Why Nigeria’s economy bleeds despite oil exploration – Experts

...Say policy dynamism, others key to sector's devt
...Add tyres, roofing sheets, fertilizers untapped by-
products of crude oil
By Ediri Ejoh
Experts in the country’s oil and gas sector, have
accused the Federal Government and the oil
communities of ignorance to contractual agreement
signed before exploration and production in the
region.
This was as they attributed such dysfunction to
policies and regulations supposedly meant to guide
petroleum operations.
Disclosing this at a workshop with journalists
organized by Natural Resources Governance
Institute, NRGI, Managing Partner, Sterling
Partnership, Mr. Israel Aye, stated that for the oil
sector to develop to its fortune, there is need for
development of the country’s legal framework,
which requires that such laws, regulations and
policies governing the industry should be
unambiguous, comprehensive, flexible, transparent,
dynamic and practical.
According to him, “Framework should be responsive
to Nigeria’s peculiar environment and not merely an
un-successful mimicry of global standards.”
He added that passing the Petroleum Industry Bill,
PIB into law is fundamental to providing certainty to
regulating the industry thereby attracting foreign
investors which would inturn enhance development
for the economy.
"Regulatory agencies in Nigeria need to develop the
capacity to ensure good behavior of the new
generation companies coming into the industries,
as the IOC’s are operating on a higher code of
ethics that is regulated.
He explained that the oil and gas industry in the
country is blessed with vast deposit which should
provide seed capital for development in other
sectors.
“However, Nigeria is deficit in this aspect as the
vast petroleum deposit has not translated into the
development associated with it, compared to other
oil rich countries.
“Apart from generally known products extracted
from crude which includes, Petrol, Diesel and
Kerosene, other products like tyres, roofing sheets,
fertilizers, others could also be a positive byproduct
of crude oil.”
He also lamented that government is solely
concerned about the petroleum products gotten
from crude, however, shortchanging itself of other
benefits that could be generated from harnessing
the full potential of crude oil.
He stressed that proceeds from oil revenues should
be used for development effort as opposed to
squandering it.
He cited that Norway, already have a re-investment
program for its oil proceeds to develop other
sectors of the economy that could encourage
Internally Generated Revenue.
Thus, he urged the government to harness the oil
proceeds to develop other sectors of the economy
other than what is been practiced, “because oil will
one day finish, as it is a non-replaceable natural
resources,” he added.
On his part, Deputy Executive Director,
Environmental Right Action, Friends of the Earth,
Nigeria, Akimbode Olufemi, also blamed the
country’s weak policy and legislations on laws
inherited from the colonial masters, saying that
such are outdated, ineffective and begging for
review.
“Most of the environmental laws in Nigeria were
enacted many years ago as far back as 1950, 1970s
with reviews in the 1990s, thus these laws are
outdated and urgently needs review with current
realities in the sector.”
He added that the weak and inactive institutions
especially those who regulate the sector like; DPR,
NESRA, are marred in corruption.
There is lack of environmental laws to protects the
local communities and livestock.