Petroleum Legislation and the Economic Impact of the Petroleum Industry Act (PIA) in Nigeria

Year : 2025 | Volume : 15 | 03 | Page : –
    By

    Nnaemeka Uwaezuoke,

  • Eke Ndukwe Prince,

  1. Senior lecturer, Department of Petroleum Engineering, Federal University of Technology, P.M.B 1526, Owerri, Nigeria
  2. Recent Graduate, Department of Petroleum Engineering, Federal University of Technology, P.M.B 1526, Owerri, Nigeria

Abstract

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The Petroleum Industry Act (PIA) was enacted in 2021 to reform Nigeria’s petroleum sector by improving regulatory efficiency, investment climate, revenue generation, and host community engagement. This study examines its economic impact using policy analysis, economic data review, and comparative assessment with global best practices. Findings reveal that the PIA has improved governance, with NNPC Limited recording a 28% profit increase in 2024. However, regulatory uncertainty, such as the blocked Shell divestment, continues to deter investors. While government revenue has increased, oil theft and fiscal leakages remain major challenges. The Host Community Development Trusts (HCDTs) have helped reduce vandalism, but fund allocation inconsistencies persist. Environmental regulations under the PIA exist, yet gas flaring and oil spills remain problematic due to weak enforcement. For the PIA to achieve its full potential, policy consistency, improved transparency, and stronger enforcement of environmental and investment policies are essential.

Keywords: Petroleum Legislation, Petroleum Industry Act, Economic Impact, Host community development Trusts, Nigeria.

How to cite this article:
Nnaemeka Uwaezuoke, Eke Ndukwe Prince. Petroleum Legislation and the Economic Impact of the Petroleum Industry Act (PIA) in Nigeria. Journal of Petroleum Engineering & Technology. 2025; 15(03):-.
How to cite this URL:
Nnaemeka Uwaezuoke, Eke Ndukwe Prince. Petroleum Legislation and the Economic Impact of the Petroleum Industry Act (PIA) in Nigeria. Journal of Petroleum Engineering & Technology. 2025; 15(03):-. Available from: https://journals.stmjournals.com/jopet/article=2025/view=0


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Ahead of Print Subscription Review Article
Volume 15
03
Received 23/04/2025
Accepted 29/05/2025
Published 10/06/2025
Publication Time 48 Days
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