…Enforce-ability to energy justice and security is a key issue and recommendations are needed by government in terms of implementation and practice.
-Felix Douglas
Foremost energy think tank Centre for Petroleum Information (CPI) held its Oil and Gas Law Forum with the theme: Energy Justice, Energy Security, and PIA 2021 recently to discuss issues pertaining to the topic.
The issue of energy justice and security cannot be over emphasized since the existing Petroleum Industry Act (PIA) is believed to address gray areas with regards to the energy sector.
Presenting a paper at the Oil and Gas Law Forum, titled Energy Security and PIA 2021, Dr. Ngozi Ole, Director, Alliance Law Firm posited that in Nigeria, oil and gas have become central to energy supply and economy stability since 1956 discovery making the country Africa’s largest oil producer.
However, despite producing 1.6 million barrels as of April 2025 and using oil prices to benchmark the national budget, energy access for citizens remains limited.
Dr. Ole was of the view that the PIA was enacted to address needed growth in the Nigerian oil and gas sector; it advances energy security through sector reform.
According to International Energy Agency (IEA) energy security refers to reliable and affordable access to resources that power household, industries and national development. It involves ensuring that especially electricity and petroleum products are consistently available without interruption and fair prices that support economic stability.
Speaking at the Forum, Sola Adepetun, Partners, Dentons Acas-Law, submitted that issues around energy justice and security are germane that need to be discussed continuously with number of gaps since the PIA was passed. There’s need for periodic review of all laws and legislators should focus on how to accommodate current issues in the energy space.
There are keywords which are indicative of where should be addressed or put pressure on government and the National Assembly.
Adepetun was of the view that practitioners and operators do emphasise on accessibility, consistency, resource control, sustainability, security, energy justice, energy poverty and distributive justice. “These buzzwords are all the things that we need to keep on identifying and singling out to see how best we can cover any gaps that exist.”
Resource control and unequal access are part of energy justice and security. There is need to strike a balance between energy security and environmental stability.
Energy is wider than what PIA provides. There are questions to be answered. The entire discussion is unfolding about transition and clean and net zero emissions.
“Today the Western world talks about how everybody should reach net zero targets. There’s a complete turnaround from the same countries talking about drilling.”
Nigeria should have its own policies and chart its direction as to what is best for her and the people what is sustainable and ensure that it is fairly distributed.
Adepetun added that the country has vast resources, yet the impact is not felt.
“How can we be so wealthy yet we are so poor? It does not add up. Effective leadership should tackle the situation which is the broader issue.
We need to get it right at this point whether in terms of renewable energy with sunlight or solar which is in abundance that God has blessed the country with. If we don’t try and channel these resources to the better use of the people, then we are going to have high tariffs.”
Reacting to energy justice and security, Folasade Akinmusire, Group Company Secretary of Nest Oil Limited, agreed with respect to fiscal policy that has been provided to guide energy security and justice within the Nigerian landscape.
For utmost importance is the aspect of enforcement. The overreaching responsibility of government in the discourse is governance, policy formation with a robust policy formation framework within the Nigerian landscape to elevate from poverty.
Akinmusire said achieving energy security and justice, government has responsibility in terms of enforcing existing regulations that exist. It’s important for government to focus on fair access to energy and not streamline it based on resource in terms of wealthy class.
The government has responsibility to focus at the implementation of policies and practices within the industry. Taking a look at energy consumption, grading of electricity in terms of commerciality, government needs to intervene and make sure every individual has access to security.
The choice of electricity usage any time of the day either to conserve it based on resources as an individual should be the absolute right and discretion of every Nigerian because it’s of paramount importance to get governance right.
Government needs to focus on enforceability, Environmental Sustainability and Governance (ESG) in addressing issues relating to energy production consumption, they contribute greatly to sustainability and social development.
In terms of policy permission by aligning and implementation to social global sustainable development goals, balancing economic growth and environmental protection are also to be done by the government. These are done through regulatory authorities to ensure interests of the average Nigerian are protected, Akinmusire stated.
Value creation leads to an enabling environment for infrastructure and ensuring growth and development of assets.
Akinmusire pointed out that energy efficiency promoting measures to reduce consumption where possible with lower tariffs can be achieved through town hall meetings and public involvement is essential for government to listen to people. This is how to know where the people are negatively impacted arising from energy issues and tariffs.
With respect to PIA, the government has brought a lot in terms of policy formation, but focusing on enforceability remains a key issue and recommendation that needs to go to government in terms of implementation and practice guidance within Nigerian landscape.
For Sope Falana, Senior Associate at Jackson Etti & Edu, the heart of every commercial right, there are some dynamics that are involved.
Falana believed that the PIA was enacted to address issues in order that submit of social rights are introduced to influence commercial activities.
Falana said establishment of environmental remediation fund gives provisions that set up detection and response agency.
“It’s important that on energy security, there are number of provisions on crude and domestic gas supply obligations. But the gap is on the distributive justice end. What the distributive justice requires is basically energy access and inclusion.”
But there is still gap in terms of access to clean and affordable energy in Nigeria. In terms of rural and urban disparity, the Rural Electrification Agency (REA) has done a lot of work in that regard. Though it still has a long way to go in order to determine what cause that will give the nation access.
Beyond every other thing, enforcement is key. There has to be enforcement in energy access, rural electrification, ensuring that the energy security provisions that are in PIA are operationalised and come to fruition.
Engr. Oladele, Chairman CPI Board of Governors reacted on payment of Oil Country Tubular Goods (OCTG) in US dollars, how does the government expects operators to be willing to sell in naira under DSO for gas or oil?
This is a major issue that’s not been addressed and unlikely to work. Except there are guarantees that those operators who are either on the refining or exploration and production (E&P) space, guarantee that the dollars to continue to operate and produce is available.
Lending his voice on the subject matter, Chamberlain Oyibo, former Chairman of CPI said PIA is good for the host communities due to its provisions. But gas production and operations are not clear especially in Liquefied Natural Gas (LNG).
Although Bonny LNG is involved in activities, the gas is also coming from other places, how does the host community fund affect those gas producing areas? This has not been handled or tackled.
On his part, Victor Eromosele, ED CPI, asked if there is anything like true energy justice whereby no one is left out. Can we all board the bus? Are there many people in the bus stop?
Continuing he said for those who don’t have access to electricity, they are not even in the bus. But those in the bus are being ripped off with high tariffs; the bus is not even getting to the next bus stop, let alone getting into the promised land. How do we reconcile all these? This is part of energy justice.
He spoke on industry practitioners concern on guarantees. Those who can give guarantees have the power to stabilize exchange rate. The exchange rate should be stabilized because it is high at 1600 and the naira can be strengthened. Once it is strengthened, DSO provisions will work properly as it was intended.
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