The petroleum industry is widely regarded as one of the most polluting industries globally. In Nigeria, it is notorious for degrading the environment in the Niger Delta. This has led to criticism of the inefficient legal framework, which fails to hold multinational oil companies accountable for the negative impact of their operations on host communities and the natural environment. Consequently, the calls for reform culminated in the establishment of the Petroleum Industry Act, 2021. The Act is credited with restructuring the industry’s governance, legal, and financial framework, ushering in a new petroleum industry regime. It is hoped that this legislation is well-positioned to address inefficiencies that prior industry legislation failed to address, including the need to hold operators accountable for decades of environmental degradation that also led to the loss of traditional livelihoods in host communities. With the enactment of the Petroleum Industry Act, 2021, the question arises whether the current petroleum industry regime is robust enough to address the environmental harms that have persisted since the industry’s inception. The article concludes that, although the Act mandates corporate social responsibility and covers remediation for future harms, these measures fall short of adequately addressing past environmental pollution and thus fail to address historical ecological justice issues. It therefore advocates leveraging the PIA to hypothecate funds for the cleanup of the Niger Delta, thereby enabling sustainable petroleum operations that are responsive to environmental protection.
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