Former National President of the Nigerian Bar Association (NBA), Dr Olisa Agbakoba (SAN), has called on the Federal Government to review laws guiding exploration of oil and gas in the country.
He also called on President Bola Ahmed Tinubu to relinquish his hold on the office of the Minister of Petroleum and appoint a substantive minister to oversee necessary reforms urgently needed to transform the sector.
The senior lawyer, who spoke with newsmen in his Lagos office, regretted that the country has not been maximising potentials in the oil industry because of its “contract oil” model, which allows oil and gas governance in Nigeria, primarily implemented by Joint Ventures (JVs) and Production Sharing Contracts (PSCs) at the detriment of Nigerians and the Federal Government.
Agbakoba, while advocating the “development oil” approach that views oil and gas not just as commodities, but as strategic assets for driving comprehensive national development, said “this approach aligns the oil and gas sector with broader national interests and development goals.
The human rights lawyer, who also disclosed that the current system of JVs and PSCs, which was initially justified by a lack of funds in 1960s, but now violates the inherent rights of Nigerians over their natural resources, said: “By adopting a “development oil” approach, Nigeria can transform its massive natural resources into an engine of sustainable growth, infrastructural development, and improved living standards for its citizens.
“If the country adopts a “development oil” approach, like Saudi Arabia, Libya, Malaysia and Norway, it can reclaim control over its vital oil and gas sector and transform it into a powerful engine for national development.
“The current exit of IOCs presents both a challenge and an opportunity for new Nigerian actors in the oil and gas sector. In collaboration with the Federal Government, these actors must rise to the occasion and build a new strategy for oil and gas exploration based on development oil principles.”
“By aligning the oil and gas sector with broader national interests and constitutional obligations, Nigeria can create a more diversified, resilient, and prosperous economy that truly benefits all its citizens.
“This approach not only promises economic growth but also reaffirms Nigeria’s sovereignty over its natural resources, as well as ensuring that they are managed for the welfare and security of all Nigerians as mandated by the Constitution.”
The senior advocate, who threatened to take legal action against the Federal Government if it refuses to review the oil and gas law, also urged the repeal of the Petroleum Industry Act (PIA), saying that it was fundamentally flawed with errors.
He said: “The PIA should be repealed immediately because it creates too many agencies; it creates the upstream, it creates the downstream, and it creates over five to six agencies that you sometimes find it difficult to understand who does what. So, when there is a lack of clarity, in any process, there could be failure,” he stated.
He also argued that the current ‘contract oil’ model directly contradicts Sections 16 and 44 (3) of the Nigerian Constitution, which mandates the government to “manage Nigeria’s natural resources in a manner that secures the maximum welfare, freedom, and happiness of every citizen.”
He dismissed the current arrangement, which primarily benefits IOCs, as falling far short of this constitutional requirement, saying: “The dominance of IOCs in the sector has historically limited opportunities for developing local content and building domestic capacity in the oil and gas industry.”
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