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Annulment of Oil Licences in Nigeria s Upstream Petroleum Sector: A Legal Critique of the Costs and Benefits

Author

Listed:
  • Olusola Joshua Olujobi

    (Department of Business Management, Covenant University, Nigeria,)

  • Olabode Adeleke Oyewunmi

    (Department of Business Management, Covenant University, Nigeria)

Abstract

Owing to various reasons, tenable and untenable, successive governments in Nigeria have annulled licenses duly granted to identifiable upstream petroleum operators. With due sense of circumspect, when irregularities manifest in the process and the grant of substantive licences, such does not vest in the government an unfettered right to annul the licence. There are evidences of such occurrence in spite of established procedures regulating annulments, commonly referred to as revocation or cancellation. This paper is a critique of the annulment of oil licenses and the associated contractualregulatory dimensions. The validity of the Federal Government s actions also comes to the fore, particularly in the light of renewed drive to attract investments into the upstream sector. Thus, as some benefits are accruable to the players, it is also important to appraise the consequential costs attributable to undue annulment of oil licenses. The paper adopts a descriptive analytical method of available facts, expounds requisite statutory provisions and utilizes judicial precedents to highlight the context of the study. It is imperative that the Federal Government adheres to established procedures on oil license annulment, as a contrary posture will amount to several negative outcomes.

Suggested Citation

  • Olusola Joshua Olujobi & Olabode Adeleke Oyewunmi, 2017. "Annulment of Oil Licences in Nigeria s Upstream Petroleum Sector: A Legal Critique of the Costs and Benefits," International Journal of Energy Economics and Policy, Econjournals, vol. 7(3), pages 364-369.
  • Handle: RePEc:eco:journ2:2017-03-45
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    References listed on IDEAS

    as
    1. Olabode A. Oyewunmi & Olusola J. Olujobi, 2016. "Transparency in Nigeria s Oil and Gas Industry: Is Policy Re-engineering the Way Out?," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 630-636.
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    Cited by:

    1. Olusola Joshua Olujobi & Elizabeta Smaranda Olarinde & Tunde Ebenezer Yebisi & Uchechukwu Emena Okorie, 2022. "COVID-19 Pandemic: The Impacts of Crude Oil Price Shock on Nigeria’s Economy, Legal and Policy Options," Sustainability, MDPI, vol. 14(18), pages 1-20, September.
    2. Olusola J. Olujobi & Olabode A. Oyewunmi & Adebukola E. Oyewunmi, 2018. "Oil Spillage in Nigeria s Upstream Petroleum Sector: Beyond the Legal Frameworks," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 220-226.
    3. Olujobi, Olusola Joshua & Irumekhai, Oshobugie Suleiman, 2024. "Strategies and regulatory measures for Combatting illicit mining operations in Nigeria: A comprehensive legal perspective," Resources Policy, Elsevier, vol. 88(C).
    4. Olusola Joshua Olujobi & Tunde Ebenezer Yebisi & Oyinkepreye Preye Patrick & Afolabi Innocent Ariremako, 2022. "The Legal Framework for Combating Gas Flaring in Nigeria’s Oil and Gas Industry: Can It Promote Sustainable Energy Security?," Sustainability, MDPI, vol. 14(13), pages 1-20, June.
    5. Daniel E. Ufua & Olusola J. Olujobi & Mercy E. Ogbari & Joseph A. Dada & Oluwatosin D. Edafe, 2020. "Operations of small and medium enterprises and the legal system in Nigeria," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-7, December.
    6. Olusola Joshua Olujobi, 2020. "RETRACTED: Analysis of the Legal Framework Governing Gas Flaring in Nigeria’s Upstream Petroleum Sector and the Need for Overhauling," Social Sciences, MDPI, vol. 9(8), pages 1-19, July.
    7. Olusola Joshua Olujobi & Daniel E. Ufua & Uchechukwu Emena Okorie & Mercy E. Ogbari, 2022. "Carbon emission, solid waste management, and electricity generation: a legal and empirical perspective for renewable energy in Nigeria," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 22(3), pages 599-619, September.

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    More about this item

    Keywords

    K32; K12; K2; K42; P28;
    All these keywords.

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • K2 - Law and Economics - - Regulation and Business Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment

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