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Senior Advocate of Nigeria, Dr Olisa Agbakoba, has urged the Federal Government to consider adopting the development oil model instead of the current contract oil model.
The legal expert made this statement during a press briefing in Lagos.
According to Agbakoba, the development oil model views oil and gas as more than just a source of revenue, but as a tool for national progress.
He emphasized that this approach contrasts with the traditional contract oil method that Nigeria has been using.
Agbakoba pointed out that the current model allows international oil companies to co-own joint ventures for oil extraction, sales, and profit sharing with the government.
He expressed concern about the excessive control that IOCs have over operations and the limited involvement of the Nigerian National Petroleum Company Limited in key decisions.
He criticized the significant capital flight in the petroleum industry due to payments to foreign contractors, the use of foreign banks for transactions, and the repatriation of profits to IOC home countries.
The legal luminary advocated for the adoption of the development oil model, which emphasizes active state participation and control in managing oil resources.
He called for the development of local refining capacity, the establishment of petrochemical industries, and the creation of downstream industries using oil and gas as raw materials.
Agbakoba highlighted that this model aims to retain a larger portion of oil revenue within the country for strategic reinvestment in infrastructure, education, healthcare, economic diversification, and research and development in energy-related fields.
He also proposed the creation of a new governance framework focused on development, including a strong and independent regulatory body to ensure transparency and efficiency, as well as a restructured national oil structure.
