Fed Govt Creates Fund to Tackle Environmental Damage
By Patience Ikpeme
The federal government has created a fund that will be used to address damages to the environment caused by oil exploration activities
Known as the environmental remediation fund, the Nigerian Midstream and Downstream Petroleum Authority (NMDPRA) has issued guidelines on the operation of the fund.
This was disclosed in a press statement signed by the Authority’s General manager, corporate communications and stakeholders management Mr Kimchi Apollo in Abuja.
The NMDPRA environmental regulations now sets out the establishment of and financial contribution to the fund with the aim of “providing resources for the clean up, rehabilitation or management of negative environmental impact from petroleum operations nationwide”.
According to Kimchi Apollo, “the Authority will regulate and control the fund in line with these statute and other applicable laws.
The major source of funding will come from “contributions from licenses engaged in Midstream and Downstream Petroleum operations and also from accrued interest.
Details of the operations of the fund shows that the fund is expected to be utilized to provide funding “except where such operations are in accordance with section 8(d) of the Act.
In addition, “where the Authority decides to apply the fund to the procurement of goods, works or services for the utilisation of the fund, such shall be subject to laws applicable to public procurement.
Financial contributions are expected to be made on or before 31st December of every calendar year for each license including the year in which a license has been granted.
Six months from the day the regulation comes into effect, the NMDPRA shall “establish an interest yielding account to be known as the Midstream and Downstream Environmental Remediation fund account.
The press statement also disclosed that the NMDPRA has issued the Midstream and Downstream Petroleum safety Regulations 2023 which priorities safety measures and procedures in the midstream and downstream sector.
There is the guideline on the requirements and procedures for the decommissioning and abandonment of petroleum facilities in the midstream and downstream sector.
