Blog

WITH the coronavirus pandemic, unstable oil supplies and uncertainty that held sway in the volatile global oil market, the year 2021 was challenging to oil and gas producing and exporting countries, including Nigeria. The situation was also worsened by pipeline vandalism, oil theft, illegal refining and environmental pollution.

Despite these and other challenges, the nation recorded many milestones, through the instrumentality of the Nigerian National Petroleum Company (NNPC) Limited, which drives the government’s interests in the oil and gas industry. For instance, it facilitated the emergence of the passage of Petroleum Industry Act (PIA), the nation’s comprehensive legislation, clearly the most profound highlight of the industry in the last 20 years. As a national oil company, the NNPC was at the forefront and provided the stimulus for the executive and the legislature to successfully midwife the passage of the Petroleum Industry Bill (PIB) into law (Petroleum Industry Act 2021). The passage of this law is envisaged to foster investment in the industry and delineate responsibilities to the various institutions.

Impact of PIA

The PIA culminated in the establishment of a commercialized NNPC Limited, entrenching accountability and good governance and promoting the exploration and exploitation of the petroleum resources in Nigeria for the benefit of all Nigerians as well as and foster the sustainable development of the host communities. It would ensure the efficient and effective technical and operational regulation of the upstream, midstream and downstream sectors of the oil industry through the activities of the Nigerian Upstream Regulatory Commission and the Nigerian Midstream and Downstream Regulatory Authority, among others.