AN EXAMINATION OF THE SOCIAL AND ENVIRONMENTAL IMPLICATIONS OF THE PETROLEUM INDUSTRY ACT, 2021.

ABSTRACT

This research work examines the social and environmental implications of the Petroleum Industry Act, 2021 (PIA) and the institutional framework that would enhance the social and environmental impact of the PIA Act in the oil producing areas. For many years, Nigeria has long been seen as a prime example of a country plagued by the resource curse, where abundant natural resources have failed to translate into prosperity and development. This has led to the enactment of the Petroleum Industry Act, 2021. The Petroleum Industry Act, 2021 represents the most comprehensive review of the legal framework for oil and gas sector in Nigeria since the industry began commercial operations in 1960s. This research adopts the doctrinal methodology. As much primary sources of material were used. In discussing the extent to which the PIA has impacted on the social and environmental lives of oil producing areas, findings reveal that part of the criticism against the new law is the 3% allocation of operating expenditure to the host communities. The host communities are seeking for a 10% share, but the PIA has only allocated 3% to the Host Community Development Trusts Fund, a significant shortfall from their expectations. The research recommends an immediate response for a review of the 3% host community trust fund and concludes that a proper system of distribution should be provided.