Abstract
This study examines the relationship between political governance and extractive industry performance in Nigeria. It tends to know the contributions of political governance structures in the Nigerian extractive economy sector and whether the political sector has been able to achieve effective regulatory framework leading to revenue transparency which is the key factor in the attainment of sustainable development. In carrying out this research we made use of secondary data, mostly, the relevant literatures on the subject matter. Descriptive analytical approach was employed, while structural functionalism approach was adopted as the framework of analysis. The study revealed among other things that weak political institutions to undertake effective checks and balances and the virtual absence of regulatory framework created opportunistic gaps for predatory elites to institutionalized corruption in the oil extractive industry. The end result is loss of revenue, deep poverty and poor standard of living. Based on this, the paper recommended amongst others, the development of effective framework for transparency and accountability through strengthening of political governance, effective implementations of the Nigerian Extractive Industry Transparency Initiative (NEITI) Act of 2007, and fundamental restructuring of the Nigerian political and administrative structure and socialization of the social mode of production. DOI: 10.5901/mjss.2015.v6n2s1p596
Highlights
The imperative for good governance in the extractive industry in Nigeria cannot be over-emphasized
To achieve the enduring significance of the subject under discussion, the paper is organized in threefold dimension; first, the paper conceptualizes the key word – governance, secondly, it discusses the challenges of political governance and suggests the ways of enhancing political governance in Nigeria for better extractive resource management
The failure to institutionalize a culture of transparency that calls for constant assessment and which interrogates the benefit of particular decisions for the greater/effective extractive resources management is a significant challenge that continues to undermine sustainable development in Nigeria
Summary
The imperative for good governance in the extractive industry in Nigeria cannot be over-emphasized. Whichever yardstick is applied – income, mutation, access to health services, access to potable water, life expectancy, access to education, human physical security (Kawzy, 2001); Nigeria fair very poorly in relation to the rest of the world This reality underscores the importance of strengthening political governance to realize the needs of society, the need to facilitate the creation of opportunities within which the citizens can identify, develop and use the resources necessary to build a peaceful, equitable and just society. Instead of political governance to focus on decreasing the key structural risk factors in extractive industries such as neglect of corporate social responsibilities, poor compliance to local content regulation, inadequate compensation practice, lack of revenue transparency, the governance structure institutionalized discrimination and other ill-practice especially corruption, to fuel violent conflict in the industrial sector The former Governor of Central Bank of Nigeria, Malam Sanusi L. To achieve the enduring significance of the subject under discussion, the paper is organized in threefold dimension; first, the paper conceptualizes the key word – governance, secondly, it discusses the challenges of political governance and suggests the ways of enhancing political governance in Nigeria for better extractive resource management
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