Stakeholders, experts and policymakers have called for urgent reforms in Nigeria’s oil and gas industry to enhance the nation’s economic growth.
They spoke on Thursday, January 9, 2025, in Abuja at a one-day symposium organised by Classmasters Limited, themed “Nigeria Petroleum Industry: The Way Forward”.
The managing director of Classmasters Limited, publishers of Development Agenda Magazine, Mr. Paddy Ezeala, emphasised the need for collaboration and innovative solutions to tackle the industry’s challenges.
“We aim to ensure that all stakeholders understand the complexities of this industry and collaboratively create a path forward that meets global standards.
“This industry is vital to our economy and national identity. For decades, we have failed to fully harness its potential. There is an urgent need for reforms and a unified strategy,” he stated.
A major topic of discussion was the Petroleum Industry Act (PIA). Attendees advocated for amendments to address the diverse interests of stakeholders, including environmentalists, host communities, local operators, and international firms.
“No document is flawless, but this symposium aims to generate actionable recommendations to drive meaningful progress,” he noted.
He highlighted the distinctiveness of the event, pointing out its strong support from key industry players, including NNPC Limited (NNPCL).
“Unlike previous gatherings, the outcomes of this symposium will not be ignored. As an environmentalist, I strongly advocate for mandatory environmental responsibility from all oil companies,” he added.
Participants expressed optimism about producing a comprehensive and actionable document to address critical issues such as energy transition, environmental sustainability, and socioeconomic challenges in the oil and gas industry.
Also speaking, the Executive Director of the Ubuntu Centre for Africa Peacebuilding and Development (UCAP), Dr. Oshita Oshita, highlighted the growing security challenges in oil-producing areas.
“The Niger Delta faces evolving security threats that are deeply tied to the dynamics of oil production. There are many underlying factors that do not make it to the public domain but significantly impact the security landscape,” he remarked.
Oshita also underscored the link between Nigeria’s dependence on oil, often referred to as the “Dutch disease,” and the neglect of oil-bearing communities.
“The Niger Delta, despite being the source of the country’s oil wealth, remains one of the most underdeveloped areas. The people of this region see little to no benefit from the resources extracted from their land, fueling resentment and security crises. As long as these grievances persist, the challenges will remain.”
He argued that implementing the Petroleum Industry Act (PIA) presents a unique opportunity to address these issues.
“The PIA offers several opportunities that can be leveraged to transform oil-bearing communities and surrounding businesses. While the Act has its challenges, its potential to create a more equitable and sustainable industry cannot be overstated,” he said.
Oshita further revealed that there are underlying factors in the oil production process that are not visible to the public, stating that these factors significantly impact the security situation in the region.
His words: “One of our challenges, as pointed out in my paper, is that we have ignored the very important elements in the areas where the oil is produced. That’s why you hear that the Niger Delta is one of the most underdeveloped areas, even though that is where the oil money comes from. The whole country depends on that oil, but the people where that oil is found don’t get any benefit.
“And that is why security challenges will continue because the people must fight for their land.
“However, I have proposed that in spite of the challenges that we have around, the Petroleum Industry Act has a lot of opportunities that can be leveraged.
“Although many people don’t talk about it, I see that if the country can focus on getting the benefits of the Petroleum Industry Act, Nigeria may be heading the right way in terms of how the communities and the oil-bearing communities and surrounding businesses are growing. I believe that we can be in control of the Petroleum Industry if we do follow the letters and content of the Petroleum Industry Act.”
Ezeala noted that Nigeria’s economy has revolved around oil for over 70 years, yet the country has not fully harnessed its benefits.
He stressed the need for knowledge and awareness about the industry, particularly in the era of energy transition and insecurity challenges.
Ezeala said: “The petroleum industry is central to our economy and even central to our nationhood. It’s something that we all should know about. As a matter of fact, the whole economy of Nigeria should have been revolving around oil for the past 70 years.
“So, there is need for knowledge. There is need for us to know how the industry works. Now, we are talking about energy transition. How are we transiting? How are we moving? People should be aware. People should be environmentally conscious.
“People should know how other factors around us, like insecurity, is affecting the production of oil. We cannot even meet our quota as a member of the Organization of the Petroleum Exporting Countries (OPEC).”
He said the gathering provides an opportunity for experts to discuss the industry’s social, economic, and environmental issues.
In a presentation, Prof. Kayode Soremekun of the Dept of Political Science, Lagos State University, stated that oil politics is at local and international levels. He said there are forces that control how the industry operates. He said this is not by accident.
He also said part of the problem with the sector is that Nigerians glorify comsumption at the expense of productivity. He said the oil industry is very external to Nigeria.
“Globally the control was in the hands of the UK and France, but lately in the hands of the USA,” he said, adding that the history of oil is truly the history of imperialism.
He added that there is no reason why most African nations have been able to make a success of it.
Prof. Edem A. Eniang of the Dept. of Forestry & Wildlife Management, University of Uyo, Akwa Ibom State, submitted that oil despoils the environment, but the communities are also deeply involved in the despoliation. So, the regulators need to up their response.
His words: “The region is faced with oil bunkering activities, gas flaring, illegal Refining activities, and displacement of people. There is surfeit of environmental laws, but these are not being implemented.
“We should stop working in silos. There must be involvement of all involved, including government, communities and oil firms.
“Oil companies need to be involved in remediation across the Delta, not only in Ogoniland. Oil companies need to put aside funds to operationise the national parks in Bayelsa, Rivers and Akwa Ibom states.”
