AN ANALYSIS OF THE CHALLENGES TO SUSTAINABLE DEVELOPMENT IN HOST-COMMUNITIES IN NIGERIA UNDER THE PETROLEUM INDUSTRY ACT, 2021

Abstract

Environmental degradation and elevated rates of poverty in the Niger Delta Region have been attributed to the activities of multinational oil and gas companies. The petroleum laws in Nigeria have provisions that forbid oil companies from contaminating the environment while conducting business. Host communities have found it difficult to challenge the statutory provisions that hold oil companies accountable for environmental preservation. The Petroleum Industry Act of 2021 was passed in part to allay the host community's misgivings by establishing the institutional framework for the execution of community development projects and initiatives that firmly establish sustainable environment and economic prosperity. The paper analyses the challenges to the community development initiatives. The paper found that despite the significant resources invested in the creation of numerous development agencies over the years, the initiatives are inevitably impacted by lack of transparency which breeds conflicts. The paper suggests modifying the regulatory framework to suit specific projects focused on this goal.