LEGAL APPRAISAL OF PETROLEUM PRODUCTION AND SUPPLY SECURITY MEASURES IN NIGERIA

Abstract

Nigeria is blessed with abundant petroleum and other natural resources such as oil and gas, yet
the citizens are energy poor. Nigeria’s petroleum concern could be expressed in a paradoxical state.
That is energy poverty in the midst of energy wealth. Generally speaking, Nigeria’s economy is
mono-cultural where almost every economic activity revolves around oil and gas. Petroleum oil
accounts for about 80% of government revenues, including export and foreign exchange earnings
and 70% of electricity generation. Our transportation system is completely dependent on
petroleum. Therefore, it follows that petroleum security is the life blood of Nigerian economy:
Ironically, oil was discovered in commercial quantity in 1958 at Oloibiri-Bayelsa State and over
the years of production and refining of the product Nigeria cannot boast of efficient and effective
functional refineries capable of refining at its optimal capacity instead she exports her crude oil
and imports refined products subsidized by the Federal Government. This article adopted the
doctrinal research method relying on primary and secondary sources of law. It found out among
other factors bedeviling petroleum production and supply security to include the overbearing
influence in the operation of the industry by the government. Corruption and the impotency of the
extant laws on petroleum. The article therefore concluded with a call for a more robust; deliberate
and concerted efforts towards improving the petroleum production and supply security
architecture. Consequently, this article recommended among others for a robust improved and
better legal framework, elimination of corruption in the industry and prioritization of domestic
supply obligation by the IOC’s.