Towards a functional petroleum industry in Nigeria :a critical analysis of Nigeria's petroleum industry reform

Abstract

This thesis seeks to enquire into the role of law in the reform programme for the Nigerian petroleum industry (NPI), in order to determine the extent to which it can be utilised to actualise a functional petroleum industry. The thesis will seek to test the hypothesis that an effectively managed petroleum industry will be efficiently regulated, have a significant local content, and will invariably be dependent on how sustainable and efficient petroleum revenues are distributed. My significant contribution to knowledge is that Nigeria should seek to develop local content and industry regulation, and aim to effectively distribute petroleum revenues, by pursuing industry reforms as an integrated whole. To that extent, it would require a coherent legal framework, and the development of policies that recognise the interconnectedness and interdependency of several factors in the petroleum industry. To that extent, a suitable and strategic legal architecture should be erected in Nigeria: one that will give room for co-operation without stifling independence and innovation. This thesis also notes that the development of a viable National oil company is imperative and should be anchored around which other industry reforms should revolve. Such a firm should however be privatised in a manner that guarantees its performance and promotes good corporate governance, whilst limiting avenues for external interference. It advocates that Nigeria should seek a national oil company model that is deliberately tailored to restrain ‘external interference’ in the daily workings of the NOC. Finally, this thesis argues that for an efficient regulation and management of the industry will require the active participation of all actors in the industry, and that the government should not have prerogative over the industry, especially in the light of past failures to effectively turn the industry around. There should thus be a deliberate effort to restrain government interference in the NOC, empower citizens in regulation and encourage the development of indigenous petroleum exploration and production companies (PEPCs), while in utilization of petroleum resources; there should be direct citizenship participation.