Mitigating Risk and Enhancing Governance: A Framework for Effective Implementation of Nigeria’s Petroleum Industry Act
1Nnadi Ezekiel Ejiofor, 2Okudu Ambrose, 3Oghenetega Omerhi and 4Ikwueze Stella
1Civil Engineering Department, Kampala International University, Uganda
2Engineering & Projects Department, Heritage Energy Operational Services Ltd., Warri, Nigeria.
3Production Division, Nigeria Liquified Natural Gas Company Limited, Bonny Island, Nigeria.
4Civil Engineering Department, Enugu State University of Science & Technology, Nigeria
Correspondence: nnadiezekiel@kiu.ac.ug
ABSTRACT
The Nigerian Petroleum Industry Act aims to modernize the industry, promote sustainable growth, and attract investments, despite challenges like ownership conflict, complexity, and outdated regulatory frameworks. This research utilized a combination of qualitative and quantitative methods to understand Nigeria’s Petroleum Industry Act (PIA), including a literature review, case studies, surveys, interviews, data analysis, policy analysis, stakeholder workshops, and fieldwork to identify industry trends and strategies. PIA aids Nigeria’s economic development by attracting local (4.97) and international investors (4.89), ensuring benefits of natural resources are distributed back to their original communities. Inadequate funding ranked first as the risk to PIA implementation with a mean value of 4.96 and delayed dividends delivery and Limited collaboration among stakeholders ranked 2nd and 3rd with a mean value of 4.88 and 4.75 respectively. The study ranks mitigating strategies for improving PIA application in the Nigerian oil and gas sector. Conformity with global best practice ranks first with a mean value of 4.94, followed by a conducive environment for oil business and transparency with a mean value of 4.87 and 4.74 respectively. All strategies were accepted due to their high mean score. The coefficient of determination (R2) is 0.660420, indicating that 66% of problems faced in the sector are resolved by PIA. The study concluded that Nigeria’s Petroleum Industry Assessment (PIA) gaps, suggesting that the 30% profit mandate for frontier basin exploration is unnecessary compared to clean energy sources. The study recommends amending Nigeria’s PIA to prevent host communities from sabotaging corporations’ facilities, establishing a dispute resolution system, and ensuring transparency in Act execution.
Keywords: Strategies, Risk, Petroleum Industry Act, Investment, Project Benefits, Oil and Gas
CITE AS: Nnadi Ezekiel Ejiofor, Okudu Ambrose, Oghenetega Omerhi and Ikwueze Stella (2024). Mitigating Risk and Enhancing Governance: A Framework for Effective Implementation of Nigeria’s Petroleum Industry Act. RESEARCH INVENTION JOURNAL OF ENGINEERING AND PHYSICAL SCIENCES 3(2):9-17.