Former President Goodluck Jonathan has said that Nigeria did not have the legal frameworks necessary to protect its interests when oil was discovered in 1956—a gap that, he argues, has had lasting negative effects on the country’s development.
Speaking at the Champions of Nigerian Content Awards Dinner in Yenagoa, Bayelsa State, Jonathan reflected on how the absence of strong legal protections left Nigeria’s oil sector vulnerable to foreign control. He compared Nigeria’s early approach to that of Uganda, where he said essential legal safeguards were put in place before deals were signed with international oil companies.
“If we had protective laws from the start, Nigeria would have progressed much further,” Jonathan said. He referenced early oil laws like the Mineral Oil Ordinances of 1886 and 1914, noting that they were created without Nigerian input. It wasn’t until 1969—13 years after oil was discovered and nearly a decade after independence—that Nigeria passed the Petroleum Act to formally regulate the sector.
Jonathan also recounted his administration’s efforts to boost local participation in the oil and gas industry, particularly through the passage of the Nigerian Content Act in April 2010. He said this initiative was inspired by a 2000 visit to Daqing, China—one of the country’s oil hubs—where he witnessed firsthand how China had developed its local capacity and industry infrastructure.
Despite oil being discovered in Nigeria in 1956 and in China two years later, China had by 2000 built a self-sufficient oil industry, while Nigeria remained dependent on foreign expertise and imports. This contrast, Jonathan said, reinforced his decision to back the Nigerian Content Bill, which was initially introduced as a private bill by Senator Lee Maeba and later presented by the then Minister of Petroleum.
“The Local Content Act was a turning point,” Jonathan said. “It helped close the structural gaps and ensured more of the value from Nigeria’s oil stayed within the country.”