Submit your papers Submit Now
International Peer-Reviewed Journal
For Enquiries: editor@iiardjournals.org
📄 Download Paper

Oil and Gas Governance in the Nigerian Petroleum Industry: Imbibing the Good Governance Concept

Kingsley Lemeah Peekate & Nuleera Ambrose Duson

Abstract

This study appraised the governance structure in Nigeria petroleum industry, and as contained in the recent enacted PIA 2021 which is now the principal legal instrument as far as Nigeria’s petroleum industry is concerned. The challenges faced by regulators of the petroleum industry, being integral part of the system, are highlighted. It is observed that in seeking to proffer solution to tackle the problems facing Nigeria’s ailing petroleum industry the Norwegian model was resorted to. The Norwegian model consists of separation of roles and responsibilities into commercial, policy and regulatory. The doctrinal research methodology was adopted. The Norwegian model and governance of the international petroleum market was appraised. The discourse was tailored along the concept of good governance; the legal mandate of regulators of the Nigerian petroleum industry; oil and gas governance in the international community; challenges of oil and gas governance in Nigeria; and guidelines for good governance in the oil and gas industry. Against this backdrop, the study recommends that the Norwegian model may not be the best for every ailing industry and adoption of the Guidelines for Good Governance in Emerging Oil and Gas producers 2016 is proposed as the likely solutions that may aid in improving Nigeria petroleum industry.

Keywords

Oil and Gas Governance Petroleum Industry Imbibing

References

Y. Omorogbe, Oil and Gas Law in Nigeria (Malthouse Press Ltd. 2001) 97. S. C. Dike, Energy Security: The case of Nigeria and Lessons from Brazil Norway and the UK (Port Harcourt: Pearl Publishers 2015) 32. UNESCO, Concept of Governance Bureau of International Education <https://www.ibe.unesco.org/en/geqaf/technical-notes/concept-governance....> accessed 8 Nov. 2019. D. Gberevbie and others, 'Corruption and Cost of Governance in Nigeria' in A. S. Akpotor and others (ed), Cost of Governance in Nigeria: An Evaluative Analysis (Ekpoma: Ambrose Alli University 2007) 405. The World Bank in Governance: The World Bank Experience, cited in Governance Barometer: Policy Guidelines for Good Governance, Understanding the Concept of Governance <https://www.gdrc.org/u-gov/gover...> accessed 8 Nov. 2019. Hiroko Tabuchi, Government Loophole Gave Oil Companies 18 Billion Windfall (The New York Times: 24 Oct. 2019) https://www.nytimes.com/2019/10/24/climate/oil-lost-revenue-guo.html accessed 12 Nov. 2019. L. Atsegbua, Oil and Gas Law in Nigeria: Theory and Practice (Fifers Lane Publishers 2012) 54. World Poverty Blog, Extreme poverty in Nigeria may increase by 2030 https://worldpoverty.io/blog/index.php?r=12 accessed 12 Nov. 2019; Bukola Adebayo, Nigeria overtakes India in extreme poverty ranking (CNN 26 June 2018) <https://edition-m.cnn.com/2018/06/26/africa/nigeria-overtakes-india-ex...> accessed 12 Nov. 2019. Bukola Adebayo, Nigeria overtakes India in extreme poverty ranking (CNN 26 June 2018) <https://edition-m.cnn.com/2018/06/26/africa/nigeria-overtakes-india-ex...> accessed 12 Nov. 2019. (n7) 60. E. Allison and B. Mandler, U.S. Regulation of Oil and Gas Operations <https://www.americangeosciences.org/geoscience-currents/us-regulation...> accessed 12 November 2019. NNPC Act 1977, as amended, ss. 1(1), 23(2). Ibid, ss. 5, 6. NNPC Act 1977, as amended, s 5(1) (h) Udora Orizu, 'Kyari, 'Why Nigeria's Refineries Are Not Working, Says Rehabilitation Underway' THISDAY (Lagos, 11 May 2022), www.thisdaylive.com accessed 8 July 2022 Okechukwu Nnodim, 'Nigeria Oil Reserves Hit 37.046 Billion Barrels, Gas, 208.62TCF FG PUNCH (Nigeria, 7 May 2022) https://punchng.com accessed 9 July 2022 Ibid. Okechukwu Nnodim, 'Nigeria's Proven Gas Reserves Worth Over $803.4tn-FG PUNCH (Nigeria, 29 April 2022) https://punchng.com accessed 9 July 2022 (n18) NNPC Act 1977, as amended, s. 1(3). M. Thurber and others, The Limits of Institutional Design in Oil Sector Governance: Exporting the "Norwegian Model" (New Orleans: ISA Annual Convention 2010) 11. PIA 2021, s. 59. PIA 2021, s. 3. (n2) 54 (n2) 54-55 V. E. Nnaemeka and E. Nebedum, Policies Enhancing Renewable Energy Development and Implications for Nigeria [2016] (4)(1) Sustainable Energy 7 http://pubs.sciepub.com/rse/4/1/2 (n2) 62 Kingsley Jeremiah, NNPC discovers oil in Northern Nigeria https://m.guardian.ng/news/nnpc-discovers-oil-in-northern-nigeria/; NNPC discovers oil gas in Northern Nigeria, Agency Report <https://www.premuimtimesng.com/regional/nnorth-east/357186-nnpc...>; Chika Amanze-Nwachuku and Chineme Okafor, Nigeria: At Last, NNPC Strikes Crude Oil Up North https://allafrica.com/stories/201910120045.html all accessed 12th November 2019 Rhythm News (93.7) PH, 7.00am, 5th December 2019 B. Mommer, The Governance of International Oil: The Changing Rules of the Game (Oxford Institute for Energy Studies 2000) (n7) 36-37 G. K. Kato, Oil and Gas Law: A Guide for International Practitioners (2nd edn Lambert Academic Publishing 2018) 236 Ibid, 235 Ibid 239 (n2) 63 (n21) 5. Helge Ryggvik, The Norwegian Oil Experience: A toolbox for managing resources? (Oslo: Centre for Technology, Innovation and Culture (TIK Centre) 2010) 17. (n37) 16. (n37) 32, 33, 39, 40. Ibid, 34. (n21) 4. (n21) 17. CFRN 1999, as amended, s. 44(3). PIA 2021, s. 1. Jodi Rosenstein, Oil, Corruption and Conflict in West Africa: The Failure of Governance and Corporate Social Responsibility (Koffi Annan International Peacekeeping and Training Centre KAIPTC Monograph, No.2, October 2005). PIA 2021, s. 240 (1). Ibid, s. 310. Ibid, s. 309. W. Esan, and others, Oil and gas regulation in Nigeria: the Petroleum Industrial Bill 2012 <http://uk.practicallaw.com/cs/Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1247643766611&ssbinary true.> accessed Sunday June 12, 2016 PIA 2021, ss. 2, 66 (1). Ibid, chp 1, pt 3. PIA 2021, chp 1, pt 4. Ibid, s. 52 (1). Ibid, s. 64. Ibid, ss. 71 (3), 77, 86 (1). PIA 2021, s. 102. Ibid, ss. 104, 108. (n1) 59. PIA 2021, s. 115. PIA 2021, chp 4, pt 2, s. 261; & pt 10, s 302. U. Akpata, Review of the Nigeria Oil and Gas Industry (November 2014) http://www.pwc.com/ngaccessed Sunday June 12, 2016