Oil and Gas Problems in Nigeria; The Impending Problems and the Preferable Solutions

Abstract

Nigeria has been very active in the exploitation and exploration of oil and gas. It has been the major source of revenue which has contributed over 90% on yearly basis. There is no doubt that the Nigerian oil and gas industry is plagued with many impending problems.

This article examines the crux of problems confronting the oil and gas industry as well as proffering reasonable solution. The problems among others include volatility of oil prices, obsolete laws and regulation, pipeline vandalism, corruption and lack of government funding.

The article established that innermost players are responsible for plethora problems affecting the industry which are government owned agencies which are deeply involved in the malaise. The Global market externalities and external forces are not left out.

The article recommends that oil and gas industry requires a surgical operation and there must be holistic approach in order for the industry to attain the global standard.

Keywords: Petroleum Industry, Local Content, Corruption, Petroleum Act, Government Funding