Assessing Nigeria's Petroleum Industry Act 2021: Implications For The Global Energy Transition

Abstract

The escalating impacts of climate change over recent decades have necessitated
urgent action from nations heavily reliant on oil and gas to mitigate environmental
harm and advance the global energy transition agenda. Despite Nigeria’s
commitment particularly evidenced by the enactment of the Petroleum Industry
Act (PIA) 2021 aimed in part at reducing gas flaring, significant challenges persist.
Central among these is how Nigeria can reconcile revenue generation from its
substantial oil reserves with its obligations toward energy transition. This study
evaluates the PIA 2021’s regulatory framework in light of Nigeria’s pursuit of a
sustainable energy future and its commitments under the Nationally Determined
Contributions (NDCs) submitted in July 2021. Adopting a doctrinal legal research
methodology and analysing both primary sources such as the PIA 2021 and
secondary literature, the study finds that while the PIA represents progress, critical
gaps remain. Notably, it highlights the need for the establishment of a Future
Energy Fund to support renewable initiatives and calls for amendments to key
provisions, such as Section 104, which confer excessive discretionary powers on
regulatory authorities. The study concludes that targeted legal reforms are essential
to develop a comprehensive regulatory framework capable of ensuring country’s
effective transition to a sustainable energy economy