Nigerias total petroleum refining capacity is 445,000 barrels 70,700 m 3 per day, however, only 240,000 barrels 38,000 m 3 per day was allotted during the 1990s. Political economy of the petroleum sector in nigeria. The new petroleum industry bill and taxation of petroleum. The most productive region of the nation is the coastal niger delta basin in the niger delta or southsouth region which encompasses 78 of the 159 oil fields. Retained a create efficient and effective governing institutions with clear and separate roles for the petroleum industry. Alex gboyega is professor at the university of ibadan. The petroleum industry bill 2012 is a 223 page document with 362 sections and 5 schedules. An analysis of the nigeria petroleum industry bill2012. To do this efficiently, we employ the maxim quic quid plantatur solo, solo cedit, and a critical examination of the various legislations affecting the oil industry and land use in nigeria. Petroleum production and export play a dominant role in nigerias economy and account for about. Ownership of petroleum resources the entire property and control of all petroleum in, under or upon any lands within nigeria, its territorial waters, or which forms part of its continental shelf and the exclusive economic zone, is vested in the. Assessment of accounting procedures in the oil and gas. The advent of the oil industry can be traced back to 1908, when a german entity, the.
The petroleum industry in nigeria, africa is the largest industry and main generator of gdp in the continents most populous nation. Nigerian oil and gas industry and make it more relevant to the sustainable development of the nigerian state report by akin akinsipe 08023173582 the nigerian economy and the relevance of the petroleum industry nigeria. Oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of. Nigeria economy, one could conclude without missing words, that it is an oilpush economy, at present labaran, 2011. Petroleum industry, which deals with oil exploration, prospecting, development and production epdp. Natural gas that is associated with oil production is mostly flared but the development of regional pipelines, the expansion of liquefied natural gas lng infrastructure and policies to ban gas flaring are expected to accelerate growth in the sector, both. The history of oil exploration in nigeria dates back to 1903 when nigerian bitumen. If the house of representatives concurs, it could be signed into law. The impact of petroleum on economic growth in nigeria. Mar 07, 20 k attain such other objectives to promote a viable and sustainable petroleum industry in nigeria.
This study examines the history, current strategies and future prospects of the. The petroleum industry bill 2012 pib seeks to ensure that the management and allocation of petroleum resources in nigeria and their derivatives are conducted in accordance with the principles of good governance, transparency and sustainable development in nigeria. This part of the blog seeks to summarise the bill along its 9 parts. Also sensitive polit ically is the refined product pricing policy, especial ly. But during 202017, the oil production in the region declined due to combination factors, including low and cyclic oil price environment, political instability, terrorist attacks on the infrastructure, among others. Includes business units of exploration and production, gas development, refining, distribution, petrochemicals, engineering, and commercial investments. Nigeria has a robust petrochemicals industry based on its substantial refining capacity and natural gas resources. The oil and gas industry is a key part of the economic growth in nigeria, the industry is very competitive and a bit risky, and the room for new entrant to the market is very tough and exploiting as the industry is a bit corrupt obtaining a license is very hard as well as being a major player in the industry is very tough, because nnpc is the. Tina soreide is an economist and senior researcher at the chr. Positive and negative contribution of petroleum to. As an oilexporting third world nation, nige ria s economic development has witnessed trials and tribulations, as the nations for tunes have risen and fallen in the stormy seas of the international oil market. The petroleum industry governance bill pigb was passed by the senate on 25 may 2017.
The history of nigeria can be traced to prehistoric settlers nigerians living in the area as early as 1100 bc. Abuja has been the capital of nigeria since december 12, 1991. People without jobs or food in their stomachs can be moved to desperate acts. May 25, 2017 nigerian senate passes petroleum industry governance bill the bill has gone through 5 sessions of the national assembly, beginning from the 4th assembly which was inaugurated in 1999 under. The positive and negative contribution of petroleum to nigerian economy can be quite obvious. Previous studies on the nigeria economy in the last decade show that the petroleum industry. The crude oil production in nigeria is estimated to witness a decline of approximately 7. The fifth section will highlight the recent developments in the oil and gas industry, such as the petroleum industry bill and the local content act. Crude oil was first discovered in commercial quantity in oloibiri in presentday bayelsa state in 1956 when shell darcy drilled the first.
The industry needs to put their money where their mouth is if it expects to end communal violence. The nigerian oil and gas industry and it was ni multisim 10 pdf recommissioned in year 2007. Hence, the econometric analysis of the impact of the oil and gas sector on the nigeria economy. The bill is the first in a series of long awaited petroleum industry laws designed to reform the nigerian oil and gas industry. History of the nigerian petroleum industry oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration. Geographical, historical and political profiles of nigeria 1. The petroleum industry and air pollution according to cedigaz 2000, nigeria is by far the number one flarer of natural gas on the planet both absolutely and proportionally about 46 per cent of africas total and the most gas flared per tonne of oil produced.
Darke in 1859 to 1956 when crude oil was first discovered in commercial quantity at. Overview of the nigerian oil and gas industry natural. The main focus of our consideration is the question of who owns what and gets what in the nigeria petroleum industry. Nigerian senate passes petroleum industry governance bill. Economic implications of petroleum policies in nigeria.
The paper traces the origin of oil exploration and exploitation from titusville in pennsylvania. Also the history of successive revenue allocation arrangements in nigeria has. The petrochemical industry is focussed around the three centres of kaduna, warri and eleme. Status of the nigerian oil and gas industry the pib. The relatively slow pace of nigerias development has often been attributed to the phenomenon of the resource curse whereby the nature of the state as a rentier dilutes accountability for development and political actors are able to manipulate institutions to sustain poor governance. It may be necessary to state that the geopolitics of oil. Geographical, historical and political profiles of nigeria. Ndelta militants say pandef cant speak for the region. Islam reached nigeria through the borno empire between 1068 ad and hausa states around 85 ad during the 11th century, while. The much anticipated petroleum industry bill 2012 the pib was. In addition to oil, nigeria holds the largest natural gas reserves in africa but has limited infrastructure in place to develop the sector.
It is against this background that the nigerian government under the presidency of chief olusegun obasanjo embarked on comprehensive reform of the oil and gas sector having relied heavily on the petroleum act of 1969 and some extant regulations pursuant to the petroleum act of 1969. Overview of the nigerian oil and gas industry free download as powerpoint presentation. Abstract the nigerian petroleum industry has been having major transformations since the discovery of crude oil in nigeria in 1956. Public regulation of the oil and gas industry in nigeria. United states of america where the first all well was drilled by edwin l. Nigeria is the largest oil and gas producer in africa. Nigerias post colonial history is characterized by structural dualism. The sixth part will conclude the analysis, where the inherent weaknesses of the aforementioned laws and regulations will be brought to. Nigerian petroleum industry bill 2012 pdf establishment of the petroleum technical bureau. Major events in the history of the nigerian oil and gas. Petroleum industry in nigeria environmental issues, national environmental legislation and implementation of international environmental law.
Foakinrele overview of the nigerian oil and gas sector. At the same time, nigeria pays a high price for the oil. Global business and economics research journal, 25. A bibliographical reconnaissance history in africa. Nigeria s total petroleum refining capacity is 445,000 barrels 70,700 m 3 per day, however, only 240,000 barrels 38,000 m 3 per day was allotted during the 1990s. Nigerias postcolonial history is characterized by structural dualism. From the early 70s, the petroleum industry has become the dominant sector in the economy. The ministry of petroleum resources regulates the petroleum industry in nigeria. Confirming the fact that nigerias current economic crisis was fuelled by the challenges in the petroleum industry, recent data obtained from the national bureau of statistics, nbs, disclosed. Islam reached nigeria through the borno empire between 1068 ad and hausa states. The discovery was made by shellbp, at the time the sole concessionaire. Beyond economic effects, nigerias environment has been harmed as well.
School of management sciences national open university of nigeria 1416 ahmadu bello way victoria island lagos nigeria. Petroleum industry governance bill 2017 15 republic of nigeria part i objectives retained 1. Nigerian senate passes petroleum industry governance bill the bill has gone through 5 sessions of the national assembly, beginning from the 4th assembly which was inaugurated in. Nigerias petroleum industry bill natural resource governance. Retained b establish a framework for the creation of. The bill is divided into 9 parts, which propose to cover the entire spectrum of the oil and gas industry. These themes include the impact of the oil industry on nigerias workers, environment, and communities within the oil rich niger delta. Until very recently, corruption has been the bane of the nigerian oil industry as. In 2009, petroleum profits tax attracted 85% tax rate on export and 65. Nigeria has a total of 159 oil fields and 1481 wells in operation according to the department of petroleum resources.
Aret adams, a nigerian oil industry analyst and former government adviser, told the ap. Nigeria is a major producer of crude oil, and the importance of this commodity has been highly manifested in the nations economy. Oil and gas production had been hampered in nigeria in the past few years, due. Nigeria is a major oil and gas producer in the africa region, accounting for about 25% of oil as well as gas production in the region. Wabotes ten point agenda for nigerias local content development. Nigerias petroleum industry of the future the guardian. Hopkins called on africanists in 1976 to return to the study of imperial business, both as an extension of european and american business history and. Oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration.
How petroleum sector drove nigeria into economic recession. Mar 27, 2017 nigerias petroleum industry of the future. Subsequently, crude oil production for refineries was reduced further to as little as 75,000 barrels 11,900 m 3 per day during the regime of sanni abacha. So strategic is the petroleum sector to the nigerian economy that crucial aspects of this sec tor such as exploration, production, gas utilisation, conservation, and petroleum policy and legislation are sensitive economic issues. In february 20, the nigerian association of chambers of. Nigeria is a famous country with more than one hundred and forty million population. Most of nigeria s oil fields are small and scattered, and as of. Public regulation of the oil and gas industry in nigeria ggu law. The petroleum industry governance bill kpmg nigeria. After years of delay, the senate on thursday passed the petroleum industry governance bill, inching closer to regulatory and business reforms in the nations oil and gas industry.
The nigeria oil and gas industry has been described as the most dynamic sector of the nigeria economy and the development of oil resources as the most significant sector of the economic in. The nigeria petroleum refining company nprc exploration for crude oil commenced in nigeria in 1937 when shell darcy was granted the sole concessionary rights over the whole territory of the country nigerian national petroleum corporation nnpc. Nov 23, 2014 the petroleum industry in nigeria, africa is the largest industry and main generator of gdp in the continents most populous nation. The petroleum industry bill pib, an omnibus law meant to regulate the entire sphere of the industry and repeal all current existing oil and gas legislation, had struggled to see the light of day despite its. This paper examines the question as to whether crude oil resource is a blessing or curse to nigeria. Numerous ancient african civilizations settled in the region that is today nigeria, such as the kingdom of nri, the benin empire, and the oyo empire. This paper uses a political economy perspective to analyze the governance weaknesses along the petroleum sector value chain and attempts to establish the links between challenges in sector regulation and the following major political and economic attributes. Given that problems of petroleum sector governance are. Overview of the nigerian oil and gas industry natural gas. Petroleum development company of nigeria was awarded the sole concessionary. The study concludes that, if the petroleum industry bill is passed and implemented to the letters, there exists hope for the nigerian nation.
1155 883 466 279 1498 22 1294 1253 104 431 275 1082 38 847 1444 302 1354 385 935 765 487 26 828 863 549 520 1356 96 1607 391 858 1420 118 368 156 845 479