Reps Call for Suspension of International Oil Companies’ Divestments

The House of Representatives has urged the Federal Government to temporarily halt the divestment of assets by International Oil Companies (IOCs), including Shell and TotalEnergies, until they meet their environmental and financial obligations.

Lawmakers expressed concerns that IOCs exiting Nigeria’s oil sector have not fully addressed issues related to environmental degradation, abandoned assets, and outstanding liabilities. They stressed that communities in oil-producing regions continue to suffer from pollution, loss of livelihoods, and inadequate remediation efforts, making it crucial for these companies to fulfill their responsibilities before transferring their assets.

The move comes amid a wave of divestments by major oil firms shifting their focus from onshore operations to offshore projects, citing security concerns and operational challenges. While these sales open opportunities for indigenous companies to take over key assets, legislators insist that due process must be followed to ensure affected communities are not left without redress.

The House has called for stricter oversight in the divestment process, urging regulators such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce compliance with environmental laws and corporate social responsibility commitments.

Stakeholders in the oil sector have echoed the lawmakers’ concerns, emphasizing the need for a transparent and responsible exit strategy by IOCs to safeguard Nigeria’s energy industry and local communities. The debate continues on how best to balance foreign investment with accountability in the country’s oil and gas sector.