A CRITICAL EXAMINATION OF THE PETROLEUM INDUSTRY ACT: CHALLENGES AND PROSPECTS

Abstract

There is no gainsaying the fact that the oil and gas industry is the most important to the country in terms of revenue and foreign earnings, hence it is necessary that the operations of this industry be optimized. In Nigeria unfortunately, this has not been so as decades of mismanagement have prevented the industry from matching up with the 21 st century realities, competing globally as well as realizing its full potential. It was therefore necessary to comprehensively ensure innovation in the industry hence the need to enact a legislation that would provide a base for doing same which led to the enactment of the Petroleum Industry Act. Hence, this work seeks to discuss the Petroleum Industry Act 2021, discussing these innovations and prospects, the work analyzed several innovations such as the corporate restructuring of the Nigerian National Petroleum Corporation, the provision for an environmental remediation fund to host communities, dualization of the regulatory authorities to ensure greater oversight of the industry, introduction of hydrocarbon tax to discourage pollution, and the effect of these innovations on the industry in Nigeria. It equally discusses the challenges the Act faces such as the tensions over revenue sharing, the provision for a frontier basin exploration fund, the removal of subsidy and general implementation of the Act. The work equally conceptualizes the industry in Nigeria providing an overview of all relevant laws and institutions to the oil and gas industry discussing how they can concertedly, relying on the Act ensure that the oil and gas industry in Nigeria blossoms. The work recommends that emphasis be placed on implementation to ensure the provisions of the Act such as the environmental remediation fund for the host communities and other vital provisions make a positive effect on the industry and by extension, the nation.

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urn:uuid:44a6d1ea-8c6b-4d6c-9481-58a92673b855