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Petroleum Industry Act, Section 257 Factsheet

The Petroleum Industry Act was passed in 2021, following more than two decades of legislative efforts to modernise Nigeria’s petroleum sector legislation. A significant element of the PIA focuses on community participation and benefit sharing within the sector.

While the Act provides that 3% of oil companies’ operational costs will be spent on community development, other provisions may provoke dissatisfaction and even crises.

This factsheet highlights disputed provisions under Section 257 of the PIA.