Opinion
Privatising Nigeria’s Petroleum Industry (1)
The Nigerian economic
and political lexicons had never been in want of the right choice of words when government decides to intervene in the affairs of the petroleum industry. This is more so as the Petroleum Act 1969 Now Cap 10 Laws of Federation of Nigeria 2004, which supervises and regulates the industry from which the NNPC Act 1977, was derived, authorises the government to intervene.
The 1969 Petroleum Act also made NNPC a vertically integrated national oil company which means that NNPC can engage in exploration, production activities, transportation, marketing, supply and distribution of both crude oil and petroleum products ( upstream and downstream activities) .
This is one of the greatest undoing of the corporation as these activities are quite enormous for just one corporation, hence the various calls for its unbundling and restructuring. Thanks to the restructuring of 1988, which saw the creation of twelve departments out of the corporation but sadly enough, all of them were both in spirit and letter appendages of the NNPC.
For these reasons, they could not discharge their functions optimally and efficiently as the various departments were caught up by regulatory capture; each of them could not function independent of their farther and in particular, the Department of Petroleum Resources (DPR) which is industry regulator. No thanks to the non -passage of the Petroleum Industry Bill (PIB), which seeks to correct some of the challenges facing the industry.
I argue strongly that the non- passage of the PIB by the National Assembly is contributing to the regulatory uncertainty which faces the government in the petroleum sector, afortiori to the economic hardship that is currently strangulating Nigerians of all strata and the continuing environmental degradation of the Niger Delta region by oil companies operating in the region.
This is more so as poor regulatory framework in a regulated economy such as ours would lead to an unstable petroleum industry.
Conversely, a dynamic, robust and proactive regulatory benchmarks could revitalise an ailing public institution. Furthermore, a robust law could compel the government, to maintain certain level of standards of public services for its citizens in terms of the supply of petroleum products. The absence of any proactive legal regime in the industry has orchestrated regulatory and economic policy uncertainty in the sector in Nigeria
President Muhammadu Buhari-led government in its wisdom, has correctly or incorrectly intervened just like his predecessors in the affairs of the corporation, by announcing a new price band for the PM.
The reason government gave was that NNPC could not adequately supply more’ than 50% of the petroleum products requirements of the country and that the independent marketers could not, under the prevailing price regime, secure enough forex for the importation of petroleum product without recording a loss. The government also argued that the new price regime is the only way to make the product available and reliable for Nigerians.
However, it could be argued whether there is any need for govemment to be engaged in the control and management of the NNPC. The nature and extent of this control and management seems less clear but sometimes desirable.
Given the international nature of crude oil market, the capital intensive nature of the petroleum industry and the importance of petroleum as a catalyst for economic development in most countries , it would not be difficult to argue for the government’s control of this sector.
However, historically, governments are not good managers of resources. The examples in Britain and Normay could suffice here. In Britain, the control and management of British Petroleum in the UK was formerly under the supervision of the UK’s govemment but was later fully privatised, hence the
efficiency of the BP petroleum with huge presence in more than 100 countries of the world.
Norway oil was also fully owned by government but was later unbundled into two private independent companies with one saddled with policy matters while the other is engaged with investment and portfolio management.
Thus, the failure of NNPC in Nigeria to deliver efficient services after 47 years of its existence calls for a rethink of the government’s continuing direct control and management of the petroleum industry, in any guise, including the fixing of prices of products. This call has become all time imperative.
It has been restated overtime that to correct the market failures in the petroleum sector, the best govemment could do is to set out enabling environment, ensures stable legal, political and social environment for private partners to engage in the development of petroleum resources; leaving the industry to fix prices based on economic forces of demand and supply, while the government maintains some form of control through firm regulations and fiscal policies.’
Dr Dike is a senior lecturer, Rivers State University of Science and Technology, Port Harcourt.
Samuel C. Dike
Opinion
Wike VS Soldier’s Altercation: Matters Arising
The events that unfolded in Abuja on Tuesday November 11, 2025 between the Minister of the Federal Capital Territory, Chief Nyesom Wike and a detachment of soldiers guarding a disputed property, led by Adams Yerima, a commissioned Naval Officer, may go down as one of the defining images of Nigeria’s democratic contradictions. It was not merely a quarrel over land. It was a confrontation between civil authority and the military legacy that still hovers over our national life.
Nyesom Wike, fiery and fearless as always, was seen on video exchanging words with a uniformed officer who refused to grant him passage to inspect a parcel of land alleged to have been illegally acquired. The minister’s voice rose, his temper flared, and the soldier, too, stood his ground, insisting on his own authority. Around them, aides, security men, and bystanders watched, stunned, as two embodiments of the Nigerian state clashed in the open.
The images spread fast, igniting debates across drawing rooms, beer parlours, and social media platforms. Some hailed Wike for standing up to military arrogance; others scolded him for perceived disrespect to the armed forces. Yet beneath the noise lies a deeper question about what sort of society we are building and whether power in Nigeria truly understands the limits of its own reach.
It is tragic that, more than two decades into civil rule, the relationship between the civilian arm of government and the military remains fragile and poorly understood. The presence of soldiers in a land dispute between private individuals and the city administration is, by all civic standards, an aberration. It recalls a dark era when might was right, and uniforms conferred immunity against accountability.
Wike’s anger, even if fiery, was rooted in a legitimate concern: that no individual, however connected or retired, should deploy the military to protect personal interests. That sentiment echoes the fundamental democratic creed that the law is supreme, not personalities. If his passion overshot decorum, it was perhaps a reflection of a nation weary of impunity.
On the other hand, the soldier in question is a symbol of another truth: that discipline, respect for order, and duty to hierarchy are ingrained in our armed forces. He may have been caught between conflicting instructions one from his superiors, another from a civilian minister exercising his lawful authority. The confusion points not to personal failure but to institutional dysfunction.
It is, therefore, simplistic to turn the incident into a morality play of good versus evil.
*********”**** What happened was an institutional embarrassment. Both men represented facets of the same failing system a polity still learning how to reconcile authority with civility, law with loyalty, and service with restraint.
In fairness, Wike has shown himself as a man of uncommon courage. Whether in Rivers State or at the FCTA, he does not shy away from confrontation. Yet courage without composure often feeds misunderstanding. A public officer must always be the cooler head, even when provoked, because the power of example outweighs the satisfaction of winning an argument.
Conversely, soldiers, too, must be reminded that their uniforms do not place them above civilian oversight. The military exists to defend the nation, not to enforce property claims or intimidate lawful authorities. Their participation in purely civil matters corrodes the image of the institution and erodes public trust.
One cannot overlook the irony: in a country where kidnappers roam highways and bandits sack villages, armed men are posted to guard contested land in the capital. It reflects misplaced priorities and distorted values. The Nigerian soldier, trained to defend sovereignty, should not be drawn into private or bureaucratic tussles.
Sycophancy remains the greatest ailment of our political culture. Many of those who now cheer one side or the other do so not out of conviction but out of convenience. Tomorrow they will switch allegiance. True patriotism lies not in defending personalities but in defending principles. A people enslaved by flattery cannot nurture a culture of justice.
The Nigerian elite must learn to submit to the same laws that govern the poor. When big men fence off public land and use connections to shield their interests, they mock the very constitution they swore to uphold. The FCT, as the mirror of national order, must not become a jungle where only the powerful can build.
The lesson for Wike himself is also clear: power is best exercised with calmness. The weight of his office demands more than bravery; it demands statesmanship. To lead is not merely to command, but to persuade — even those who resist your authority.
Equally, the lesson for the armed forces is that professionalism shines brightest in restraint. Obedience to illegal orders is not loyalty; it is complicity. The soldier who stands on the side of justice protects both his honour and the dignity of his uniform.
The Presidency, too, must see this episode as a wake-up call to clarify institutional boundaries. If soldiers can be drawn into civil enforcement without authorization, then our democracy remains at risk of subtle militarization. The constitution must speak louder than confusion.
The Nigerian public deserves better than spectacles of ego. We crave leaders who rise above emotion and officers who respect civilian supremacy. Our children must not inherit a nation where authority means shouting matches and intimidation in public glare.
Every democracy matures through such tests. What matters is whether we learn the right lessons. The British once had generals who defied parliament; the Americans once fought over states’ rights; Nigeria, too, must pass through her own growing pains but with humility, not hubris.
If the confrontation has stirred discomfort, then perhaps it has done the nation some good. It forces a conversation long overdue: Who truly owns the state — the citizen or the powerful? Can we build a Nigeria where institutions, not individuals, define our destiny?
As the dust settles, both the FCTA and the military hierarchy must conduct impartial investigations. The truth must be established — not to shame anyone, but to restore order. Where laws were broken, consequences must follow. Where misunderstandings occurred, apologies must be offered.
Let the rule of law triumph over the rule of impulse. Let civility triumph over confrontation. Let governance return to the path of dialogue and procedure.
Nigeria cannot continue to oscillate between civilian bravado and military arrogance. Both impulses spring from the same insecurity — the fear of losing control. True leadership lies in the ability to trust institutions to do their work without coercion.
Those who witnessed the clash saw a drama of two gladiators. One in starched khaki, one in well-cut suit. Both proud, both unyielding. But a nation cannot be built on stubbornness; it must be built on understanding. Power, when it meets power, should produce order, not chaos.
We must resist the temptation to glorify temper. Governance is not warfare; it is stewardship. The citizen watches, the world observes, and history records. How we handle moments like this will define our collective maturity.
The confrontation may have ended without violence, but it left deep questions in the national conscience. When men of authority quarrel in the open, institutions tremble. The people, once again, become spectators in a theatre of misplaced pride.
It is time for all who hold office — civilian or military — to remember that they serve under the same flag. That flag is neither khaki nor political colour; it is green-white-green, and it demands humility.
No victor, no vanquish only a lesson for a nation still learning to govern itself with dignity.
By; King Onunwor
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