From Litigation to Arbitration? An Empirical Analysis of Dispute Resolution Trends in Nigeria’s Oil and Gas Sector Post-Petroleum Industry Act (PIA) 2021

Abstract

The Petroleum Industry Act (PIA) 2021 represents the most comprehensive reform of Nigeria's oil and gas sector in over five decades, introducing a new regulatory and commercial architecture. A critical, yet under-examined, aspect of this reform is its potential impact on dispute resolution mechanisms. This paper conducts an empirical analysis to investigate whether the PIA is shifting dispute resolution trends from traditional litigation and international arbitration towards the Act's novel specialized tribunals and other domestic avenues. Through a mixed-methods approach—combining doctrinal analysis of the PIA's legal provisions, a review of emerging case law from the new tribunals, and qualitative data from surveys and interviews with legal practitioners and industry executives—this research maps the evolving dispute resolution landscape. Preliminary findings indicate a complex and transitional picture: while international arbitration remains the preferred mechanism for high-value commercial disputes between investors and the state, the new tribunals are gaining traction for regulatory appeals. However, a lack of published decisions, capacity concerns, and lingering distrust in domestic institutions continue to challenge the PIA’s objective of localized dispute resolution. The study concludes that the PIA has created a multi-tiered, hybrid system rather than a decisive shift, and its ultimate success hinges on building trust through the demonstrated efficiency, expertise, and independence of the new judicial bodies.