ADDRESSING THE IMPACT OF INTERNATIONAL LAW ON THE PETROLEUM INDUSTRY IN NIGERIA

Abstract

The Nigerian oil and gas industry has evolved over the years with respect to the laws guiding the industry. International law has played a vital role in ensuring the industry’s growth. International law has had some positive and negative impacts on the industry. It is on this premise that this work addresses the impact of international law on the oil and gas industry in Nigeria. The work noted that before the Petroleum Act of 1969 came into force, Nigeria had the Mineral Oils Ordinance of 1914, which was an international law as a result of colonial rule. While international laws helped to develop Nigeria and her economy, the international companies that came to explore for petroleum allegedly exploited the country’s resources without regard for its environment and people by degrading the environment and violating the rights of local communities. These actions were allegedly carried out without adequate compensation or proper payment of royalties and other dues. However, over time, the United Nations Declaration of 1962 provided for permanent sovereignty over natural resources. The resolution stated that nations should have full control over their natural wealth and dispose of this wealth for the benefit and development of their citizens. Several international laws, such as the United Nations Convention on the Law of the Sea, among others, have significantly impacted the oil and gas industry in Nigeria and are discussed in the course of this work. This work adopted the doctrinal method of research with reference to primary and secondary materials.