Implications of the Petroleum Industry Bill for Niger Delta Host Communities.
Publication Date: 03/05/2026
Author(s): C. O. Okwelum (Ph.D.), A. J. Onoyemeakpo (Ph.D.), A. O. Okwelum.
Volume/Issue: Volume 9, Issue 1 (2026)
Page No: 74-88
Journal: African Journal of Law, Political Research and Administration (AJLPRA)
Abstract:
Introduction: The long awaited Petroleum Industry Bill has been passed into law by the Buhari administration. One of the expectations of the law was the provision of 10 percent of oil resources mined in the Delta for the host communities. This has been dashed. Rather, 30 percent of the profit of NNPC ltd is provided for frontier exploration. This was dramatic. Methodology: This study which is doctrinal in method was mainly anchored by newspapers and parliamentary reports. It analyzed the circumstances that informed the delay in the passage of the bill for over 20 years and those surrounding the passage. It reviewed the opinions of focused groups and stakeholders in the region and the roles played by legislators preceding the passage of the bill. Findings: The study found that the State and the multinational oil companies have continued to act in concert to shortchange host communities. Results: The outcome of the bill led to the expansion of the definition of host communities; the provision of frontier exploration fund, and the restriction of import license to oil refineries. Conclusion: It concludes that the passage of the bill into law did not meet the agitations of the host communities. Rather, it has exacerbated them even when several efforts have been made in the past to assuage them but to no avail. Recommendations: It recommends that the Act should be reviewed to reflect the aspirations of the host communities by increasing their percentage to 10 while bringing down the percentage for frontier exploration fund to 10.
Keywords:
Petroleum Industry Act, Nigerian Petroleum Bill, Host Communities, Frontier Exploration Fund, Nigerian National Petroleum Corporation Limited.
