Strengthening Political Governance in the Extractive Industry: Panacea for Revenue Transparency and Development in Nigeria

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