Case Study

Nigerian National Petroleum Corporation: Regulatory opportunities – avoided by whom?

3 pages
December 2006
Reference: IMD-3-1793

This case gives a brief economical and political overview of oil exploitation in Nigeria from the 1950s until the present day. Nigeria began commercially exploiting its oil reserves in the late 1950s, and the first petroleum tax system of 1959 introduced a 50:50 profit split between the government and international operators. The government sought equity stakes, but did not exercise its options until April 1971 partly as a prerequisite for joining OPEC that year, partly in response to certain IOCs sponsoring the Biafran war of succession. Decree 18 of 1971 established the Nigerian National Oil Corporation (NNOC) to “participate in all aspects of petroleum including exploration, production, refining, marketing, transportation, and distribution.” Learning objectives: Understanding the linkages between resource economics, economic development and governance concerns. Learning about contrasting models of Government-Business Relations.

Learning Objective

Understanding the linkages between resource economics, economic development and governance concerns. Learning about contrasting models of Government-Business Relations.

Keywords
Regulation, Energy, Economic Policy
Settings
Nigeria
1959 - 2006
Type
Published Sources
Copyright
© 2006
Available Languages
English
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