CPEEL Special Seminar Series Titled “Allocation and Acquisition of Shares under the Petroleum Industry Governance Bill: Social, Economic and Legal Implications.”
By: Professor Emeka Duruigbo
Thurgood Marshall School of Law,
Texas Southern University,
United States of America
Date: Thursday August 24, 2017
Time: 12:00 PM
Partial privatization is in vogue! In 2016, Saudi Arabia expressed the intention of divesting five percent of its stake in Saudi Aramco and selling the shares to private investors. In May 2017, the Nigerian Senate passed the Petroleum Industry Governance Bill (“PIGB”) that contains provisions on allocation and acquisition of a minority of shares by private interests in a proposed National Oil Company. The move toward partial private ownership, a reflection of the complicated reality of the modern energy world, holds immense promise but is also fraught with challenges.
In addition to anticipated improvement in corporate management, funds raised from the sale of shares may be deployed toward economic revitalization, social investment and diversification of energy sources. Carefully designing and properly implementing the privatization plan is imperative to avoid social, economic and political problems, including the entrenchment of a disruptive oil oligarchy and diminution of the people’s patrimony. This presentation examines the strengths and weaknesses of the PIGB provisions on partial privatization and makes some recommendations toward accomplishing the Bill’s objectives.