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The Petroleum Industry Act (PIA) 2021, recently enacted by the Nigerian National Assembly is
an amalgam of several earlier laws and memoranda of understanding (MOU’s), with important
new updates. It embodies comprehensive management instruments for tighter governance of the
industry. Now structured into the upstream, midstream, and downstream sectors, its governance
would prove more prudent. This contribution intends to outline and discuss the upstream sector
(exploration). The main research focus is the initial activities of the intending operator for which
is the careful assessment of available geological information to support any major decisions such
as fresh acreage acquisition, firm-in, or buy-out. Prior to acreage acquisition, the prospective
operator examines the business climate by assessing the technical, socio-political, and fiscal factors
as well as the potential upsides. Thus the design of the study encompasses the assessment of easily
available geological information all the way to the more intricate subsurface data acquisition and
the formulation of the field development plan as stipulated by the relevant provisions of PIA. Among the major findings of this study is that a successful exploration phase is firmly predicated on seismic acquisition with safety goal zero target and flawless drilling operations. An additional determinant of a successful exploration phase, which PIA has granted a maximum of six-year enterprise by an operator, is the strict application of a set of PIA provisions that may be termed nontechnical essentials, but which will guarantee a seamless exploration operation, namely community affairs, HSSE (Health, Safety, Security, and Environment), and the Nigerian Content. These are also governed by strict rules, some of them involving international protocols, as well as separate National Assembly enactments.

The prospects and challenges of the Petroleum Industry Act (PIA) with respect to national
development in Nigeria has been outlined using descriptive mechanism. As a nation, the
prospects of the PIA for its development cannot be over emphasize. Aspects which can hinder
the realization of the objectives of the Act have been identified and outlined. For instance, clear
definition of Host Communities, fiscal policies etc have been reviewed. Based on these
challenges, conclusions were reached, and recommendations have been proffered amongst
which is the institutionalization of fiscal and financial discipline and transparency particularly
to the public.

The Petroleum Industry in Nigeria remains pivotal and critical as a major source of national
revenue since the discovery of oil in commercial quantity in 1956. Given the severity of the impact
of oil industry operations and activities on the environment, human health, livelihood of people in
the host communities and sustainable development over the years in Nigeria, the Petroleum Industry
Act 2021 (PIA) is expected to effectively regulate the operations of petroleum companies and other
entities in the Nigerian oil and gas industry in line with global best practices. This paper reviews
the PIA and analyses its objectives, and benefits of its implementation and enforcement. The paper
recommends that host community development framework as envisage by the PIA should be seen
as complimentary to government obligations and other public development agencies in the Niger
Delta region, including Niger Delta Development Commission (NDDC) and the respective States’
Oil Producing Areas Development Commissions. Also, the paper recommends that there should be
cooperation between both regulatory agencies to avert unnecessary duplications of duties,
accreditations for facilities/ assets, equipment, consultants, contractors, and other support service
providers. In addition, agencies like Nigerian Content Development and Monitoring Board
(NCDMB) should focus on building the capacities of local consultants, project executors and other
critical stakeholders in the oil and gas sector, to enhance transparent, accountable, and effective
management and leadership for sustainable development and full compliance with the PIA.

The petroleum industries of most developing countries, especially petro-states like Nigeria and
have been gravely impacted by COVID-19 pandemic. The industry wrestles with a dual-clefted
and unprecedented dilemma, that of an oil price war and a devastatingly acute Covid-19
impact. Moreover, other underlying issues, such as an abrupt decline in oil prices,
OPEC/Russia divergent views on oil prices and cuts as OPEC and allied countries, often in
the quest for stabilised oil prices, moved to cut down combined output by 9.7 million bpd. This
was inevitable due to the fact of oil demand/supply imbalance occurring simultaneously with
the declination and rapid drop in biochemicals, chemicals and fossil fuels use. This was
necessitated by global lockdowns, industrial bottlenecks or slowdowns, travel bans, including
other restrictions and interruptions accruing from COVID-19 implementation protocols.
Likewise, the industry is undeniably confronted with irrefutable challenges traversing:
environmental, economic, political, or technological demands to tailor oil exploration and
production activities in accordance with wide-ranging issues tied to the sustainable
development paradigm. Moreover, the core of these demands includes environmental
protection, (expressed via biodiversity preservation, GHG and CO2 mitigations), energy
security, typified by reliability of products supplies, their affordability and economic growth.
Post the Paris Agreement in 2015, which reiterates the imperative of the transition into a low
carbon economy, the industry is placed in the peculiar position of bracing up to current signals
regarding divestments of funds from the sector and tackling the relentless plunge in oil prices.
Due to these daunting challenges, creating a nexus between oil exploitation and sustainable
development becomes an inescapable exigency for a petro-state like Nigeria. The paper
delineates the points of commonality and divergence between the SDGs and the Nigerian
petroleum industry regulations by assessing their competence to deliver on the goal targets
across the sustainable development paradigm. Moreover, it examines Nigeria’s recent omnibus
petroleum legislation, the Petroleum Industry Act (PIA) 2021. The paper conducts an
appraisal of this statute to determine its utility in ensuring a green economy in Nigeria via the
forging of synergies across the SDGs whilst eliminating potential tensions and trade-offs
across divergent goals to achieve a greener oil industry in a post-Covid Nigeria.