Political Economy of the Petroleum Sector in Nigeria
The relatively slow pace of Nigeria's development has often been attributed to the phenomenon of the resource curse whereby the nature of the state as a "rentier" dilutes accountability for development and political actors are able t...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://hdl.handle.net/10986/3542 |
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okr-10986-3542 |
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oai_dc |
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okr-10986-35422017-12-13T13:02:57Z Political Economy of the Petroleum Sector in Nigeria Gboyega, Alex Soreide, Tina Le, Tuan Minh Shukla, G. P. ACCOUNTABILITY ACID RAIN ASSOCIATED GAS AUDITS AUTHORITY BALANCE BARRELS PER DAY BUDGET EXPENDITURES BUDGET REFORM CASH TRANSFERS CEMENT CENTRAL GOVERNMENT CENTRALIZATION CITIZENS CIVIL SOCIETY CIVIL SOCIETY ORGANIZATIONS COAL COMMUNITY DEVELOPMENT COMPETITIVE BIDDING CONFIDENCE CONFLICT OF INTEREST CONSENSUS CONSTITUTION CONSTITUTIONS CORRUPTION CORRUPTION PERCEPTION CORRUPTION PERCEPTION INDEX COUNCILS CPI CRUDE OIL CRUDE OIL LOSSES CRUDE PRODUCTION DECENTRALIZATION DECREE DELTA AREA DEMOCRACY DEMOCRATIC SYSTEM DEPOSITS OF HYDROCARBONS DISCLOSURE DISTORTED INCENTIVES DISTRIBUTION OF OIL DRILLING DRILLING ACTIVITIES ECONOMIC ACTIVITY ECONOMIC AND FINANCIAL CRIMES COMMISSION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC SITUATION EFCC ELECTRICITY ENACTMENT ENVIRONMENTAL ENVIRONMENTAL DEGRADATION ENVIRONMENTAL PROTECTION EQUILIBRIUM EXCLUSIVE BENEFITS EXECUTION EXECUTIVE POWER EXPENDITURE EXPLOITATION EXTRACTIVE INDUSTRIES EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE FEDERAL GOVERNMENT FEDERALISM FINANCIAL CAPACITY FINANCIAL CONTROL FINANCIAL CRIMES FINANCIAL CRISIS FINANCIAL MANAGEMENT FINANCIER FISCAL DECENTRALIZATION FISCAL INCENTIVES FISCAL POLICY FISCAL REFORM FISCAL REGIME FISCAL SYSTEM FISHING FOREIGN BANK ACCOUNTS FOREIGN POLICY GAS EXPORTS GAS FLARING GAS INDUSTRY GAS PIPELINE GAS PIPELINES GAS PRODUCTION GAS RESOURCES GAS SALES GOOD GOVERNANCE GOVERNMENT CONTROLS GOVERNMENT OFFICIALS GOVERNMENT REVENUES GOVERNMENTAL POLICIES GROSS DOMESTIC PRODUCT HEAD OF STATE HIGH UNEMPLOYMENT IMPEACHMENT INCOME TAX INSTITUTIONAL FRAMEWORK INTERGOVERNMENTAL TRANSFERS INTERNATIONAL OIL COMPANIES JUDICIARY LACK OF ACCOUNTABILITY LAND USE LAWYER LEADERSHIP LEGISLATION LEGISLATIVE BODIES LEGISLATIVE COMMITTEES LEGISLATORS LEGISLATURE LEGITIMACY LEVELS OF GOVERNMENT LOCAL AUTHORITIES LOCAL COUNCILS LOCAL GOVERNMENT LOCAL GOVERNMENTS MILITARY REGIMES MILLION BARRELS MINERAL MINERAL COMMODITIES MINERAL OILS MINES MINISTRY OF FINANCE NATIONAL INCOME NATIONAL INDEPENDENCE NATIONAL OIL NATIONAL PLANNING NATIONS NATURAL GAS NATURAL RESOURCES NONRENEWABLE NATURAL RESOURCES OIL OIL AND GAS OIL AND GAS SECTOR OIL COMPANY OIL EXPORTS OIL INDUSTRY OIL PIPELINES OIL PRICE OIL PRICES OIL PRODUCERS OIL PRODUCING OIL PRODUCTION OIL RESERVE OIL RESOURCES OIL REVENUES OIL SECTOR OIL-PRODUCING COUNTRIES OPEC ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES PETROLEUM PETROLEUM COMPANY PETROLEUM CORPORATION PETROLEUM EXPORTS PETROLEUM INDUSTRY PETROLEUM LAW PETROLEUM PRODUCTION PETROLEUM PRODUCTS PETROLEUM RESOURCE PETROLEUM RESOURCES PETROLEUM REVENUES PETROLEUM SECTOR PIPELINE POLITICAL APPOINTMENTS POLITICAL CONSENSUS POLITICAL CONTROL POLITICAL ECONOMY POLITICAL ELITE POLITICAL INTERFERENCE POLITICAL POWER POLITICIANS POOR GOVERNANCE POWER GENERATION PREFERENTIAL TREATMENT PRESIDENCY PRICE FOR OIL PRICE OF OIL PRIMARIES PRIVATE SECTOR PRODUCERS PRODUCTION COSTS PRODUCTION SHARING CONTRACTS PROVEN RESERVES PUBLIC EXPENDITURES PUBLIC FINANCE PUBLIC HEARINGS PUBLIC INVESTMENT PUBLIC POLICY PUBLIC REVENUES PUBLIC SECTOR PUBLIC SERVICE PUBLIC UTILITIES PUBLIC WELFARE QUOTAS REFINED PETROLEUM PRODUCTS REFINED PRODUCTS REFINERIES REFINERY REFINING REHABILITATION REPRESENTATIVES RESOURCE ALLOCATION RESOURCE CURSE RESOURCE MANAGEMENT REVENUE ADMINISTRATION REVENUE COLLECTION ROYALTY ROYALTY RATES SAFETY REGULATIONS SENATE STATE CONTROL STATE GOVERNORS STATE INSTITUTIONS STATE REVENUES SUSTAINABLE DEVELOPMENT TAX ADMINISTRATION TAX CREDIT TAX LAW TAX LAWS TAX RATE TAX RATES TAX REFORM TAX REGIME TAX SYSTEM TRANSPARENCY UNEMPLOYMENT RATES The relatively slow pace of Nigeria's development has often been attributed to the phenomenon of the resource curse whereby the nature of the state as a "rentier" dilutes accountability for development and political actors are able to manipulate institutions to sustain poor governance. The impact of the political elite's resource-control and allocation of revenues on core democratic mechanisms is central to understand the obstacles to development and governance failure. Given that problems of petroleum sector governance are extremely entrenched in Nigeria, the key question is whether and how it is possible to get out of a poor equilibrium after fifty years of oil production. This paper uses a political economy perspective to analyze the governance weaknesses along the petroleum sector value chain and attempts to establish the links between challenges in sector regulation and the following major political and economic attributes: (i) strong executive control on petroleum governance in a political environment of weak checks and balances; (ii) regulatory and operating roles bundled into one institution, thereby creating conflict of interest; and (iii) manipulation of elections and political appointments. The restoration of democratic government has helped improve transparency and management of oil revenue and reforms at the federal level and proposed reforms of the petroleum sector hold much promise. At the same time, the judiciary has started to restore confidence that it will serve as a check and balance on the executive and the electoral process. Yet, these reforms are fragile and need to be deepened and institutionalized. They must be addressed not as purely technocratic matters but as issues of political economy and vested interests that must, through regulation and reform, be aligned with the public interest and a vision of Nigerian development. 2012-03-19T18:04:20Z 2012-03-19T18:04:20Z 2011-08-01 http://hdl.handle.net/10986/3542 English Policy Research working paper ; no. WPS 5779 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Africa Nigeria |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
World Bank |
| building |
World Bank Open Knowledge Repository |
| collection |
Online Access |
| language |
English |
| topic |
ACCOUNTABILITY ACID RAIN ASSOCIATED GAS AUDITS AUTHORITY BALANCE BARRELS PER DAY BUDGET EXPENDITURES BUDGET REFORM CASH TRANSFERS CEMENT CENTRAL GOVERNMENT CENTRALIZATION CITIZENS CIVIL SOCIETY CIVIL SOCIETY ORGANIZATIONS COAL COMMUNITY DEVELOPMENT COMPETITIVE BIDDING CONFIDENCE CONFLICT OF INTEREST CONSENSUS CONSTITUTION CONSTITUTIONS CORRUPTION CORRUPTION PERCEPTION CORRUPTION PERCEPTION INDEX COUNCILS CPI CRUDE OIL CRUDE OIL LOSSES CRUDE PRODUCTION DECENTRALIZATION DECREE DELTA AREA DEMOCRACY DEMOCRATIC SYSTEM DEPOSITS OF HYDROCARBONS DISCLOSURE DISTORTED INCENTIVES DISTRIBUTION OF OIL DRILLING DRILLING ACTIVITIES ECONOMIC ACTIVITY ECONOMIC AND FINANCIAL CRIMES COMMISSION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC SITUATION EFCC ELECTRICITY ENACTMENT ENVIRONMENTAL ENVIRONMENTAL DEGRADATION ENVIRONMENTAL PROTECTION EQUILIBRIUM EXCLUSIVE BENEFITS EXECUTION EXECUTIVE POWER EXPENDITURE EXPLOITATION EXTRACTIVE INDUSTRIES EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE FEDERAL GOVERNMENT FEDERALISM FINANCIAL CAPACITY FINANCIAL CONTROL FINANCIAL CRIMES FINANCIAL CRISIS FINANCIAL MANAGEMENT FINANCIER FISCAL DECENTRALIZATION FISCAL INCENTIVES FISCAL POLICY FISCAL REFORM FISCAL REGIME FISCAL SYSTEM FISHING FOREIGN BANK ACCOUNTS FOREIGN POLICY GAS EXPORTS GAS FLARING GAS INDUSTRY GAS PIPELINE GAS PIPELINES GAS PRODUCTION GAS RESOURCES GAS SALES GOOD GOVERNANCE GOVERNMENT CONTROLS GOVERNMENT OFFICIALS GOVERNMENT REVENUES GOVERNMENTAL POLICIES GROSS DOMESTIC PRODUCT HEAD OF STATE HIGH UNEMPLOYMENT IMPEACHMENT INCOME TAX INSTITUTIONAL FRAMEWORK INTERGOVERNMENTAL TRANSFERS INTERNATIONAL OIL COMPANIES JUDICIARY LACK OF ACCOUNTABILITY LAND USE LAWYER LEADERSHIP LEGISLATION LEGISLATIVE BODIES LEGISLATIVE COMMITTEES LEGISLATORS LEGISLATURE LEGITIMACY LEVELS OF GOVERNMENT LOCAL AUTHORITIES LOCAL COUNCILS LOCAL GOVERNMENT LOCAL GOVERNMENTS MILITARY REGIMES MILLION BARRELS MINERAL MINERAL COMMODITIES MINERAL OILS MINES MINISTRY OF FINANCE NATIONAL INCOME NATIONAL INDEPENDENCE NATIONAL OIL NATIONAL PLANNING NATIONS NATURAL GAS NATURAL RESOURCES NONRENEWABLE NATURAL RESOURCES OIL OIL AND GAS OIL AND GAS SECTOR OIL COMPANY OIL EXPORTS OIL INDUSTRY OIL PIPELINES OIL PRICE OIL PRICES OIL PRODUCERS OIL PRODUCING OIL PRODUCTION OIL RESERVE OIL RESOURCES OIL REVENUES OIL SECTOR OIL-PRODUCING COUNTRIES OPEC ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES PETROLEUM PETROLEUM COMPANY PETROLEUM CORPORATION PETROLEUM EXPORTS PETROLEUM INDUSTRY PETROLEUM LAW PETROLEUM PRODUCTION PETROLEUM PRODUCTS PETROLEUM RESOURCE PETROLEUM RESOURCES PETROLEUM REVENUES PETROLEUM SECTOR PIPELINE POLITICAL APPOINTMENTS POLITICAL CONSENSUS POLITICAL CONTROL POLITICAL ECONOMY POLITICAL ELITE POLITICAL INTERFERENCE POLITICAL POWER POLITICIANS POOR GOVERNANCE POWER GENERATION PREFERENTIAL TREATMENT PRESIDENCY PRICE FOR OIL PRICE OF OIL PRIMARIES PRIVATE SECTOR PRODUCERS PRODUCTION COSTS PRODUCTION SHARING CONTRACTS PROVEN RESERVES PUBLIC EXPENDITURES PUBLIC FINANCE PUBLIC HEARINGS PUBLIC INVESTMENT PUBLIC POLICY PUBLIC REVENUES PUBLIC SECTOR PUBLIC SERVICE PUBLIC UTILITIES PUBLIC WELFARE QUOTAS REFINED PETROLEUM PRODUCTS REFINED PRODUCTS REFINERIES REFINERY REFINING REHABILITATION REPRESENTATIVES RESOURCE ALLOCATION RESOURCE CURSE RESOURCE MANAGEMENT REVENUE ADMINISTRATION REVENUE COLLECTION ROYALTY ROYALTY RATES SAFETY REGULATIONS SENATE STATE CONTROL STATE GOVERNORS STATE INSTITUTIONS STATE REVENUES SUSTAINABLE DEVELOPMENT TAX ADMINISTRATION TAX CREDIT TAX LAW TAX LAWS TAX RATE TAX RATES TAX REFORM TAX REGIME TAX SYSTEM TRANSPARENCY UNEMPLOYMENT RATES |
| spellingShingle |
ACCOUNTABILITY ACID RAIN ASSOCIATED GAS AUDITS AUTHORITY BALANCE BARRELS PER DAY BUDGET EXPENDITURES BUDGET REFORM CASH TRANSFERS CEMENT CENTRAL GOVERNMENT CENTRALIZATION CITIZENS CIVIL SOCIETY CIVIL SOCIETY ORGANIZATIONS COAL COMMUNITY DEVELOPMENT COMPETITIVE BIDDING CONFIDENCE CONFLICT OF INTEREST CONSENSUS CONSTITUTION CONSTITUTIONS CORRUPTION CORRUPTION PERCEPTION CORRUPTION PERCEPTION INDEX COUNCILS CPI CRUDE OIL CRUDE OIL LOSSES CRUDE PRODUCTION DECENTRALIZATION DECREE DELTA AREA DEMOCRACY DEMOCRATIC SYSTEM DEPOSITS OF HYDROCARBONS DISCLOSURE DISTORTED INCENTIVES DISTRIBUTION OF OIL DRILLING DRILLING ACTIVITIES ECONOMIC ACTIVITY ECONOMIC AND FINANCIAL CRIMES COMMISSION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC SITUATION EFCC ELECTRICITY ENACTMENT ENVIRONMENTAL ENVIRONMENTAL DEGRADATION ENVIRONMENTAL PROTECTION EQUILIBRIUM EXCLUSIVE BENEFITS EXECUTION EXECUTIVE POWER EXPENDITURE EXPLOITATION EXTRACTIVE INDUSTRIES EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE FEDERAL GOVERNMENT FEDERALISM FINANCIAL CAPACITY FINANCIAL CONTROL FINANCIAL CRIMES FINANCIAL CRISIS FINANCIAL MANAGEMENT FINANCIER FISCAL DECENTRALIZATION FISCAL INCENTIVES FISCAL POLICY FISCAL REFORM FISCAL REGIME FISCAL SYSTEM FISHING FOREIGN BANK ACCOUNTS FOREIGN POLICY GAS EXPORTS GAS FLARING GAS INDUSTRY GAS PIPELINE GAS PIPELINES GAS PRODUCTION GAS RESOURCES GAS SALES GOOD GOVERNANCE GOVERNMENT CONTROLS GOVERNMENT OFFICIALS GOVERNMENT REVENUES GOVERNMENTAL POLICIES GROSS DOMESTIC PRODUCT HEAD OF STATE HIGH UNEMPLOYMENT IMPEACHMENT INCOME TAX INSTITUTIONAL FRAMEWORK INTERGOVERNMENTAL TRANSFERS INTERNATIONAL OIL COMPANIES JUDICIARY LACK OF ACCOUNTABILITY LAND USE LAWYER LEADERSHIP LEGISLATION LEGISLATIVE BODIES LEGISLATIVE COMMITTEES LEGISLATORS LEGISLATURE LEGITIMACY LEVELS OF GOVERNMENT LOCAL AUTHORITIES LOCAL COUNCILS LOCAL GOVERNMENT LOCAL GOVERNMENTS MILITARY REGIMES MILLION BARRELS MINERAL MINERAL COMMODITIES MINERAL OILS MINES MINISTRY OF FINANCE NATIONAL INCOME NATIONAL INDEPENDENCE NATIONAL OIL NATIONAL PLANNING NATIONS NATURAL GAS NATURAL RESOURCES NONRENEWABLE NATURAL RESOURCES OIL OIL AND GAS OIL AND GAS SECTOR OIL COMPANY OIL EXPORTS OIL INDUSTRY OIL PIPELINES OIL PRICE OIL PRICES OIL PRODUCERS OIL PRODUCING OIL PRODUCTION OIL RESERVE OIL RESOURCES OIL REVENUES OIL SECTOR OIL-PRODUCING COUNTRIES OPEC ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES PETROLEUM PETROLEUM COMPANY PETROLEUM CORPORATION PETROLEUM EXPORTS PETROLEUM INDUSTRY PETROLEUM LAW PETROLEUM PRODUCTION PETROLEUM PRODUCTS PETROLEUM RESOURCE PETROLEUM RESOURCES PETROLEUM REVENUES PETROLEUM SECTOR PIPELINE POLITICAL APPOINTMENTS POLITICAL CONSENSUS POLITICAL CONTROL POLITICAL ECONOMY POLITICAL ELITE POLITICAL INTERFERENCE POLITICAL POWER POLITICIANS POOR GOVERNANCE POWER GENERATION PREFERENTIAL TREATMENT PRESIDENCY PRICE FOR OIL PRICE OF OIL PRIMARIES PRIVATE SECTOR PRODUCERS PRODUCTION COSTS PRODUCTION SHARING CONTRACTS PROVEN RESERVES PUBLIC EXPENDITURES PUBLIC FINANCE PUBLIC HEARINGS PUBLIC INVESTMENT PUBLIC POLICY PUBLIC REVENUES PUBLIC SECTOR PUBLIC SERVICE PUBLIC UTILITIES PUBLIC WELFARE QUOTAS REFINED PETROLEUM PRODUCTS REFINED PRODUCTS REFINERIES REFINERY REFINING REHABILITATION REPRESENTATIVES RESOURCE ALLOCATION RESOURCE CURSE RESOURCE MANAGEMENT REVENUE ADMINISTRATION REVENUE COLLECTION ROYALTY ROYALTY RATES SAFETY REGULATIONS SENATE STATE CONTROL STATE GOVERNORS STATE INSTITUTIONS STATE REVENUES SUSTAINABLE DEVELOPMENT TAX ADMINISTRATION TAX CREDIT TAX LAW TAX LAWS TAX RATE TAX RATES TAX REFORM TAX REGIME TAX SYSTEM TRANSPARENCY UNEMPLOYMENT RATES Gboyega, Alex Soreide, Tina Le, Tuan Minh Shukla, G. P. Political Economy of the Petroleum Sector in Nigeria |
| geographic_facet |
Africa Nigeria |
| relation |
Policy Research working paper ; no. WPS 5779 |
| description |
The relatively slow pace of
Nigeria's development has often been attributed to the
phenomenon of the resource curse whereby the nature of the
state as a "rentier" dilutes accountability for
development and political actors are able to manipulate
institutions to sustain poor governance. The impact of the
political elite's resource-control and allocation of
revenues on core democratic mechanisms is central to
understand the obstacles to development and governance
failure. Given that problems of petroleum sector governance
are extremely entrenched in Nigeria, the key question is
whether and how it is possible to get out of a poor
equilibrium after fifty years of oil production. This paper
uses a political economy perspective to analyze the
governance weaknesses along the petroleum sector value chain
and attempts to establish the links between challenges in
sector regulation and the following major political and
economic attributes: (i) strong executive control on
petroleum governance in a political environment of weak
checks and balances; (ii) regulatory and operating roles
bundled into one institution, thereby creating conflict of
interest; and (iii) manipulation of elections and political
appointments. The restoration of democratic government has
helped improve transparency and management of oil revenue
and reforms at the federal level and proposed reforms of the
petroleum sector hold much promise. At the same time, the
judiciary has started to restore confidence that it will
serve as a check and balance on the executive and the
electoral process. Yet, these reforms are fragile and need
to be deepened and institutionalized. They must be addressed
not as purely technocratic matters but as issues of
political economy and vested interests that must, through
regulation and reform, be aligned with the public interest
and a vision of Nigerian development. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Gboyega, Alex Soreide, Tina Le, Tuan Minh Shukla, G. P. |
| author_facet |
Gboyega, Alex Soreide, Tina Le, Tuan Minh Shukla, G. P. |
| author_sort |
Gboyega, Alex |
| title |
Political Economy of the Petroleum Sector in Nigeria |
| title_short |
Political Economy of the Petroleum Sector in Nigeria |
| title_full |
Political Economy of the Petroleum Sector in Nigeria |
| title_fullStr |
Political Economy of the Petroleum Sector in Nigeria |
| title_full_unstemmed |
Political Economy of the Petroleum Sector in Nigeria |
| title_sort |
political economy of the petroleum sector in nigeria |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/3542 |
| _version_ |
1610769947734048768 |