An Appraisal of the Legal Framework of the Nigerian Oil and Gas Industry

Abstract

The oil and gas industry is a critical sector that drives other sectors in Nigeria's economic governance, contributing significantly to the country's revenue earnings. This paper audited the myriad of laws pervading the industry and the resulting confusion in determining the extant laws governing the industry and their corresponding strength and weaknesses. The industry's operations have been affected by ecological deprivation, revenue mismanagement, disillusionment, host community exclusion and foreign dominance. Using the doctrinal methodology, the paper argued that the industry is plagued with myriads of laws and regulations, Petroleum Industry Act (PIA) 2021 being the principal legislation with others playing vital roles in addressing the industry’s current and primordial challenges to achieve sustainable development in Nigeria and the oil rich region. The paper discovers that the legal framework is 
marred by innumerable challenges, including continuity in the midst of change of regulatory bodies, too many regulations and laws to obey yet without much effect, weaknesses of enforcement institutions, persistent environmental and social concerns and increasing host community concerns. It concluded that the legal framework aims at driving a peaceful environment, a seamless and hitch free exploration in the oil rich region and recommended regular review and update of laws, strengthening of the regulatory agencies, improvement of the environmental and social standards and increase transparency and accountability in the operations to avert non-participation of the host communities.