AN APPRAISAL OF THE LEGAL AND INSTITUTIONAL FRAMEWORKS FOR ENVIRONMENTAL PROTECTION IN THE OIL AND GAS INDUSTRY IN NIGERIA

Abstract

The oil and gas industry is notably a pollution-ridden industry. From the initial seismic exploration, to refining and distribution, every stage is associated with negative environmental impacts. The Nigerian government has formulated policies, promulgated laws and established agencies over the years, for the regulation of the industry. Some of these agencies have played the dual role of promoting revenue accruing from the industry as well as regulating its activities, which dual role have been found to lead to the subjugation of the regulatory function in favour of the economic function. This paper aims at critically appraising the legal and institutional framework, as it relates to environmental protection in the oil and gas sector in Nigeria. Its objectives are the evaluation of extant laws regulating the oil and gas industry in Nigeria, with particular attention to the Petroleum Industries Act, as it relates to environmental protection. It appraises the institutions responsible for the enforcement of compliance to the laws and to determine their effectiveness in their statutory responsibility. The paper adopts the doctrinal method and finds that contrary to expectations, the Petroleum Industries Act leaves much to be desired with regard to the regulation of the industry. It recommends that the Petroleum Industry Act be amended to unbundle the conflicting role of the agencies and also strip the office of the minister of some of the numerous powers vested in it.