Experts, oil and gas sector stakeholders and policy makers have called for urgent reforms in Nigeria's oil and gas sector to increase economic growth.
They did so at a day-long symposium themed “Nigeria’s Oil Industry: The Way Forward”, organized by Classmasters in collaboration with other partners.
The symposium focused on addressing social, economic and environmental challenges affecting the core sector of the Nigerian economy for almost seven decades.
Speaking to journalists in the interview on the sidelines of the symposium, the CEO of Classmasters Limited, publishers of Development Agenda magazine, Paddy Ezeala, called for collaboration and innovative solutions to address the challenges of the oil and gas sector.
He said: “Our goal is to ensure that all stakeholders understand the complexities of this industry and collaboratively create a way forward that meets global standards.
“This industry is vital to our economy and national identity. For decades, we have not been able to fully exploit its potential. There is an urgent need for reforms and a unified strategy.
“The Petroleum Industry Act (PIA) was a major topic of discussion. Attendees advocated for amendments to address the diverse interests of stakeholders, including environmentalists, host communities, local operators and international companies.
“No document is perfect, but this symposium aims to generate practical recommendations to drive meaningful progress.”
Ezeala explained the distinctive character of the event and the strong support from key industry players including NNPC Limited (NNPCL).
“Unlike previous meetings, the results of this symposium will not be ignored. “As an environmentalist, I strongly advocate for mandatory environmental responsibility on the part of all oil companies,” he added.
Participants expressed optimism about producing a comprehensive and workable document to address critical issues such as the energy transition, environmental sustainability and socio-economic challenges in the oil and gas industry.
For his part, Dr. Oshita Oshita, executive director of the Ubuntu Center for Peacebuilding and Development in Africa (UCAP), highlighted the growing security challenges in oil-producing areas.
“The Niger Delta faces evolving security threats that are deeply linked to the dynamics of oil production. “Many underlying factors do not reach the public domain but significantly impact the security landscape,” he said.
Oshita also highlighted the link between Nigeria's dependence on oil, often called the “Dutch disease”, and the abandonment of oil communities. “The Niger Delta, despite being the source of the country's oil wealth, remains one of the most underdeveloped areas. Residents of this region see little or no benefit from the resources extracted from their lands, fueling resentment and security crises. “As long as these grievances persist, the challenges will persist.”
He argued that the implementation of the Petroleum Industry Act (PIA) presents a unique opportunity to address these issues.
“The PIA offers several opportunities that can be leveraged to transform surrounding oil communities and businesses. “While the Act has its challenges, its potential to create a more equitable and sustainable industry cannot be underestimated,” he said.
Oshita's article highlights the often overlooked aspects of oil production that have a significant impact on the safety landscape.
He attributes the country's struggles to the “Dutch disease,” which has led to an over-reliance on oil, neglecting other sectors of the economy.
A major concern is the lack of benefits for communities in oil-producing areas. This has created ongoing security challenges, as people fight for their lands and resources. Oshita proposes that Nigeria can overcome these challenges by harnessing the opportunities presented by the Petroleum Industry Act (PIA).
Despite criticism that Nigeria is not in control of its oil industry, Oshita believes that following the PIA guidelines can help the country regain control.
He emphasized the need for stakeholders to focus on realizing the benefits of the PIA, which can positively impact surrounding communities, oil communities and businesses.