In response to this new goal, Dr. Emmanuel Egbogah, the Special Adviser to the President on petroleum, announced this and other recommendations. Primarily would be the submersion of the Nigerian National Petroleum Cooperation (NNPC) into the new National Oil Company, to be known as the Nigerian Petroleum Company of Nigeria (NAPCON), which will be a fully integrated oil and gas company competing locally and internationally in all sectors of the industry. Egbogah also mentioned additional projects such as the phased implementation of the Oil and Gas Reform Committee (OGRC) report, the constitution of a steering committee charged with full implementation of the report, and the immediate establishment of a National Energy Council (NEC) for all major policy and strategic decisions relating to the industry[2].

According to Egbogah, the National Energy Directorate (NED) will perform public sector roles of government, including policy formulation, while the Petroleum Inspectorate Commission (PIC) and the Petroleum Products Distribution Authority (PPDA) will perform regulatory functions. He also stated that Commercial/ Business activities shall be carried out by NAPCON, which according to him, could be a commercial holding company with an ability to acquire commercial funds from the capital market [3].

The Nigerian government predicts the 2008 budget on $53 per barrel and expects to produce at full capacity if the governmental movement to maintain peace in the Niger Delta region is sustained. While speaking during the Shell Nigeria Exploration and Production Company (SNEPCO)’s conference for leadership growth in Lagos, the Minister for National Planning Commission, Senator Sanusi Daggash, said that although Nigeria has the capacity to produce about 3 million barrels of crude oil per day, it is targeting 2.5 million as a result of new commitment the Federal Government has made to ensure peace reigns in the region. Daggash explained that with the rapid development experienced in the oil sector over the past few years, a large percentage of crude oil exports in 2008 are expected to come from deep offshore production. Currently, deep offshore holds the larger part of the nations crude oil reserves with estimation capacity of 25 billion barrels, while onshore reserves accounts for just 11 billion barrels. The minister noted that the government has embarked on the reformation of the oil sector in order to create a level playing ground for private investors, adding that the nation’s economy has to be run with some level of trust [4].

So how does the rise in oil help the population at large? In the past years there have been huge amounts of oil exportation to foreign countries while many people continued earning below minimum wage and living in poverty. The difference now is in the present government and the new policies implemented by them. The Yar’adua government stated that they would leave no stone unturned in the revival of Nigeria’s weak infrastructures and institutions. While speaking with a delegation of the Northern Union, which was led by Dr. Abubakar Olusola Saraki, President Yar’adua said that his administration would take necessary steps to address the phenomenon of economic growth without real development in Nigeria. His main focus is on poverty reduction and ensuring that all Nigerians live above the poverty line. The President has promised to implement police force and programs to solve the problem of security, unemployment, poverty and disease. He is also implementing a document presented by the Northern Union titled: ‘Growing the Nigerian Economy to Fight Poverty’, of which he assured will be factored into his administration’s economic agenda. With the support of the Union, Yar’adua hopes that the document will help formulate a marshal plan, based on social and economic justice, to fight poverty in Nigeria. They believe this will help create a policy of social justice allowing those who have been left out to be brought in, and those left behind to catch up [5].

The IIJD believes that this approach taken by the President is a major step in curtailing poverty, and commends him for the progress in the reduction of corruption and strengthening of the 1999 constitution.  However, for the economy to remain stable, and for poverty to be eradicated, one must look for other means besides oil, thereby using the petroleum and mineral wealth to create viable post-natural resource economies, work towards enhancing technology-building economic linkages, and encouraging re-investment in Nigeria, especially in the areas of manpower training, engineering, and fabrication yards. This will then serve as a necessary catalyst to establishing a technological platform upon which to build other sectors of the economy, creating needed jobs and boosting economic growth and resulting in reducing unemployment [6]. In this way, all individuals could have jobs in various sectors and pay taxes that will inevitably improve the state – society relationship, by allowing individuals to have a voice in governmental issues.