Bill Sponsor: Sen. Olamilekan, Adeola Solomon (Ogun West)
Bill Progress: First Reading
The Petroleum Industry Act (Amendment) Bill, 2025 (SB. 905) aims to address key areas of the Petroleum Industry Act (PIA) of 2021, a pivotal law that reformed the legal, governance, regulatory, and fiscal landscape of the nation’s petroleum sector.
One of the primary focuses of the proposed amendments includes addressing fiscal and revenue provisions. In recent discussions regarding the PIA, concerns have emerged over escalating revenue loss and fiscal leakage within the petroleum sector. The amendment seeks to establish more robust mechanisms for revenue generation and management, thereby enhancing accountability and transparency.
Institutional restructuring is another key area likely to be addressed by the amendment bill. Potential changes may involve the governance and ownership structure of the Nigerian National Petroleum Company Limited (NNPCL). Specifically, the proposal may involve vesting sole ownership of NNPCL with the Ministry of Finance Incorporated (MOFI) and redefining the roles of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) concerning Production Sharing Contracts. These adjustments are aimed at improving operational efficiency and regulatory oversight within the industry.
Furthermore, the amendment bill is expected to focus on host community development. Previous initiatives have attempted to increase the financial contributions to the Host Communities Development Trust Fund, currently set at 3% of operating expenditure. Enhancing these contributions would provide vital support for the communities directly impacted by oil and gas activities, fostering socioeconomic development and addressing long-standing grievances.
As the legislative process unfolds, the Petroleum Industry Act (Amendment) Bill represents a crucial opportunity for lawmakers to refine and strengthen the regulatory framework governing Nigeria’s vital petroleum industry.