The Petroleum (Drilling and Production) Regulation sets out the requirements and documents to accompany an application for OPL or OML. It also sets out rights and obligations of licenses and lessees.

Strengths – Provides regulations for protecting sacred lands, water and the environment. Mandates accurate record keeping by licensees. Provides process of abandonment of oil wells.

Weaknesses – This legislation lacks appropriate enforcement mechanism, has no clear provisions for penalties and by requiring that information provided by licenses be confidential, it promotes a lack of transparency.

The Petroleum Act is an Act to provide for the exploration of petroleum for the territorial waters and continental shelf of Nigeria and to vest the ownership of/and all onshore and offshore revenue from petroleum resources derivable there from/in the federal government.

Strengths – Provides regulations for safe operations, protection of the environment, and conservation of natural resources.

Weaknesses – Grants all rights to decide to the Minister. No provisions for transparency in grant of oil licenses and leases. Not strong on accountability. Inadequate penalties for offenses.

The following describes the process through which a Bill becomes an Act:
Bill progression at both houses of the National assembly = 1st reading > 2nd reading > Public Hearing > Committee input > 3rd reading and passage > Harmonization of bill by Joint Committees of Senate and House of Representatives > Transmission to President for assent.

Other economic areas Nigeria has ignored as a result of over concentration on crude oil as a result of over concentration on oil and the monetary losses incurred from such behaviour.

Brazil has 16 state owned refineries with over 2mbpd capacity while Nigeria has 4 refineries with combined capacity of 445,000bpd. Over 75% of Brazil’s locally refined products are consumed locally.

An Act to compel every company producing oil and gas in Nigeria to submit preliminary programmes for gas re-injection and detailed plans for implementation of gas re-injection. (28th September, 1979)

Illegal refineries are makeshift individual facilities, used in the processing of stolen crude to get refined petroleum products mainly Diesel and Kerosene. Some argue that illegal refineries are in essence catering to local demand shortfall that mainstream refineries fail to do. The exact volume of stolen crude that goes to illegal refineries daily is unknown, estimates puts it about 10%.

Oil spills refer to leakeages from oil pielines, tanks, badges, vessels and oil theft. Oil spills damege both the sol and pollutes the rivers, rendering farming and fishing activities impractical and causing severe envronmental damages. Oil spills have been attributed to ageing infrastructure, illegal human interference and regulatory negligence on part of oil industry servicing companies and national oil companies.

The Babangida regime in 1988 introduced fuel importation and subsidy payent to stabilize prices during the then proposed six months refineries rehabilitation period.

Gas flaring has been a contentious issue in Nigeria right from the beginning of commercial exploitation of crude oil in the country. The gas that is flared in the oil fields of the Niger Delta is called Associated Gas because it comes out of the earth along with the target crude oil and is separated from the crude so as to make that commodity useful.

The separated gas could be handled in a number of ways:

  • 1. It could be harnessed for use as Liquefied Natural Gas or powering gas turbines to generate electricity
  • 2. It could be re-injected into the earth where it came from
  • 3. It could be vented or flared

Nigeria choses option 3, and as such is the 2nd largest gas flaring country in the world after Russia. 16% of total gas flared globally comes from Nigeria.

(Excerpts from presentation by Inemo Bassey – Gas Flaring: Assaulting Communities, Jeopardizing the world)

Agriculture contributes about 44% to the GDP and 34% to the GDP growth. Over the years, Nigeria has exported less agricultural produce and is now a huge net importer of agricultural products.

Agricultural produce trade:
1961 Exports ($2.4bn)>Imports ($63m)
1975 Imports ($487m)>Exports ($434m)

Sources: Ministry of Agriculture Food and Agriculture Organization of the United Nations

According to the Ministry of Agriculture, Nigeria has a population of about 80 million youths, where about 75% of them are under-employed. Agriculture for one needs, to be made more attractive and viable for youths to engage, in order to reduce unemployment and food insecurity. $11bn can be invested into programs that have the ability to drive economic development, provide necessities and improve standard of living.

The coal industry gave rise to the first set of industries in Nigeria and provided all the energy requirements for these industries up to the ‘late 1960’s. these include the Marines, the Nigerian Railways, National Electric Power Authority (now Power Holding Company of Nigeria PHCN) and the Nigeria Cement Company (Nigercem, Nkalagu). Coal was used to generate electricity through coal-fired power stations. All these are in addition to use of coal for domestic cooking and other industrial applications. Significant commercial quantities are evident in a belt spanning Enugu, Benue, Kogi, Nassarawa, and Gombe states.

Bitumen is a semi solid form of petroleum derived by natural or refinery processes. It is produced by removing the lighter fractions (such as liquid petroleum gas, petrol and diesel) from heavy crude oil during the refining process. As such, it is correctly known as refined bitumen. The primary use of bitumen is in road construction. Most bitumen used for road construction in Nigeria is imported.

The Agricultural transformation Agenda (ATA – Nigeria) aims to revive the agricultural sector in Nigeria. According to the Minister of Agriculture, the vision is to develop Nigeria’s agricultural sector “to achieve a hunger free Nigeria through an agricultural sector that drives income growth, achieves food security, generates employments and transforms Nigeria into a leading player in global food markets”.

Source: Mid Term Report 2013, Ministry of Agriculture