LEGAL AND REGULATORY FRAME WORK FOR RESOURCE DIVERSIFICATION IN NIGERIA: GLOBALIZATION AND THE PROSPECTS OF RESOURCES DIVERSIFICATION

Abstract

For some time now, the mainstay of Nigeria’s economy has been foreign exchange earnings from oil sector. The country is reputed to have large quantities of unexploited natural gas oil reserves. As the largest exporter of oil with the biggest natural gas reserves in Africa, most of the Foreign Direct Investment into Nigeria has gone into the oil and gas sectors, although more recently into telecommunications and manufacturing as well. Oil and gas currently represents 95% of foreign exchange earnings and 80% of budgetary revenues. Consequently, Nigeria faces the task of diversifying and reforming its petroleum based economy. Through the National Empowerment and Development Strategy (NEEDS) adopted in 2003, the government is currently seeking foreign direct investment in the non-oil sectors with particular focus on manufacturing and agro-allied industries. This paper highlighted the legal and regulatory framework for resource diversification in Nigeria. The paper established that no regularoty framework no matter how robust it has been packaged could solve the economic problem of any nation including Nigeria, except such regulation is coupled with the existence of a disciplined evnironment and responsible leadership. Consquently, the paper recommended that all administrative bottlenecks that constitute clog towards the effective implementation of the legal framework should be eradicated. The paper further recommended the enthronement of corrupt free business environment and responsible leadership that will usher in the much needed resource diversification in Nigeria.