The social licence to operate in the Nigerian Oil and Gas Industry: A new approach to governance under the Petroleum Industry Act 2021
Book chapter
Ekhator, E. 2026. The social licence to operate in the Nigerian Oil and Gas Industry: A new approach to governance under the Petroleum Industry Act 2021. in: Pereira, R., McConnell, L. and Savaresi, A. (ed.) Business, Human Rights and Natural Resource Governance: Accountability for a Just Transition Hart Publishing.
| Authors | Ekhator, E. |
|---|---|
| Editors | Pereira, R., McConnell, L. and Savaresi, A. |
| Abstract | In 2021, the erstwhile primary law regulating the oil and gas industry in Nigeria – the Petroleum Act 1969 – was abrogated, and a new law – the Petroleum Industry Act (PIA) – was enacted. A major development enshrined in the PIA is the creation of the Host Communities Development Trust (HCDT). The HCDT is mandatory and is premised on fostering sustainable prosperity in the petroleum host communities in Nigeria. Furthermore, this chapter argues that social license to operate (SLO) is one of the strategies that has been utilised by oil producing communities and other stakeholders to improve access to justice and improve the plight of oil producing communities in Nigeria thereby promoting accountability and transparency in the sector. This chapter suggests that the HCDT has the potential to improve the ability of companies to achieve the requisite SLO from host communities in the Niger Delta if successfully implemented. However, the provisions of the PIA on host communities suffer from some inadequacies and this chapter proffers some recommendations to enhance the potential of the PIA in this regard. |
| Keywords | Extractive Industry; Natural Resource Governance; Nigeria; Social License to Operate; Host Communities |
| Year | 2026 |
| Book title | Business, Human Rights and Natural Resource Governance: Accountability for a Just Transition |
| Publisher | Hart Publishing |
| ISBN | 9781509970841 |
| Web address (URL) | https://www.bloomsbury.com/uk/business-human-rights-and-natural-resource-governance-9781509970841/ |
| File | File Access Level Restricted |
| Output status | In press |
| Publication dates | |
| Online | 19 Feb 2026 |
| Publication process dates | |
| Accepted | 16 Sep 2025 |
| Deposited | 24 Oct 2025 |
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