The Shortfalls of the Nigerian Oil and Gas Industry Content Act 2010 in Achieving Sustainable Development

The Shortfalls of the Nigerian Oil and Gas Industry Content Act 2010 in Achieving Sustainable Development

Manuchim Lawrence Adele
Copyright: © 2022 |Pages: 15
DOI: 10.4018/978-1-7998-7499-7.ch011
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Abstract

This chapter examines the impact that the concept of “sustainable development” in the Nigerian oil and gas industry has had and is likely to have upon the development of energy, resources, and economic growth in the future of Nigeria upon the focus and scope of energy, resource, and environmental law practice associated with that development. The chapter will adopt the definition of sustainable development as articulated in the Brundtland Report by the World Commission on Environment and Development. It will examine the legal status of Sections 10 and 12 of the Nigerian Oil Industry Content Development Act 2010 and its implication on international trade and sustainable development. The chapter argues that Sections 10 and 12 of the Nigerian Oil and Gas Industry Content Act 2010 do not reflect the meaning and intention of the Brundtland's definition of sustainable development, which evinces normative values, values of equity, and justice for all.
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Brundtland Definition Of Sustainable Development

According to the Brundtland Report by the World Commission on Environment and Development, sustainable development is the “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED, 1987). The Brundtland Report highlights the major socio-political changes that sustainable development implies (Baker et al., 1997). These include poverty elimination, equality in global resource distribution, population control, appropriate technology, lifestyle changes, and effective democratization through increased citizen's participation. Susan Baker, (2006) further argues that sustainable development as espoused in the Brundtland Report is promoted as an agent of social change through three interfaces: the social, the economic, and the ecological. Baker opines that sustainable development is an “on-going” process with “desirable characteristics” that changes over time depending on the locational, historical, political, and cultural contexts, and it would be more appropriate to conceive sustainable development as a concept to “promote” rather than to achieve (Ibid).

Notwithstanding, the three-pillar model of sustainable development has been faulted Dawe and Ryan (Dawe & Kell Ryan, 2003). It has been argued that placing the environment in the same pedestal with economic and social concern is faulty logic as the environment founds the basis for any economic or social wellbeing achieved by man. It is asserted, quite forcefully, that environment is the “floor upon which the stool of sustainable development must stand (Ibid)’’. Since the environment sustains the economic and social wellbeing of man, it stands to reason that the environment cannot be a stool in the pillar of sustainable development, rather it must be considered exogenous and at a more significant level than either the economy or social well-being of humanity (Ibid).

Key Terms in this Chapter

Goods and Services: Tangible or moveable personal property other than money. Things that have value, whether tangible or not the importance of social goods varies from society to society. All things including specially manufactured goods which are moveable at time of identification to the contract for other than money in which is to be paid. Investment securities and things in action.

Local Content: Is the value that an extraction project brings to the local, regional, or national economy beyond the resource revenues. The fastest growing of these measures are local content requirements (LCRs), which are policies imposed by governments that require firms to use domestically manufactured goods or domestically supplied services to operate in an economy.

Standard: A level of quality or attainment. A model accepted as correct by custom, consent, or authority. A criterion for measuring acceptability, quality, or accuracy. A legal standard that is based on contract and perceptions external to a particular person.

Oil and Gas Industry: Oil and gas industry is the sector of industry focused on exploration, data acquisition, development, drilling, production, gathering, refining, distribution, and transportation of hydrocarbons and includes but is not limited to major resource holders, national oil companies, multinational oil companies, drilling, etc.

Procurement: The act of getting or obtaining something. Procurer is one who induces or prevails upon another to do something.

Consideration: Additional things of value to be provided under the terms of a contract. Something such as an act, a forbearance, or a return promise bargained for and received by a promisor from a promise; that which motivates a person to do something, especially, to engage in a legal act. Consideration, or a substitute such a as promissory estoppel, is necessary for an agreement to be enforceable.

Contractors: Persons or firms that undertakes a contract to provide materials or labour to perform a service or do a job. A party to a contract. A contractor who has the knowledge, skills, experience, and available equipment to do the work that he or she is employed to do without creating an unreasonable risk of injury to others and who has the personal characteristics necessary to carry out the work.

Non-Discriminatory: Not making an unfair or prejudicial distinction between different categories of people or things. This means that individuals or groups of individuals which are in comparable situations should not be treated less favourably simply because of a particular characteristic, such as their sex, racial or ethnic origin, religion or belief, disability, age, or sexual orientation.

Operative: Being in or having force or effect; especially, designating the part of a legal instrument that gives effect to the transaction involved. Having principal relevance; essential to the meaning of the whole operative word of the statute or legislation.

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