Governance issues impede PIA implementation
Experts have identified inadequate execution strategy and governance issues as the main obstacles to the Petroleum Industry Act's (PIA) successful implementation. The viewpoint was presented during the CSR-in-Action Group webinar, which had the theme "Navigating the Shift– Essential Implementation Insights for Businesses."
Key stakeholders had a forum to discuss the PIA's effects on community stakeholders at the event.
The PIA is being implemented agency by agency without a unified, comprehensive plan to direct the process, according to Orji Ogbonnaya, Executive Secretary, Nigeria Extractive Industries Transparency Initiative (NEITI).
The lack of a coordinated implementation plan driven by stakeholders that include civil society, businesses, and the government is concerning since it compromises accountability and transparency. Without this kind of cooperation, organisations could refrain from pushing the envelope in terms of accountability and openness," he warned.
Meka Olowola, Director of CSR-in-Action, emphasised the significance of the occasion in her opening remarks for the webinar. "We acknowledge that all stakeholders, especially businesses, are traversing uncharted territory with the PIA, and their capacity to do so successfully is critical to the Act's successful implementation," he stated. This is the foundation of our constructive engagement method, which includes this event.
He mentioned the Ford Foundation-funded research by CSR-in-Action that emphasised important facets of the PIA's execution. These include the significant gender gap in leadership positions, the absence of thorough needs analyses by oil corporations, and the general lack of knowledge about the Host Community Development Trust (HCDT) framework in local communities. The importance of including these groups in the larger story of Nigeria's oil and gas reform is highlighted by this important study.
Additional panellists at the event included Dayo Okusami, a partner at Templars; Akinbambo Ibidapo-Obe, general manager and head of commercial at Oando Energy Resources; Glory Alexander Thomas, secretary management of the Ibeno HCDT; and Eugenia Onyiriuka, chairperson of the Assa North HCDT board of trustees. These executives provided insightful commentary on the implementation of PIA is reshaping Nigeria’s oil and gas sector, particularly in promoting transparency, inclusivity, and environmental responsibility.
Additionally, Okusami emphasised the importance of openness in the management of the petroleum industry, pointing up that "the last significant law in the oil and gas industry was nearly sixty years old prior to the PIA of 2021." Although the PIA is a step forward, we must concentrate on its practical and long-term implementation. Laws are not flawless. Time, careful execution, and patience are required for the PIA.
Glory Alexander Thomas also emphasised the significance of community consultation, saying that “projects without diligent consultation with the host communities tend to lead to failure.” Mrs. Eugenia Onyiriuka reflected this opinion when she said, "The PIA has changed a lot of things, including how women are involved in community affairs."
As stated by Akinbambo Ibidapo-Obe, "The PIA offers a special opportunity for HCDT to empower women and promote women-owned businesses as key service providers to the industry.
At Oando, we are intentional about expanding our supply chain to include more women-owned businesses, ensuring they play a significant role in driving the sector forward."
Meka Olowola highlighted CSR-in-Action's leadership position in sustainability reporting in her closing remarks, highlighting the organization's innovative effort in creating the first sustainability report for an oil and gas industry leader that complies with IFRS S1 and S2.
