Privatization albeit a budding economic idea has been shown to work in different parts of the world allowing governments to spread their on the various sectors of economy, creating an enabling environment through proper regulation but leaving the intricate daily managements of each industry to the Private sector, even in Nigeria, some industrial sectors like the telecommunications sector has been privatized with significant success. My paper will review the issues plaguing Nigeria’s oil industry and make a case for Privatization as a possible solution to Nigeria’s economic stagnation in its oil sector.