NIGERIA PETRO-BUSINESS: A FOCUS ON NNPC SINCE 1970s

Abstract

The discovery of crude oil of large commercial quantity in the Oloibiri community of Ijawland by 1956 precipitated the eventual establishment of Nigeria National Oil Corporation (NNOC) in 1971. This was meant to ensure judicious management of the oil sector, particularly when oil already became very lucrative business in the world market. This current research therefore, examines the operations, activities, and compliance of Nigeria National Petroleum Company (NNPC) to the legislations and policies which established the corporation since 1970s. It argue that the mismanagement of oil revenue by the NNPC has continuously hampered the economic growth and development expected of a nation blessed with abundant crude oil. For proper historical analyses, collection and interpretation of facts, it employed secondary source method for data. This study found that, the absence of government direct control and monitoring of the company’s operations, particularly on the issuance of oil licences to prospective private oil companies in Nigeria, to a large extent, hindered vibrant development of the country. It is expected that the huge revenue accrued from the sale of crude oil and royalties collected from those oil operators would enhanced rapid socio-economic development of the country, particularly the oil producing communities of Niger Delta. It conclude that, there is urgent need for the federal government to re-direct its policy and management strategy over NNPC, only then, would the expectations of Nigerians, in terms of development in infrastructure, manufacturing, production, alleviation of poverty, access to education and high living standard, peace and security would be achieved.