Navigating Oil & Gas Regulatory Framework in Nigeria
Nigeria's oil and gas sector is governed by a complex regulatory framework that has evolved significantly with the passage of the Petroleum Industry Act (PIA) 2021. This legislation represents the most comprehensive reform of the sector in decades.
The PIA 2021 creates a more transparent and competitive environment for oil and gas operations in Nigeria while addressing long-standing community concerns.
The Petroleum Industry Act 2021
The PIA consolidates previous petroleum legislation and establishes new regulatory bodies including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Host Community Development
The Act introduces the Host Communities Development Trust Fund, requiring oil companies to contribute 3% of their operating expenditure to community development. This represents a significant shift in the industry's approach to stakeholder relations.
Author
Chukwuemeka Nwosu
Partner
Partner with expertise in Banking & Finance, Foreign Investment, and Capital Markets. He advises multinational corporations on Nigerian market entry strategies.
