational operators and the entry of indigenous firms.