Implementation of the Petroleum Industries Act (NG0035)

Brief Description of Commitment: On 16 August 2021, the President signed the Petroleum Industry Bill (PIB) 2021 into law, providing a legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities, and related matters. Further to this, the Presidency approved an implementation structure comprising a Steering Committee and an Implementation Working Group/Coordinating Secretariat. While Steering Committee has the job of effective and timely implementation of the law in the course of transition to the new petroleum industry envisaged in the reform programme, the Implementation Working Group/Coordinating Secretariat. While Steering Committee has the job of effective and timely implementation of the law in the course of transition to the new petroleum industry envisaged in the reform programme, the Implementation Working Group/Coordinating Secretariat has the onerous task of developing the briefs (including model contracts and Regulations) that would be presented to the Steering Committee for consideration and approval. To get to the desired end, deliberate effort must be made to fast-track the implementation of the law in a manner that best achieves the stated objectives in line with the yearnings and aspirations of Nigerians whose lives will be impacted by the consequences of the decisions and actions of the committee and working group.

General Problem / Challenge Addressed by the Commitment: There have been long-drawn issues around extractive sector governance and deriving its potential socioeconomic benefits in the interest of Nigerians. While the extant law has the potential to address these issues, the effective and sustained implementation of the PIA is needed to guarantee that it achieves the expected objectives in line with the yearnings and aspirations of Nigerians whose lives will be impacted by the consequences of the decisions and actions of responsible state and non-state actors.

Specific OGP Issue(s) in Focus: This commitment will focus on public resource accountability.

Rationale for the Commitment: There is a need to establish and maintain systematic progress in the drive for accountability in the oil and gas, and by extension the extractive sector in Nigeria.

Main Objective: To ensure that the implementation of the Petroleum Industry Act leads to sustainable development through an effective and efficient use of Extractive resources.

Anticipated Impact: An all-round development through effective management of the resources accrued from the Extractive sector in Nigeria.

Expected Outcomes | Milestones (Performance Indicators)

1 . An efficient and effective oil and gas sector that contributes to National development | Step by step implementation process of the PIA as contained in the PIA implementation roadmap/guide map.

2. Enhanced citizens' engagement by increasing access to information on extractive sector revenue and service delivery. | Number of times the media, CSOs, and Citizen groups utilize, cite and engage the remedial issues and NEITI yearly sector audit issues.

3. Enhance transparency and accountability in the host community and fiscal governance structures of the sector | Number of Host Communities that sign the Global Memorandum of Understanding.

Planned Activities (Start Date - End Date | Expected Output(s) | Output Indicator(s))

1. Develop and issue regulations for the implementation of the PIA (NUPRC, NMDPRA) (January 2023 - December 2024 | Operationalization of the PIA. | 1. Number of consultations to harness inputs on operationalization of PIA held 2. Number of regulations drafted and gazetted on the PIA.)

2. Increase awareness of citizens on provisions of the PIA and its regulations, with special consideration for provisions that affect vulnerable and fragile communities (CSOs) (January 2023 - December 2024 | Increased citizen demand for effective implementation of PIA provisions | 1. Number of citizens' awareness engagements conducted on the PIA 2. Number of memos/letters/position papers/ media articles produced by CSOs and the media demanding timely/effective/sustained implementation of the PIA and its provisions)

3. Facilitate multi-stakeholder engagements towards advancement of Petroleum Host Community Development Trust establishment process (January 2023 - December 2024 | Commitments towards advancing PHCDT establishment process | 1. Number of Host Community management and advisory committees established. 2. Number of Host Community Trusts incorporated)

Source(s) of Funding: Federal Government Budget and Donor Agencies

Action Plan Review

Commitment 5. Sustain implementation of the Petroleum Industries Act (PIA)