From Adanna Nnamani, Abuja
Experts, policymakers, and stakeholders gathered for a high-level symposium to deliberate on the future of the country’s oil and gas industry, which has been a cornerstone of the nation’s economy for close to 70 years.
The event, held in Abuja on Thursday, provided a platform to address pressing issues, ranging from environmental challenges to socio-economic impacts and security concerns, with the aim of developing actionable recommendations for the sector’s advancement.
Managing Director of Classmasters Ltd. and Editor-in-Chief of Development Agenda Magazine, Paddy Ezeala, explained the significance of the symposium in fostering awareness and actionable discourse saying, “This is an industry that, as I mentioned in my opening remarks, is central to our economy and even to our nationhood. It is something that we all should be familiar with. In fact, the entire economy of Nigeria has been revolving around oil for the past 70 years. Unfortunately, we have not fully embraced this knowledge. There is a need for awareness; we need to understand how the industry works.
“Now we are discussing energy transition. How are we transitioning? How are we moving forward? People should be aware and environmentally conscious. They should also understand how other factors, such as insecurity, are affecting oil production. We are not even able to meet our OPEC quota. Various factors are contributing to this challenge.
“Therefore, let us explore whether we can come up with a document that can assist stakeholders and help the government move forward.,” he said.
He added that the event is expected to also address the issue of insecurity in oil-producing regions, how the country could better position itself in the global shift toward renewable energy while maximizing current petroleum resources, as well as other key issues affecting the sector.
Speaking on the Petroleum Industry Act (PIA), Ezeala, called for amendments to address emerging challenges and stakeholder concerns, especially as regards to environmental issues.
Responding to concerns about the fate of symposium recommendations, Ezela stressed the involvement of theNigerian National Petroleum Company (NNPC) Limited and other major stakeholders as a positive step toward implementation. “This is not just another talk shop.
With key players on board, we aim to produce a document that guides policy and action,” he affirmed.
Professor Oshita Osang, who presented a paper on the security challenges surrounding oil production in Nigeria, particularly in the Niger Delta region, stated that the region’s security issues are deeply tied to the dynamics of oil production, which continue to worsen over time.
According to Osang, there are several hidden challenges that affect oil production, which are rarely discussed in the public domain.
He argued that these challenges, particularly the neglected socio-economic conditions in the oil-producing areas, significantly impact the security situation, while the people remain marginalized and impoverished.
He said: “One of our major issues is the Dutch disease—our over-reliance on oil while neglecting other sectors of the economy. The oil industry is the focus of national policy, but the communities where this oil is extracted continue to suffer from underdevelopment.”
He pointed out that while oil wealth sustains the national economy, the local populations often see little to no benefit, contributing to the region’s ongoing security problems. “People in the Niger Delta will continue to fight for their land and resources until they see tangible benefits,” he added.
In discussing the Petroleum Industry Act (PIA), the Professor said the document, despite its benefits, posed a number of challenges. He however, noted that with proper implementation, the PIA could help bridge the gap between oil-producing communities and the national economy.
“There are opportunities in the Petroleum Industry Act that, if leveraged, could benefit both the oil-bearing communities and the broader economy.If Nigeria focuses on harnessing the PIA’s advantages, we could be moving in the right direction,”Osang remarked.
Osang also responded to concerns raised by some industry experts who argue that Nigeria is not fully in control of its petroleum industry. He expressed confidence that Nigeria could regain control if it adhered to the principles and guidelines established in the PIA.