Iran-Russia Oil Sanctions and Implications for the Implementation of Nigeria's Petroleum Industry Act

Abstract

The imposition of sanctions on Iran-Russia Oil is expected to have implications for the recipient economies, and by extension, Nigeria. However, there are claims that the Nigerian economy is not benefiting optimally from its oil resources, and this is attributable to outdated rules and regulations in the sector. Addressing the challenges informed the enactment of the Petroleum Industry Act. The study identified the contributions and failures of the PIA to oil sector reforms in Nigeria. Moves theory applies from the perspective that the outcome of the planned position is dependent on the choices made by the concerned players/stakeholders. Qualitative data were sourced using documentary analysis from a total of ten purposively selected materials, and based on their relevance to the study. The contributions of the PIA have included the consultation of stakeholders in its making, the provision of a legal, regulatory, and fiscal governance framework for upstream, midstream, downstream, and host communities, and security interest process simplification. The PIA has failed to protect the workers in the sector from work-stress-related issues, created multiple agencies and allotted power to those without major roles. Also, the allotted 3 per cent for the development of the host community is relatively small. The study concluded that stakeholders need to protect the interests of not only the investors, the host community, but also the workers, to propel oil production. The study recommended an amendment of the PIA to allow for the protection of workers in the oil sector and to allow for high output.