Senior Partner at Olisa Agbakoba Legal, Dr. Olisa Agbakoba, has called for a repeal of the Petroleum Industry Act, and a complete overhaul of Nigeria’s oil and gas sector, stating that the current system has ‘completely failed’, and is responsible for poverty, hunger across the country, which he feared may lead to a ‘food riot.’

Attributing the failure to a lack of clarity in the hydrocarbon process, which has led to the exclusion of Nigerian players and the dominance of International Oil Companies (IOCs), Agbakoba argued that the president’s role as minister of petroleum resources is a historical mistake that has led to confusion and inefficiency.

He also criticised the Nigerian National Petroleum Corporation (NNPC) for wearing two hats as both regulator and operator, which has led to a conflict of interest.

Speaking to journalists during a media chat where he presented a policy paper titled, ‘The Paradox of Nigeria’s Oil and Gas Industry’, Agbakoba suggested that Nigeria should adopt a model similar to Saudi Arabia’s, where the state controls the oil and gas sector, and the minister of energy oversees everything, including electricity, hydrocarbons, and solid minerals.

He also advocated dismantling of the current oil and gas system and the establishment of a new one that prioritises Nigerian interests.

According to him, “The PIA itself is unconstitutional. Section 62 states that NNPC can deduct money. Get the importance of this. We have more revenue than we are getting, whether it’s from oil and gas or shipping or whatever. But the only way that we can get it right Is to have proper policies.

“Those who designed the PIA made a big error. What is the difference between upstream regulatory commission and downstream? What sense does it make? Why don’t we follow the model of Saudi Arabia that is simple? They only have a Minister of Energy; he controls everything that has to do with energy.

“The value of our oil wells is something like $600 trillion over the next 40 years. If I were the president, I would forward-borrow loans. I would tell China, I need $10 trillion. And they would forward-borrow the money to you.

“I would deploy the money into public works such as providing infrastructures that would enable productivity. That’s what President Roosevelt did. He had the largest project in the world called the TVA, the Tennessee Valley Authority that employed 4 million Americans.

“If Nigeria does this, you can imagine the number of people that will be engaged. Because the problem on the streets is people are hungry. Unless you say they’re not. People are hungry.

“I’m afraid of what is coming. I see more hunger now, and I foresee a food riot. Something is fundamentally wrong. Abuja people are not seeing it.”

Agbakoba expressed concern over the country’s reliance on IOCs, which he believes do not add value to the sector. He cited the example of Saudi Arabia, which has trained its citizens to occupy key positions in the oil and gas sector. He also praised India’s Prime Minister Modi for prioritising India’s interests and achieving the fastest-growing economy in the world.

The legal expert criticised the Nigerian government for its lazy approach to funding oil wells, which has led to the country’s reliance on IOCs. He suggested that Nigeria should seek loans based on securitisation, using its assets as collateral, rather than relying on IOCs.

He also spoke on the importance of marketing Nigeria’s crude oil, which he believes is not being done effectively. He cited the example of Saudi Arabia, which has a huge marketing responsibility for its crude oil.

He also expressed concern over the lack of interest in the production of crude oil and the outsourcing of marketing to greedy billionaire companies.

The legal expert therefore called on President Bola Tinubu to appoint capable ministers who understand the difference between policy formulation and execution and urged the government to develop a fleet of vessels to transport crude oil, rather than relying on private operators.

He emphasised the need for Nigeria to develop its resources, including coal, and to prioritise its interests in the global economy.

Further, he expressed concern over the hypocrisy of developed countries, which he believes are not doing enough to support developing countries like Nigeria.

According to him, “The first thing I would do if I were president is to dismantle the cabinet because it’s too large. For instance, with the number of spokespersons the president has, what do you need the Ministry of Information for? What do you need NTA for? Who watches NTA anyway, Nobody.

“We have the Oransanya Report. Why not implement the report, so you have a lean government, and cut the wastage? I mean, this man already said so. He’s given us a blueprint.

“The president must take charge. The Carbon Tax Act was written to drive away people doing our business. And unless you have an exemption, you can’t be here.

“The money in the maritime industry is so stupendous that President Tinubu had better relocate his seat to Apapa for a while. The money would just be coming like this. It’s everywhere.

“A Dutch company did a report which they closed. They didn’t want to show us. They told us; can you guess how much Apapa Port ought to make a day; $20 billion a day.

“Because 10 vessels are coming to Mokwa, which is the Central West African area, if 10 are coming to Africa, 8 are coming into Nigeria. And they have to pay all kinds of charges. But they’re not paying. They slip in, offload and run away.” (AriseNews TV: Text, Excluding Headline)

Update news