Petroleum Industry Bill (PIB) 2021 - A Game Changer ? (UPDATE)

PREFACE

The National Assembly has finally passed the Petroleum Industry Bill (PIB), 2021. The key objective of the PIB is to overhaul and transform the Nigerian oil gas industry. The Bill is now awaiting the assent by the President. However, the key question that is being asked is: will the PIB be the game changer for the industry at a time when major oil producers are seeking to transition to clean energy? Only time will tell.

The oil and gas industry has a significant impact on the Nigeria's economy. Though the industry contributes less than 10% to the country's gross domestic product, it contributes about 90% of the foreign exchange earnings and 60% of total income. Consequently, any adverse change in the industry will have a big and long-term impact on government finances. This is the reason why successive governments have remained focused on the sector despite various discussions on diversifying the economy.