An Evalution Of The Ownership And Control Of Oil And Gas In Nigeria: A Comparative Analysis With Other Jurisdictions

ABSTRACT

This paper evaluates the ownership and control of oil and gas in Nigeria and the experiences with other jurisdictions. As it is a common knowledge that the bulk of Nigeria revenue is derived from petroleum produce for many years now up until the recent drop in the price of petroleum due to the COVID-19 pandemic. With this knowledge, this paper intends to reveal the intendment of the legislature by vesting ownership and control of oil and gas to be within the purview of the State. Section 44(3) of the Constitution of Federal Republic of Nigeria 19991 provides that “the entire property in and control of all minerals oils, in under or upon any lands in Nigeria, is and shall be vested in the state…”2 the exclusive power of the state to own, control and regulate the activities of minerals, mineral oils, and its product is firmly affirmed and vested by the constitution of the Federal Republic of Nigeria s.44(3).3 What could be the reason why the constitutions and other enactments vest ownership and control of the these mineral resources in the hands of two of the three critical stakeholders of the oil industry, the Federal Government and the multinational oil companies (MOCs) leaving out the communities who live on the land where actual exploration and production takes place? The Federal Government and the Multinational Companies consolidated their hold on the industry through centralized governance that principally targets the revenue accruing from the industry. Centralization of oil and gas governance aims at giving every citizen and community in the federation a sense of belonging based on equity and fairness in the distribution of the benefits of the oil industry for development. This paper also, analysis some theories of ownership of mineral resources in other jurisdictions and concludes by advocating for reforms. It recommends the adoption of what is obtainable in other jurisdictions like Canada and United State of American. These two countries recognise the private ownership of oil and gas it is to this effect that this research work based its suggestion. Whereby citizens of Nigeria will be allow to participate in the control of oil and gas in Nigeria. The methodology employ in this work is doctrinal approach the reason being that the writer shall be analysing statutes, textbooks, journal and article of prominent authors and other relevant materials related to the research topic.