TO WHAT EXTENT IS THE ANNEXATION TEST RELEVANT TO THE OWNERSHIP OF CRUDE OIL IN NIGERIA?

Abstract
Crude oil development in Nigeria has been a thing of concern since the discovery of oil in the Niger-Delta region in Nigeria. Oil has been the only source of income to the economy and therefore it affects all other facets of the economy for productions and other means in which crude oil could be engage to strengthen the sectors of the oil and gas industries in Nigeria, government has decided from time immemorial to have the control of all natural resources in Nigeria and its management. Meanwhile, the government has come into the control and management of crude oil in Nigeria, to enable and or create sectors that would facilitate the activities and expand the economy and create a closer relationship with other countries doing oil business in Nigeria. It is of great important that government annexation would help the oil and gas sector to strive in the development of oil and gas industry. The proclamation of the annexation by the government to control the crude oil would place hands on deck to create enabling laws and regulations that would make the oil and gas industry strong. It is against this backdrop that this paper would explore the means of efficiency aid sustainable law. It argues that, there are deficiencies with the legal and the institutional framework of the petroleum sector regime. The paper suggests among other things that the International Oil Company (IOC) should be compelled at this point of engagement and entry, to engage the communities close to where these facilities would be built.

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