Tuesday, 13 October 2015

The Petroleum Sector REFORMS and its Achievements...

  1. Problem: The Petroleum sector in Nigeria has traditionally been characterised by opacity and lack of transparency, lack of environmental responsibility and allegations of organised and large scale oil theft. Also, petroleum products were not readily available to citizens despite the fact that Nigeria is one of the world’s largest oil producers.

    Reform Actions:
    Adoption of public private partnerships through the joint venture operations between the Nigerian National Petroleum Corporation (NNPC) and major oil companies
    - Promotion of private sector investment in both upstream and downstream activities
    - Deregulation of the industry
    - Removal of oil subsidy in the marketing of petroleum products
    - Diversification of the transportation of products, including the carriage of products by rail
    - Increasing local content in the industry
    - Gas Monetisation and Commercialisation Policy
    - Petroleum Industry Bill
    - Gas Master Plan
  • Main Achievements: The disappearance of long queues at petrol stations is a major achievement, as is the ongoing rehabilitation of refineries.

    Key Challenges: 
    (a) issues remain around transparency in the administration of the subsidy regime and accounting for revenue from the oil and gas sector; 
    (b) non-passage of the Petroleum Industry Bill constrains full reform implementation; and
    (c) public perception is that corruption is still prevalent in the sector. 

    Reference:  Public Service Reforms in Nigeria (1999-2014) - A Comprehensive Review

    Click to view Compendium 

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