Oshionebo, Evaristus --- "Fiscal Regimes for Natural Resource Extraction: Implications for Africa’s Development" [2011] ELECD 408; in Botchway, N. Francis (ed), "Natural Resource Investment and Africa’s Development" (Edward Elgar Publishing, 2011)

Book Title: Natural Resource Investment and Africa’s Development

Editor(s): Botchway, N. Francis

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781848446793

Section: Chapter 7

Section Title: Fiscal Regimes for Natural Resource Extraction: Implications for Africa’s Development

Author(s): Oshionebo, Evaristus

Number of pages: 47

Extract:

7. Fiscal regimes for natural resource
extraction: implications for Africa's
development*
Evaristus Oshionebo

1 INTRODUCTION

The ownership of natural resources is usually vested in the national gov-
ernments of African countries. For example, in Nigeria `the entire prop-
erty in and control of all minerals, mineral oils and natural gas in, under
or upon any land in Nigeria or in, under or upon the territorial waters and
the Exclusive Economic Zone of Nigeria shall vest in the Government of
the Federation.'1 Similarly, in Ghana `[e]very mineral in its natural state
in, under or upon land in Ghana, rivers, streams, water-courses through-
out the country, the exclusive economic zone and an area covered by the
territorial sea or continental shelf is the property of the Republic and is
vested in the President in trust for the people of Ghana.'2 And in South
Africa, `mineral and petroleum resources are the common heritage of all
the people of South Africa and the State is the custodian thereof for the
benefit of all South Africans.'3
The vesting of ownership of natural resources in the national govern-
ments of African countries is significant in several ways. First, those
who wish to exploit Africa's natural resources must enter into legal or
contractual relationships with African governments as a precondition to
the exploration and extraction of resources. These relationships usually
manifest in the form of concessions, including licences and leases, granted
by governments to resource extraction companies.4 Secondly, the ...