LEGAL AND INSTITUTIONAL FRAMEWORK OF THE OIL AND GAS INDUSTRY IN NIGERIA: A CRITICAL OVERVIEW

Abstract

Abstract
This study comprehensively navigates Nigeria's oil and gas industry's legal terrain, unraveling
constitutional foundations, foundational laws, and shifts post the Petroleum Industry Act (2021). The dual
objectives elucidate constitutional mandates granting exclusive control to the Federal Government and
analyze legal frameworks, covering historical contexts and contemporary enactments. Starting with
constitutional provisions, notably Section 44(3), affirming the Federal Government's authority, the study
scrutinizes the Petroleum Act of 1969, delving into ownership structures, licensing criteria, and regulatory
powers. A pivotal juncture arises with the Petroleum Industry Act (2021), signifying a paradigm shift in
governance, administration, fiscal frameworks, and indigenous participation. The article evaluates the
Nigerian Oil and Gas Industry Content Development Act (2010) for local content promotion and scrutinizes
the Environmental Impact Assessment Act (1992) for environmental considerations. Fiscal dimensions are
explored through the Companies Income Tax Act, intricately linked to the Petroleum Industry Act (2021).
The study delves into Nigeria's OPEC membership, unraveling the global influence of this collaborative
entity on the nation's oil and gas sector. Findings encapsulate industry challenges, including environmental
degradation, corruption, and sluggish reforms. Despite hurdles, there is optimism that heightened
transparency and accountability can pave the way for sustainable industry management. In conclusion, the
study synthesizes key legal arguments, offering a detailed understanding of Nigeria's oil and gas legal
framework, emphasizing the imperative for proactive measures for industry viability and equitable benefits
for all stakeholders.
Keywords: Nigerian Oil and Gas, Legal Framework, Petroleum Industry Act, Governance and Institutions,
and Environmental Considerations