Browsing: Petroleum Industry Act

In 2019, the oil and gas industry was responsible for around 5.8% of Nigeria’s real GDP, 95% of its foreign currency profits, and 80% of its budgetary income.

  • In August, NNPC agreed on new terms and conditions for six offshore licences controlled by international oil corporations (IOCs).
  • The new legal dispensation does not mean that the majors’ future activities in Nigeria will be easy.
  • Even if oil prices stay high, the value of Nigerian oil will never recover to the levels reached only ten years ago.

Landmark legislation in Nigeria’s oil industry

In 2021, Nigerian President Muhammadu Buhari assented to the Petroleum Industry Act (PIA) 2021. The approval concluded a 20-year commitment to overhaul Nigeria’s oil and gas industry. The PIA establishes a more suitable atmosphere for the sector’s growth. The Act also tackles the genuine grievances of groups most affected by the extractive industry.

The PIA is an attempt …