Impact of Petroleum Industry Act (PIA) on Production Sharing Contract (PSC) Cost Recovery Analysis in Oil and Gas Management Budgeting in Niger Delta, Nigeria

The Petroleum Industry Act (PIA) which was passed in 2021 is a historic change to the oil and gas sector in Nigeria with profound effects on fiscal structures, governance and operations in the industry. This paper discuss the effect of the PIA on Production Sharing Contract (PSC) cost recovery analysis, especially under the management budgeting of oil and gas in the Niger Delta. The study examines the impact of reforms in fiscal aspects, governance frameworks, and transparency conditions that PIA has brought on the cost recovery process, investment choices, and revenue sharing between the Nigerian government and international oil companies (IOCs). The mixed-methods design was used, which included documentary analysis of the PIA and current PSC frameworks, and secondary data on trends in cost recovery before and after the implementation of the Act. The quantitative analysis was conducted on ground of descriptive statistics, regression analysis as well as paired sample t-tests to determine significant differences in cost recovery ratios, budget allocations and government take based on the pre and post-PIA regimes. The findings indicate that the recoverable cost margins are statistically significant (p