The Trajectory of Evolution of State Participation in Natural Resources in Developing Nations under International Law: The Nigerian Experience

Abstract

The growth and development of a nation largely depends on how its natural resources are utilized for the good of the people. However, the narrative in some developing countries, particularly Nigeria is scary and this has birthed huge concerns on the global scene. The aim of this paper is to examine the history and growth of natural resource development by States for the betterment of the people in selected oil countries with emphasis on Nigeria. Nigeria’s experience with state participation in the development of its natural resources is uniquely discussed in this paper because; Nigeria being the most populous African nation and having the largest oil and gas deposits in Africa still has almost half of its population living below the poverty line. The study examined state participation in four different jurisdictions including; Venezuela, Indonesia, Angola and Nigeria. Focus is placed on the Nigeria experience. The study adopted a qualitative and doctrinal research methodology. At the root of all these frictions with natural resource development in Nigeria is the State’s inadequate policy and control with emphasis on localization to ensure that the center holds. Nigerian state’s participation in natural resource development has grown from mere participation agreement to state corporation participation as a player in the oil and gas industry. Indigenous companies being enabled by the local content legislation have actively participated in the development of natural resources. However, while the aim of state participation in the development of natural resource is to improve the social and economic wellbeing of citizens, it goes without saying that the Nigerian people are fettered with resource injustice of which the state is culpable. It is not new that Nigeria still lacks and pays heavily for what it produces in abundance. It is called the resource curse syndrome.