The Role of States and International Institutions in Enhancing Corporate Investment and in Protection of Indigenous People's Right in the Governance of Resources Rich Countries

Abstract

This article examined the Nigeria oil and gas sector as a case study in discussing the role of the state and international institutions in the area of Foreign Direct Investment (FDI) and regulation of the gas sector in Nigeria. In this connection, the paper studied the effects of FDI on the development of Nigerian oil and gas sector. FDI is presumed to profit an unindustrialized country like Nigeria, not only by improving local investment, but also in terms of employment generation, transfer of technology, increased domestic competition, growth in Gross Domestic Product, Balance of Trade benefit and other affirmative economic indexes. The work scrutinized the investment patterns in the oil and gas natural resources and evaluated the legal framework with regards to FDI and the challenges faced in the regulation of the sector. It further evaluated the regulation of multinational corporations operations by the states and underscored the role of international institutions in the regulation of corporate activities. At the end, the work identified inherent lapses and proffered suggestions as to the way forward.