Experts warn operators are taking advantage of PIA loopholes

In the aftermath of the Petroleum Industry Act (PIA) in Nigeria, operators are capitalizing on significant loopholes to under-declare crude oil production. The existing gap in the PIA has wittingly and unwittingly provided opportunities for some operators to resist change and continue with anti-industry practices with attendant economic consequences for the country. The Petroleum Industry Act, 2021, was signed into law in August 2021, introducing significant changes to revamp the legal and governance framework, administrative processes, regulatory and fiscal terms, and host community engagements in the oil and gas industry. However, checks reveal that the Act has inadvertently created opportunities for operators to exploit unsanctioned deep-water projects crucial for Nigeria’s production growth. Experts have warned that these projects, if not sanctioned, could lead to a decline in overall production by the end of the decade.