There Was No Law To Protect Nigerians When Oil Was Discovered
Former President Goodluck Jonathan has said that when oil was discovered in Nigeria in 1956, the country lacked the necessary legal frameworks to safeguard its interests—an oversight that has had lasting effects on its development.
Speaking at the Champions of Nigerian Content Awards Dinner in Yenagoa, Bayelsa State, Jonathan reflected on the early missteps in Nigeria’s oil sector governance.
He recounted a conversation with a Ugandan who described how his country developed essential skills and legal safeguards before signing any agreement with international oil companies to avoid the pitfalls that befell Nigeria.
According to Jonathan, Nigeria failed to enact protective laws at the onset of its oil discovery, leaving the sector largely under foreign control and influence for decades.
“If at the beginning of the oil discovery we had laws designed to protect us, Nigeria would have gone further than this. But we didn’t have those kinds of laws,” Jonathan said.
He cited the Mineral Oil Ordinance of 1886 and the Mineral Oil Ordinance of 1914 as the earliest legislative instruments governing Nigeria’s oil sector, pointing out that Nigerians likely played little or no role in their formulation. It was not until 1969, 13 years after oil was discovered and nearly a decade after independence, that Nigeria enacted the Petroleum Act, which laid the foundation for its oil industry.
Jonathan also addressed the journey toward local participation in the oil sector, recounting how his administration pursued legislation to ensure Nigerian involvement in oil and gas operations. The push culminated in the passage of the Local Content Act in April 2010, a decision he said was deeply influenced by an earlier trip to China during his time as deputy governor of Bayelsa State in 2000.
During a visit to Daqing, one of China’s oil capitals, Jonathan and his delegation were shown how China had developed its oil sector, including the local manufacturing of most industry needs.
He noted that although oil was discovered in commercial quantities in Nigeria in 1956 and in China two years later in 1958, China had, by 2000, built a robust local industry, something Nigeria had failed to do. This stark contrast led him to support the Nigerian Content Bill when it was presented by the then Minister of Petroleum, who informed him that it was originally a private bill sponsored by Senator Lee Maeba.
“What is the story about the Nigerian content, or what’s popularly called the local content? I signed that law in April 2010 because of the experience I had in the Year 2000,” Jonathan said. He emphasised that the passage of the Local Content Act was critical in correcting the structural gaps that had long undermined Nigeria’s oil sector, ensuring that more opportunities and value creation remained within the country.
