According to a report by Arise TV on Wednesday, Dr. Olisa Agbakoba, Senior Partner at Olisa Agbakoba Legal, has called for the immediate repeal of the Petroleum Industry Act (PIA) and a complete overhaul of Nigeria's oil and gas sector.
In a media chat on Tuesday, Agbakoba asserted that the current system has "completely failed," attributing it to widespread poverty and hunger, which he fears could spark a "food riot."
Agbakoba presented a policy paper titled, "The Paradox of Nigeria’s Oil and Gas Industry," in which he criticized the lack of clarity in the hydrocarbon process. He argued that this has excluded Nigerian players and allowed International Oil Companies (IOCs) to dominate the sector.
"The president’s role as minister of petroleum resources is a historical mistake that has led to confusion and inefficiency," Agbakoba remarked.
The legal expert further criticized the Nigerian National Petroleum Corporation (NNPC) for its dual role as both regulator and operator, leading to a conflict of interest.
He 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 all energy-related matters, including electricity, hydrocarbons, and solid minerals.
"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," Agbakoba emphasized.
He argued that those who designed the PIA made significant errors, such as creating separate upstream and downstream regulatory commissions, which he sees as unnecessary complications.
Agbakoba proposed that Nigeria should forward-borrow loans against its oil wealth, much like President Roosevelt's New Deal projects in the United States.
"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," he suggested. He believes that this funding could be used to improve infrastructure and create jobs, addressing the underlying issues of poverty and hunger.
“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 warned.
He also criticized Nigeria’s heavy reliance on IOCs, which he argued do not add sufficient value to the sector. He cited Saudi Arabia's success in training its citizens for key positions in the oil and gas industry and praised India’s Prime Minister Modi for prioritizing national interests and achieving rapid economic growth.
Agbakoba called for the Nigerian government to secure loans based on securitization, using its assets as collateral, rather than relying on IOCs. He also stressed the importance of marketing Nigeria’s crude oil effectively, pointing to Saudi Arabia's successful marketing strategies.
Agbakoba also emphasized the need to streamline the government, suggesting that the current cabinet is too large. "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," he stated.
He called for the implementation of the Oransanya Report to create a lean government and cut wastage.
In his concluding remarks, Agbakoba urged President Bola Tinubu to appoint capable ministers who understand the difference between policy formulation and execution. He advocated for the development of a fleet of vessels to transport crude oil and emphasized the need to prioritize Nigeria's interests in the global economy.
He also criticized the hypocrisy of developed countries, arguing that they are not doing enough to support developing nations like Nigeria.