Nigeria’s Oil Industry Overhaul

Nigeria’s Oil Industry Overhaul

Although Nigeria is Africa’s largest oil and gas producer, its petroleum sector has long suffered from frequent scandals, severe mismanagement and a lack of coherent guidelines and regulations.

Furthermore, Nigeria’s state oil company, the Nigerian National Petroleum Corporation (NNPC), has become synonymous with corruption in Nigeria. Widely accepted as being one of the world’s most opaque national oil companies, the NNPC has gained a reputation for its hazy finances and its penchant for engaging in non-transparent business dealings with both domestic and international corporations.

While these failings are openly acknowledged, successive governments have failed to effectively initiate a much-needed overhaul of Nigeria’s oil and gas industry. Until now.

On 25th May 2017, Nigeria’s Senate passed the Petroleum Industry Governance Bill (PIGB), a new legal framework that seeks to reform how Nigeria’s oil and gas industry is structured, regulated and funded.

More specifically the PIGB aims to ensure value addition and internationalisation of Nigeria’s petroleum industry through the creation of both efficient and effective governing institutions, with clear and separate roles and commercially oriented and profit driven entities. It also seeks to promote transparency and accountability in the administration of petroleum resources and foster a conducive business environment for petroleum industry operations.

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